Privatization of Insurance Companies and Arrival of Foreign Capital

Deriving from the fact that insuring is an economic activity, the Insurance Companies Act, in effect since Nov. 13, 1994, regulates only those aspects which are specific for insurance business and are not sufficiently covered by the Law on Companies and other legislation. As privatization of insurance companies was excluded from the Insurance Companies Act, the Finance Ministry has prepared the Insurance Companies Privatization Bill, which according to Jurij Gorišek, director of the National Insurance Supervision Administration (NISA), is aimed primarily at monitoring market and capital rehabilitation of insurance companies. Under the current bill, the state would temporarily take over the public capital, using it when necessary to cover deficits in guarantee funds of insurance companies undergoing capital accumulation.

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