OREANDA-NEWS. October 22, 2009. The Expert Council for protecting competition in the market of financial services (the section of insurance services) discussed a draft decree of the Government of the Russian Federation "General Exceptions for Certain Types of Agreements between Insurers Operating in the Same Market", revised in view of the proposals of the members of the Expert Council and the Working Group, reported the press-centre of FAS Russia.

The draft decree in question takes into consideration the comment that it only covers "horizontal" agreements, that is, between insures operating in the same market. This clarification exempts "vertical" agreements, for instance, between an insurer and reinsurers.

Following the proposal of the members of the Expert Council, the draft Decree is not applicable to the insurance and reinsurance agreements concluded between several insurers and a single reinsurer.

It also clarified the requirement for the total share of the participants of pool agreements. For instance, the draft decree specifies that the total share of the participants of such agreements can be 25% if on the market there is a competitor with its share over 20%, which is not a party to the agreement.

The draft Decree also incorporated the proposal of the Working group for special procedures for considering agreements on nuclear and terrorist risks, as well as the agreements on joint insurance activities, that are provided for by the federal laws or normative legal acts of the Government of the Russian Federation.

Upon discussion, the Expert Council endorsed the concept of the draft Decree.

Taking into considerations opinions of the meeting participants, including those of Mr Yanov, the General Director of "Sogaz" OJSC, and a representative of the National Insurer's Union, Mr Kozlov, on the need to include editorial changes, in the near future the Working Group will meet again to finalize the draft decree.