Effective from 1 January 2010, the companies, operating in general insurance sector, should have the minimum size of the equity capital equivalent to 750,000 euros. Life insurance companies’ the capital requirement is set at the minimum of 1 million euros, and for those operating in the sector of mandatory insurance – 1.5 million euros. Reinsurance companies will bring their capital to 4 million euros.

The existing insurance companies will have to meet the requirements outlined above by 1 January 2010.

The resolution set new procedure on participation of insurance firms in the stock market as investment mediators without any additional licenses.

Starting 1 June 2008, the legal entities and individuals will be exempted from income tax on dividends from insurance companies for the period of three years. The same benefit is provided to insurance companies for the income earned in the form of dividends and interests provided these funds (saved on taxes) are appropriated for the creation of territorial subdivisions, expansion of the agents’ networks in the regions, primarily in rural areas, and the development of material-technical base.