RESOLUTION OF THE MINISTRY OF FINANCE OF THE REPUBLIC OF BELARUS

of June 20, 2014 No. 38

About standard rates of safe functioning for insurance companies

Based on the paragraph of third subitem 2.5 of Item 2 of article 12 of the Law of the Republic of Belarus of January 5, 2024 No. 344-Z "About insurance activity" and Item 10 of the Regulations on the Ministry of Finance of the Republic of Belarus approved by the resolution of Council of Ministers of the Republic of Belarus of October 31, 2001 No. 1585, the Ministry of Finance of the Republic of Belarus DECIDES:

1. Establish standard rates of safe functioning for insurance companies according to appendix.

2. Approve the Instruction about procedure of payments, applications and estimates of accomplishment of standard rates of safe functioning for insurance companies it (is applied).

3. This resolution becomes effective after its official publication.

Appendix

to the Resolution of the Ministry of Finance of the Republic of Belarus of June 20, 2014 No. 38

Standard rates of safe functioning for insurance companies

1. For the insurance companies performing types of insurance, not belonging to life insurance, and the insurance companies performing insurance activity only on reinsurance:

1.1. the standard rate characterizing unprofitability of insurance activity;

1.2. No. 77 is excluded according to the Resolution of the Ministry of Finance of the Republic of Belarus of 19.12.2019

1.3. standard rate of sufficiency of reserves of losses;

1.4. standard rate of sufficiency of equity;

1.5. standard rate of current liquidity;

1.6. the standard rate characterizing efficiency of financial and economic activities.

2. For the insurance companies performing types of insurance, belonging to life insurance:

2.1. standard rate of sufficiency of equity;

2.2. standard rate of covering of insurance reserves;

2.3. the standard rate characterizing efficiency of financial and economic activities.

Approved by the Resolution of the Ministry of Finance of the Republic of Belarus of June 20, 2014 No. 38

The instruction about procedure of payments, applications and estimates of accomplishment of standard rates of safe functioning for insurance companies

Chapter 1. General provisions

1. This Instruction determines procedure of payments, applications and estimates of accomplishment of standard rates of safe functioning for insurance companies.

2. Standard rates of safe functioning for insurance companies are calculated quarterly on reporting date in case of creation of accounting records.

Calculation of standard rates of safe functioning is made based on the data of accounting and forms of accounting records of insurance company constituted according to the resolution of the Ministry of Finance of the Republic of Belarus of January 11, 2010 No. 2 "About conducting financial accounting, creation and submission of accounting records by insurance companies".

Values of standard rates of safe functioning are rounded to within two signs after comma.

Chapter 2. The standard rate characterizing unprofitability of insurance activity

3. The standard rate characterizing unprofitability of insurance activity reflects overall effectiveness of insurance activity and financial position of insurance company.

Calculation of the standard rate characterizing unprofitability of insurance activity is made without the income and expenses on compulsory insurance from labor accidents and occupational diseases, to compulsory insurance with the state support of harvest of crops, the cattle and bird, to obligatory civil liability insurance of legal entities and individual entrepreneurs for the harm done by the activities connected with operation of separate objects, to compulsory national insurance.

4. The standard rate characterizing unprofitability of insurance activity is calculated as the amount of cost ratio (expenses) and coefficient of unprofitability and characterizes the expense level of insurance company and level of insurance payments in earned premium.

Calculation of the standard rate characterizing unprofitability of insurance activity is made both taking into account, and without the overcautious person's share in general on the insurance portfolio of insurance company, on each type of insurance.

The standard rate characterizing unprofitability of insurance activity taking into account the overcautious person's share (Kkomb 1) is calculated as the amount of cost ratio (expenses) taking into account the overcautious person's share (Kzatr 1) and unprofitability coefficient taking into account the overcautious person's share (Ku 1) on the following formula:

(1)

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