The amendments are aimed at changing requirements towards the financial stability of insurance companies, establishing single principles of licensing and improving the control of such activities.

The document says that the minimal size of the authorized capital of an insurance company should be determined in accordance with the basic size of its authorized capital, established at RUR 30bn (about $1bn) and some indexes. The bill defines the objects of insurance, the participants of the insurance market and the types of insurance payments. It also contains provisions on the licensing of insurers, the requirements towards the heads of companies, chief accountants and insurers.

Russian insurers did not support the initial draft of the bill, because it would open the Russian insurance market to European companies. The government and the State Duma met their concerns. The total share of foreign capital on the Russian insurance market cannot exceed 15 percent of the total authorized capital of Russian companies. And those insurance companies in which foreigners have more than 49 percent, are banned from life insurance and compulsory insurance.

The bill was passed by a vote of 250 to 75, with one abstention. It will come into effect after it has been approved by the Federal Council and signed by the President.