OREANDA-NEWS. January 23, 2008. Starting from December 24, 2007, insurers has a right of placing their reserves in attractive assets to their discretion with no diversification, the Credit-Rating's press office informs. Thereat, the groups of assets remain the same: bank deposits, current accounts, real estate property, securities, right for claim to reinsurers and others. The given decision has been made by the regulator of the national insurance market (State Commission for Regulating of Markets of Financial Services) following a court decision on sue filed by one of insurance companies.

In Credit-Rating's view, these changes will not have impact on market players engaged with classical insurance. Diversification of reserves placement remain inherent for these companies, which operate in the framework of the approved strategies. Apparently, these insurers continue to adhere to prudent and consistent investment policy, considering that the regulator pledges to reestablish norms previously cancelled by the court.

At the same time, the insurers involved in so-called 'scheme insurance', now may place up to 100% of their reserves in both risky instruments and non-liquid securities, which may affect their capacity to meet their commitments towards the customers.

Considering the fact that the national insurance market is rather infant and is not able to withstand the problems associated with liquidity and solvency, the liberalization of rules of reserves placement in the environment of liquidity crisis and volatility on international and national financial markets may have negative impact on the development of insurance market.

Credit-Rating subscribes to the opinion that the insurance market still remains relatively opaque. A major part of statements of a certain institution (including those regarding the nature of reserves placement) are confidential and the regulator is not allowed to make it public. Under these conditions the role of independent and open sources of reliable information, which may help customers to make a right decision in choosing insurance company becomes even more important.