In the Financial Supervision Authority, it is noted that in the current system, each insurance company is responsible for payouts independently, which significantly increases the risk of bankruptcy in the event of major natural disasters such as earthquakes or mudslides.
In this regard, the agency emphasizes the need to develop a mechanism that will allow risks to be distributed among participants in the insurance market, increase the coverage of the population with insurance, and reduce dependence on budget compensations in emergency situations.
One of the proposed changes includes clarifying the list of insured events that should be specified in the legislation on mandatory housing insurance.
| Current Version | Proposals from the Financial Supervision Authority |
| Insured Events | Insured Events |
| 1. Insured events include: | 1. Insured events include: |
| 1) fire (impact of flame, smoke, high temperature), even if it occurred outside the insured property; | 1) fire (impact of flame, smoke, high temperature), even if it occurred outside the insured property; |
| 2) flooding resulting from lawful actions to extinguish a fire; | 2) flooding resulting from lawful actions to extinguish a fire; |
| 3) natural disasters: | 3) natural disasters: |
| a) earthquake – vibrations of the earth's surface and underground shocks of magnitude 6 and above, caused by sudden shifts in the earth's crust; | a) earthquake – vibrations of the earth's surface and underground shocks of magnitude 5 and above, caused by sudden shifts in the earth's crust; |
| b) mudflow – a flow containing a large amount of mineral particles and rock debris, suddenly occurring in the basins of mountain rivers; | b) mudflow – a flow containing a large amount of mineral particles and rock debris, suddenly occurring in the basins of mountain rivers; |
| c) flood – a short-term and non-periodic rise in water level in a river due to melting snow or heavy precipitation; | c) flood – a short-term and non-periodic rise in water level in a river due to melting snow or heavy precipitation; |
| d) avalanche – rapid movement of snow or ice from mountain slopes with destructive force; | d) massive ground movements (landslides) – processes related to the movement of earth masses; |
| e) rockfall – the falling of rock masses under the influence of gravity; | e) strong wind – wind speed during gusts of 20 m/s and above; |
| f) landslide – movement of rock masses under the influence of gravity; | f) heavy snowfall – intense snowfall of 150 mm or more within 12 hours; |
| g) strong wind – wind speed during gusts of 25 m/s and above; | g) hail – atmospheric precipitation in the form of ice particles during the warm season; |
| h) heavy snowfall – intense snowfall of 200 mm or more within 12 hours; | h) lightning strike – direct lightning strike on a building causing damage; |
| i) blizzard – snow carried by strong winds for more than 12 hours; | 4) dismantling and relocating insured housing to a safe place by decision of competent authorities in case of threat of destruction due to a natural disaster. |
| j) hail – atmospheric precipitation in the form of dense ice stones with a diameter of 20 mm or more; | |
| k) lightning strike – lightning hitting a residential building with subsequent damage; | |
| 4) dismantling and relocating insured residential premises to a safe zone by decision of the authorized state body due to the declaration of a threat of damage (destruction) of the residential premises as a result of a natural disaster. |
