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Shvetsov: Managed Bailouts May Restore Trust in Russia’s Insurance

17.10.2013 12:41 / PRIME

A system of insurance companies controlled rehabilitation could boost consumer trust in the insurance market, said Head of Bank of Russia Financial Markets Service Sergey Shvetsov at ‘Financial Market Regulation Policy Markers’ MIFC Strategic Session at RIA Novosti.

“We cannot create a bankruptcy-safe system, however, we can create a system that will effectively clear up the aftereffects of bankruptcy”, he said.

He said that a system like that could facilitate quick transfer of liabilities and assets of a problem company to healthy insurers, change of insurance company ownership, if current owners lack the resources to bail out the company.

“Controlled rehabilitation and bankruptcy are quite likely to boost trust in insurance and drive healthy competition”, said Shvetsov.

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