LAWYERS. TAX CONSULTANTS.
2021 year - 22 years delivering top-class legal services
On August 22, 2021 the norms of Federal Law No. 343-FZ dated July 02, 2021 came into force amending Law No. 4015-1 dated November 27, 1992 "On Organization of Insurance Business in the Russian Federation" (hereinafter referred to as the "Law") allowing foreign insurance companies to operate in Russia without registering a subsidiary.
Now foreign insurance companies can carry out insurance activities in Russia by establishing branches on the territory of the Russian Federation.
In accordance with Article 32 of the Law, foreign insurance organizations may be issued licenses to carry out:
1) voluntary life insurance;
2) voluntary personal insurance, except for voluntary life insurance;
3) voluntary property insurance;
4) type of insurance, implementation of which is provided for in the federal law on a particular type of compulsory insurance (compulsory civil liability insurance of vehicle owners);
5) reinsurance in the case of assumption under the contract of reinsurance obligations on the insurance payout.
Herewith, there is a restriction on the choice of applicable law to the insurance contract concluded by a foreign insurance organization with consumers through a branch on the territory of the Russian Federation — the Russian law applies to such legal relations by virtue of Art. 35 of the Law.
Foreign insurance organizations are obliged to establish a branch on the territory of the Russian Federation and obtain a license for the relevant type of insurance activities to carry out insurance activities on the territory of the Russian Federation.