Insurance Market
The Belarus insurance market began its formation in 1990. The State regulation of insurance activity is a function of the Department of Insurance Supervision of the Ministry of Finance of Belarus.
Insurance Board operates at the Council of Ministers. In order to coordinate activities of insurers and insurance brokers, protect own interest and implement joint programmes the Belarusian Insurance Union has been formed.
Activities of insuring organizations are regulated by the Law of the Republic of Belarus “On Insurance” (1993) and Provision on Insurance Activities in the Republic of Belarus (2000).
Currently, there are more than 30 insuring organizations operating in Belarus, with 3 of them belonging to the State – “Belgosstrakh”, “Promtransinvest”, “Belneftestrakh”. The largest insurance company is the “Belgosstrakh” (www.belgosstrakh.by) Belarusian Republican Unitary Insurance Enterprise that protects property interests of citizens and legal entities if insured cases occur. Belgosstrakh is the leader in terms of insurance payments received. His share on the insurance market amounts to 60%. Belgosstrakh provides more than 40 kinds of insurance.
Among non-state-owned insurance companies, the largest are “Alvena”, “Task”, “Belingosstrakh”, “Brolly”, “Kupala”, “B&B Insurance Co”, “Belvneshstrakh”.
Broker insurance services give advantages to clients. Concluding of a contract via an insurance broker allows to receive the detailed information on insurers and a range of insurance services provided by different companies.
More than 40 kinds of voluntary, property, liability insurance are effected in the Republic of Belarus. Large insurance companies provide 20 – 25 kinds of insurance services:
- insurance of tourists traveling abroad;
- cargo insurance;
- insurance of foreign citizens;
- insurance for companies and organizations;
- life and health insurance;
- insurance of property, etc.
Compulsory insurance, including automobile liability insurance, industrial accident and disease insurance, liability insurance of carriers and forwarding agents can be made only by state-owned insurance companies.
New kinds of insurance are being introduced into the markets, including insurance of technical assistance and citizens’ expenditures related to cancellation of a holiday trip; liability insurance of commodity producers and producers (sellers) for the quality of production during the after guarantee period. Compulsory medical insurance of foreign citizens entering the Republic of Belarus have been introduced since 2000. The year 2003 was marked by the sale by Belarusian insurers of own “Green Cards”.
Domestic reinsurance market has not yet been formed in Belarus. Reinsurance contracts are optional. Presently the majority of all big risks is reinsured abroad. Reinsurance with partners from off-shore zones by Belarusian insurers is forbidden, even if a domestic insurer or his founder is a founder of a foreign reinsurer.
State controlling bodies apply financial and economic sanctions to insurers for the violation of insurance legislation.
Further information on insurance is available in periodical: “Insurance in Belarus” Magazine produced by the Belarusian Association of Insurers, “Belarusian Insurance Bulletin” issued by the Belarusian Insurance Union, “Finance, accounting, audit” Magazine, as well as web-sites of Belarusian insurers.
