The Monetary Companies Fee and the Monetary Supervisory Service introduced insurance coverage deregulation plans on Nov. 20.
In response to the plans, every life or non-life insurance coverage firm can have a subsidiary dealing with a single product, similar to pet insurance coverage and driver insurance coverage. As well as, specialised insurers may be based to deal with merchandise, every with a interval of as much as one yr and a advantage of as much as 50 million received.
At current, an insurance coverage firm’s on-line advertising is proscribed if it shares the identical dad or mum firm with an online-only insurance coverage firm. This limitation has been eradicated within the plans. Rules associated to non-face-to-face contact between solicitors and prospects have been relaxed, and insurance coverage phrases and situations not need to be learn and recorded within the case of a video name.
Insurers’ derivatives buying and selling ceiling has been eradicated from 6 p.c of whole belongings. Their bond issuance restrict has been raised, and liquidity ratio calculation has been modified in favor of them. On the similar time, fines proportional to unfair earnings have been launched and disciplinary measures that planners might face have been diversified to incorporate gentle ones similar to warning in addition to suspension and deregistration.