The Concept of Creating a National Reinsurance Company

Abstract

Topic. This article presents the analysis of the desirability of introduction in Russia of institution of public reinsurance. There are considered prerequisites for the establishment of such structures in the relevant circumstances, due to both external economic situations of economic sanctions and of internal factors.
Purpose. The purpose of the study is a formulation of proposals concerning functioning and development of the national reinsurance company in the conditions of not enough high capacity and lack of transparency of the Russian insurance market.
Methodology. During the research the author has applied functional and system analysis, statistical grouping, method of critical thinking, synthesis, methods of induction and deduction, problem-oriented approach.
Results. The author analyzed the stages and directions of development of state reinsurance organizations in China, Brazil and India. In these countries, such companies occupy a strong position and successfully enter the global reinsurance market; some of them are now privatized. As a result we define possible conditions of work a national reinsurance company in Russia based on international experience and Russian specificity.
Conclusions. To mitigate the serious risks attendant to the operation of a national reinsurance company in Russia, it is necessary to adopt a number of measures, such as a clear legislative consolidation of the norms regarding the company’s activities; development of mechanisms that reduce the negative effect of the conflict of interests between state reinsurance and commercial insurance companies; introduction of an effective system of internal control of the activities of the company; and determination of development of the Russian insurance market as a priority direction in the activity of named organization.