OREANDA-NEWS. On 06 July 2009 was announced, that in Moscow, there was a round table “Insurance Dumping and Countermeasures”, organized by the All-Russian Union of Insurers and Information and Consulting Group Business Service. Ingosstrakh and SOGAZ co-sponsored the event.

The meeting was attended by Andrey Kigim, President of the All-Russian Union of Insurers, Vladimir Novikov, Chairman of the Management Board, Actuaries Guild, Alexey Yanin, Head of Division for Insurance Companies Rating, Expert RA, heads of Russia’s top insurance companies, journalists.

The participants spoke about special urgency of the problem of insurance dumping today, and discussed ways to address it, in particular, by means of reinforcing the insurance market regulator’s control, creation of self-financing organizations, introducing IFRS and independent actuarial audit, etc.

In his speech, Alexander Grigoriev, General Director of Ingosstrakh IJSC, said that the main threat for the insurance market was coming from the fact that dumping penetrated the top twenty of the Russian insurance companies. Previously, one could assume that unreasonably low tariffs would be introduced by small and troubled companies in an attempt to attract clients, however today also leading insurers do this. Because of this, by the end of the year such companies will have liquidity problems and, as a result, this will shatter not only the insurance market, but the financial market as a whole. Dumping is one of the factors that aggravate crisis implications in the insurance sector, therefore serious measures are required to resist this dangerous trend.