Western markets losing 10% to Russian reinsurer
Monday, 01 09 2017, Category: Insurance and Reinsurance, Country: Europe
The new Russian National Reinsurance Company has increased pressure on Western markets already challenged by the international sanctions regime with international reinsurers already losing a significant amount of business as a result.
That is the view of Leonid Zubarev, senior partner at CMS Russia, who argues that international reinsurance markets providing coverage in the Russian Federation now face losing a sizable chunk of a dwindling pot of business. From 1 January 2017, the NRC began collecting 10 percent of outward premiums.
“From January 1 2017, 10% of outward reinsurance premiums will have to be ceded directly to the NRC, introducing a potentially unwelcome income squeeze and some tricky claims handling protocols to boot,” Zubarev said.
Source: Intelligent Insurer