General requirements for insurers

General requirements for insurers under bank risk insurance agreements with the Eurasian Development Bank

1. An insurer is a legal entity incorporated/registered and existing for not less than 10 years in the territory of a Bank’s member state, which is authorised to engage in insurance activities in the financial/banking sphere based on a valid licence issued by an authorised agency/regulator in accordance with the laws of the Bank’s member state.

2. Insurers from a Bank’s member state must comply, as at the date of the application, with the Bank’s requirements for minimum ratings:

  • for insurers from the Russian Federation: an insurer financial strength rating of not lower than BB+/Ba1 assigned by one or more international rating agencies*, or not lower than ruAAA/AAA(RU) on the national scale assigned by a national rating agency included in the register of the Central Bank of the Russian Federation; 
  • for insurers from the Republic of Kazakhstan: an insurer financial strength rating of not lower than B+/B1 assigned by one or more international rating agencies*;
  • for insurers from the Republic of Belarus: an insurer financial strength rating of not lower than B-/B3 assigned by one or more international rating agencies*;
  • for insurers from the Republic of Armenia, the Kyrgyz Republic and the Republic of Tajikistan: no rating requirements apply, provided that confirmation of reinsurance is provided for at least 98% of risks with an insurer/reinsurer having a rating of not lower than BB+/BA1 on the international scale*, and/or not lower than ruAAA/AAA(RU) on the national scale.

3. The insurer is not undergoing any monitoring, financial rehabilitation or temporary administration procedures, or subject to any other similar actions or measures, and no such procedures have been initiated.

4. The insurer has not had its licence suspended by an authorised agency/regulator over the recent two years and has not infringed any prudential/economic regulations approved by an authorised agency/regulator over twelve months preceding the date of consideration.

5. There are no material outstanding disputes, including legal actions or substantiated claims concerning the insurer’s obligations before the Bank and/or in a Bank-funded project.

Disclaimer

All the above requirements are general requirements and insurers’ conformance with them should not be regarded as obliging the Bank to cooperate.

In making a decision on whether to cooperate, the Bank will use its internal procedures, which may require that an insurer submit additional documents, and will review information about the activities of the insurer, including publicly available information.




* International scale ratings are determined based on long-term credit ratings and insurer financial strength ratings assigned by the international rating agencies S&P Global Ratings, Fitch Ratings and Moody’s Investors Service.

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