The Central Bank proposed to equate the insurance companies with pension funds
Photo: TASS/Donat Sorokin
Association of insurers of life (aszh) proposes to allow insurance companies to participate in pension reform, the draft of which was recently presented to the Central Bank and the Finance Ministry. The insurers intend to develop in Russia a voluntary pension system. This “Izvestia” said the head of the Association Alexander Zaretsky.
Insurance company representatives are requested to establish a legislative and regulatory framework for the development of programs of investment life insurance the type of unit-linked (the direction of combining life insurance with investments) and higher tax benefits. These proposals HOAs intends to submit to the Central Bank and to discuss with the regulator in the coming months.
According to the head of HOAs, with the advent of the pension reform now is a good time to radically update the strategy of development of the life insurance market, making significant changes.
We always wanted to participate in the construction of the voluntary pension system in Russia. It is now obvious that the government’s emphasis is on the voluntary system, and our ideas are becoming more relevant, — told “Izvestia” Alexander Zaretsky.
Chapter HOAs believes that in the study require three main directions: participation of life insurers in pension reform, further development of investment life insurance and tax benefits.
According to the Association, for the last 2-3 years the direction of investment life insurance is a powerhouse not only life insurance (where its share reaches 50%), but of the whole of the insurance market, ensuring its growth. However, according to market participants, without the development of its infrastructure at the legislative level, further market growth will be much lower.
— You must enter a separate form of investment insurance — in draft form until approval of the Central Bank we call it “equity life insurance”. It requires a special regulation — similar to the adopted in other countries. If you view a new chart of accounts which is valid for insurance companies from 1 January 2017, in which investment life insurance is described as a separate species, but nowhere else will you find this formulation. It is necessary to organize special regulatory regime by amending the law “On organization of insurance business”, — Alexander Zaretsky.
Another problem is insufficient tax incentives. On the one hand, participants in the programs investment life insurance have the right to access social and tax deduction on personal income tax in the amount of base to 120 thousand rubles a year, which includes deductions for education and healthcare, even though the strip to generate tax deductions to owners of individual investment accounts established at the level of 400 thousand rubles a year. On the other hand, many companies participate in programs of voluntary insurance for their employees, but continue in full without benefits to pay contributions to the mandatory medical insurance Fund and social insurance.
— We propose to introduce a single tax regime for pension funds and insurance companies. Now, when the employer pays for the pension program employees 1,000 rubles through the NPF, he makes no additional contributions, and if after the insurer’s life, he is obliged to transfer 28% of the amount in the state Pension Fund. In fact, it puts us at a disadvantage, although the participation of life insurers in the pension system around the world helps to generate long-term money in the economy. We are already involved in voluntary pensions, but the tax regime is not yet in our favor. We would like to participate more actively and on equal terms — said Zaretsky.
Market participants interviewed by “Izvestia”, the positive evaluation of proposals HOAs.
— Initiative HOAs are very correct and really aggregates of the proposal the key members of the life insurance market. The approach of tax incentives at least to the rates, which are subject to individual investment accounts, will allow to expand the circle of interested in life insurance the Russians, equalize opportunities of insurance companies with other financial markets. And also allow life insurers to offer customers the most convenient, and most importantly, profitable products. The possibility of using electronic signatures will make life insurance more accessible and extremely convenient, allowing at any time to change the terms of existing contracts or enter into new, — said official representative of “AlfaStrakhovanie” Yuri Nahaychuk.
From life insurance have an advantage over the NPF, which is medical insurance.
We are sure that we will include in the new system in full-fledged participants. Our retirement program is similar in ideology to the products of the NPF, but more interesting than the programme funds. Pension insurance is socially oriented and aims not only to accumulation, but to protect against unforeseen life circumstances related to the life and health of the insured. It would be wrong to leave life insurance out of the new pension system, — said General Director of “PPF life Insurance” Sergey Perelygin.
In September, the Ministry of Finance and the Central Bank announced plans to reform the pension system in Russia. The main innovation — 6% of wages, which now amount to a cumulative part of the pension will be sent to the distribution part (for the payment of current pensioners). However, citizens are asked and voluntarily save for retirement, independently regulating the amount of the additional deductions from wages.