The structure and funds placement had been discussed from the 2008 crisis. The regulator insists on limiting the choice of investment instruments, but insurers consider it unfair, as the State had provided help, including financial, to Russian banks during the crisis, while insurers demand the right to receive subordinate loans from shareholders for years and are denied.

The Russian insurance community defines life insurance as the strategic priority for the next few years.

According to Fitch Rating insurance market review, the major part of the insurance premium in the Russian, Kazakhstan and Belarus insurance markets is secured by property and liability insurance sectors and others, except life insurance. At the same time the reverse is true for a number of developed economies: life-insurance contracts account for over 60% of income.

Rosgosstrakh estimates that life-insurance fess (excluding CMI) in 2011 will not exceed 5% compared to 4% in 2010.

Many years ago the Russian regulator assigned life insurers to a special category, which cleaned up the market, but did not give an impetus to the classic life insurance sector.

The summary of the last Fitch report states there is a profit drop in all other segments except life insurance in the RF. Losses are extremely high and reach 100% in the analyzed companies, which account for 70% of "non-life" insurance. Widening the number of respondents makes the picture even worse, Fitch experts say.

After a year of preparatory works the All-Russian Insurance Association and the Life Insurers Association started active negotiations with the authorities on State support for sellers of long-term life-insurance contracts.

Life insurers think that Russia will need a state life insurance support program in the future. This will become more topical with the growing deficit of funds for state pension payments.

Insurers are in dire need of a level playing field for private pension funds and life insurers with long-term pension plans.

Head of the Life-Insurance Committee of the All-Russian Insurers Association Maksim Chernin told Interfax that "up to now a company which purchases pension plans for employees from ICs, had to pay 34% off the amount in social tax (this did not cover highly-paid employees – Interfax).

"Private pension funds, offering similar products, do not pay this tax", Maksim Chernin continues. "The new taxation scheme is introduced from January 1, which will widen the gap in pension plan conditions between private pension funds and insurers".

In his opinion, companies have no added stimulus to accumulate pensions for their employees.

The All-Russian Insurers Association President Andrey Kigim explained to Interfax that "the State is right to pose questions to insurers about guarantees for the clients, additional control and transparency".

Кигим А.С.