When buying a policy, a client effectively lends money to an insurance company against a promise to pay in the future. So the main question is whether the company will be able to keep that promise in one, five or twenty years. The Bank of Russia monitors this, and clients can check an insurer's reliability themselves using public data.

Who regulates insurers and how

Since 2013 the Bank of Russia has supervised the insurance market. The core financial stability requirements are set out in Russian Federation Law No. 4015-1 "On the Organisation of Insurance Business in the Russian Federation" and in Bank of Russia regulations. The law names the guarantees of an insurer's financial stability as economically justified premium rates, insurance reserves sufficient for future payments, own funds (capital) and reinsurance.

Main requirements

Capital

The minimum authorised capital of an insurer is set by Article 25 of Law No. 4015-1: a base amount is multiplied by coefficients depending on the lines of business. Requirements for life insurance and reinsurance are higher than for property insurance.

Beyond authorised capital, the Bank of Russia requires a company's actual capital to match the risks it has taken on. With the move to risk-based regulation (Bank of Russia Regulation No. 781-P "On Requirements for the Financial Stability and Solvency of Insurers"), the key indicator became the capital adequacy ratio (NDK). It compares the insurer's capital with the amount needed to cover its risks: insurance, market, credit and operational. The ratio must be at least 100%. The old indicator, the "solvency margin", has given way to this more accurate model.

Insurance reserves

An insurer must set aside reserves for future payments: for events that have not yet occurred under existing contracts, for reported but unsettled claims, and for incurred but not yet reported claims. The Bank of Russia sets the rules for calculating reserves, and their adequacy is verified during the mandatory actuarial assessment.

Assets

The money backing reserves and capital cannot be invested in just anything. The Bank of Russia limits the share of risky assets and concentration in a single issuer or bank, and requires a certain quality and liquidity of assets. This protects clients if the financial market falls sharply.

Reinsurance

Insurers pass part of large risks to reinsurers so that a single large loss does not undermine their stability. More in the reinsurance section.

What happens in case of breaches

Insurers regularly report to the Bank of Russia. If requirements are breached, the regulator may issue an order, prohibit new contracts, demand a solvency recovery plan, restrict or suspend the licence and, as a last resort, revoke it. Obligations under existing contracts do not disappear: the company must settle them or transfer its insurance portfolio to another insurer.

Some lines of insurance have additional protection mechanisms. Under OSAGO (compulsory motor third-party liability insurance), if an insurer's licence is revoked or it goes bankrupt, victims receive compensation payments from the Russian Union of Motor Insurers (RSA). For life insurance, a guarantee system operated by the Deposit Insurance Agency (DIA/ASV) will start operating on 1 January 2027 (Law No. 477-FZ); until then there are no such guarantees.

Credit ratings

A rating is an independent assessment of a company's ability to meet its obligations. In Russia, ratings are assigned by credit rating agencies included by the Bank of Russia in its register, among them ACRA, Expert RA, NCR and NRA. The scales differ, but the logic is the same: the closer to AAA, the higher the reliability. Pay attention to the outlook ("stable", "positive", "negative") and the date the rating was assigned. The absence of a rating does not in itself indicate problems — smaller companies often do not commission one.

Where a reliability rating has been assigned, we show it in company profiles in the insurance companies catalogue.

How to check an insurer yourself

  1. Licence. Find the company in the directory of financial market participants on the Bank of Russia website and make sure its licence covers the type of insurance you need.
  2. RSA membership. To sell OSAGO, an insurer must be a member of the Russian Union of Motor Insurers.
  3. Rating. Check whether it has a rating from one of the accredited agencies and what the outlook is.
  4. Disclosure. An insurer must publish information about its licence, insurance rules and financial statements on its website. Missing data is a warning sign.
  5. Scale and track record. Premium volume, years on the market, the share of large risks reinsured.
  6. Claims practice. Look at how the company settles claims and how often disputes reach the financial ombudsman and the courts.

When reliability matters most

  • long-term life insurance and savings plans — contracts for 5–20 years;
  • large corporate risks — industrial property, construction, liability;
  • mortgage insurance — banks accept policies from insurers that meet their requirements.

Polis Re specialists will help you compare insurance companies by terms and reliability — submit a request.