February 25, 2016, 09:54 / Finance

The Central Bank revoked licenses from three insurance companies

The Central Bank of Russia has revoked insurance licenses from insurance companies Agros, Invest-Garant and the Capital Insurance and Reinsurance Center, the regulator said in a statement.

These actions were carried out “in connection with the failure to eliminate within the prescribed period violations of insurance legislation, which were the basis for the suspension of the license.” Thus, the Bank of Russia indicates that all three insurance companies did not comply with the procedure and conditions for investing their own funds and insurance reserves.

In addition, IC Invest-Garant did not comply with the procedure for forming insurance reserves, the regulator notes in a statement.

In connection with the revocation of licenses, insurance companies are required to make a decision to terminate insurance activities, fulfill obligations under insurance contracts, including making insurance payments for insured events that have occurred, ensure the transfer of obligations under insurance contracts, or terminate them.

Decisions to revoke licenses will come into force on the date of publication of the relevant messages in the Bulletin of the Bank of Russia.

The Central Bank also writes that the licenses of the Borovitsky Insurance Company, as well as the insurance companies Invest-Reserve, Gala, Republican Insurance House, and Vysota, were suspended.

Suspension of the licenses of an insurance business entity means a ban on concluding insurance contracts, as well as introducing changes that entail an increase in the obligations of the insurance business entity into the relevant contracts. At the same time, the regulator points out, the insurance organization is obliged to accept applications for the occurrence of insured events and fulfill obligations.

Previously on the topic: The Central Bank wants to increase the activity of insurers in the securities market