The Ukrainian insurance market is actively developing due to substantial investments into the insurance business made in recent years. In 2005, the total amount of insurance contributions in Ukraine amounted to UAH 12 852 million (approximately Euro 2 billion), which is four times more than in 2001. The gross amount of insurance payments in 2005 amounted to 14,7%. The most significant portion of insurance contributions relate to insurance of property and financial risks.

Despite the capitalization tendency at the Ukrainian insurance market (for instance, recently the threshold of authorized capital of insurance has been raised to Euro 1 million, and for the life insurance companies – to Euro 1,5 million), the number of insurance companies continues to grow. As of the beginning of 2006, there were 298 of insurance companies operating in Ukraine.

Further insurance market development is being forecast. The main prerequisites of such development are the country's economic development in general, recent changes in the social security and pension legislation and compulsory insurance of drivers’ liability. According to the forecasts of experts, only 10 % of risks are insured in Ukraine.

Konnov & Sozanovsky's lawyers advise clients-insurance companies on a broad scope of issues. Given the foreign investments in this market, we are servicing the purchase of Ukrainian insurance companies by foreign investors and the creation of new insurance companies. The scope of services we provide to such clients is not limited to the standard one, which includes registration of the company, obtaining of necessary permits and licenses, advising on current legal issues. We developed a complex approach to clients' business needs, elaborating a scheme of business for the client in Ukraine as well as abroad. Our lawyers advise on tax planning, protection of business from the third parties illegal actions, elaboration of inner structure of the company. The professional approach and experience of Konnov & Sozanovsky's lawyers enable them to resolve any legal issues arising in connection with business activity of the Ukrainian insurance companies – clients of our firm.

The Russian Federation plans to enter into the WTO, and it anticipates a new quality relations with the world business community. Not every domestic businessman understands and cordially welcomes the opening of the doors for the foreign business. Thus, lots of discussions were generated by foreign banks’ appearance in Russia. Like some bankers, considering it intolerable, the insurance companies are also against the entry of foreign competitors to the Russian market.

The issue of the activities’ regulation of foreign insurers and insurance companies with the foreign capital participation in Russia was discussed in connection with the appearance of the first insurance companies with the foreign capital share (Zurich-Rus, AIG-Russia) yet before adoption of the legal acts in this sphere. It acquiredl legislative interpretation in the regular version of the Law “On Organization of the Insurance Business of the Russian Federation” from 1999. Its urgency increased with the appearance of the next version of the same law from 10.12.2003 #172-FZ which made substantial changes concerning foreigners’ admission into the Russian insurance market. Relaxations of the restrictions were made both in connection with the necessity of the Russian Federation liabilities fulfillment of international agreements, as well as with the threshold of the country’s entry into the WTO. However, the issue of the national insurance market readiness for such arrangements is thus far rather critical. Domestic insurers, as well as state bodies and professional experts are preoccupied with its consideration.

In the course of the last several years Russian insurance market actively has developed mainly due to the intense capital inflow, including foreign.

Insurance agencies are associated companies in relation to foreign investors (key organizations) or possessing a share of the foreign investors in its share capital of more than 49% can not carry out the insurance of the personal insurance objects, obligatory insurance, obligatory state insurance, and property insurance in the Russian Federation.

The minimum size of the insurer’s authorized capital is determined on the basis of the basic size of the authorized capital equal to 30 million rubles and coefficients, established for particular types of insurance.

Further development of the insurance market in Russian is stipulated by the economic development of the country in general, as well as by the range of the other objective causes. Introduction of compulsory civil liability insurance of the vehicles owners and of the reform in the system of the pension security positively affect market growth.

The high professional level of Konnov & Sozanovsky’s lawyers allows solving efficiently the whole gamutof legal issues arising in the work of the major Russian insurance companies. Taking into consideration foreign investments inflow to this sector, we render legal assistance in Russian insurance companies’ acquisition, and also in the establishment of new companies. The scope of services we provide is not limited to the standard one, which includes registration of the company, obtaining of the necessary permits and licenses, which are required for the insurance activity carrying out, advising on current legal issues. Our practice assumes a complex approach to the clients’ business structure establishment within the Russian territory and abroad. Our lawyers render services in tax planning of the clients’ activity, protection of the business from the third parties’ illegal actions, and development of the internal structure of a company.

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