‘The need for the gradual growth of the insurance companies’ capital was emphasized in the existing legislation long time ago; the insurers who find themselves unable to raise their capital are driven out of the market, and their leave remains largely unheeded,’ says Valeriy Poroshin, Deputy Director of Ingosstrakh Insurance Company in Yekaterinburg.

‘Increasing the company’s authorized capital is crucial to enhancing its stability, reliability, and solvency. I believe the first companies to be affected by this will be the local, so-called ‘pocket’ companies set up by large industrial enterprises for their own needs (salary-paying schemes mostly). The situation is changing,’ Mr Poroshin says.