Russia toughens insurer rules

Russia's parliament has proposed tightening licensing and merger regulations for the country's 700 or so insurance companies, Reuters reports.

Vladislav Reznik, who heads the Duma lower house of parliament's committee for financial markets, has proposed requiring companies to inform the regulator when they purchase up to 1% of an insurer.

He also wants to require buyers to obtain regulatory approval prior to increasing their stakes above the 20% threshold.

The same rules have already been implemented in the banking sector.

The regulator would also have the right to revoke an insurer's licence should it provide erroneous financial data or prove to be financially unstable.