OREANDA-NEWS. On 20 July 2009 was announced, that in the conference hall of Holiday Inn Moscow, a round table was held on “Solvency Crisis: Myths, Threats, Prevention, Overcoming” organized by MIG Insurance Today.

The plenary session that preceded the round table was attended by A.P.  Koval, Head of the Federal Insurance Surveillance Service; V.Yu. Balakireva, Deputy Head of the Financial Policy Department, Ministry of Finance of Russia; heads and representatives of insurance and reinsurance companies.

During the discussion, the participants spoke about reliability and solvency of insurance companies, ability of rating agencies to identify threats to insurers’ solvency on early stages, protection of interests of clients if insurer goes bankrupt, etc.

Nikolay Gorbachev, Director of Actuarial Settlements Department of Ingosstrakh IJSC, member of the Management Board of the Guild of Insurance Actuaries, spoke at the round table. He mentioned the factors of financial stability and justified insurance tariffs and said that “it is much more efficient to assess whether tariffs (tariff policy) are appropriate based on indirect indicators: red ink position, operating costs, etc. It is possible to have a more accurate assessment of such indicators with IFRS, which is closely related to actuarial valuation. IFRS is impossible without actuaries, but the actuarial valuation must be based on IFRS. The efficiency of RAS valuation is much lower.  If it is impossible to introduce IFRS for all the insurance companies in the near future, then it must be done stepwise, for instance, first for 10 or 20 companies (that have a long track record of IFRS accounting), after that in six months or a year – for the top-rated 100 companies, and after a year – for all the others”.