«Malakut plans to steer clear of broker bodies», — «Insurance Day», 18.03.2009

Dmitry Beygul

Malakut plans to steer clear of broker bodies

Russian broker Malakut has decided to keep its distance from broker’s association in the country for the time being, writes James Brewer.

Dmitry Beygul, general director of Malakut, told Insurance Day: «As far as we know there are two broker’s associations in Russia established in 2002 and competing with each other. We know a little about their activity. To our regret, both associations have no real power and they could not be considered as market drivers. Both associations still have not implemented quite reasonable standards for the members, such as minimum paid-up capital, reliable professional liability cover, proper reporting, etc. At the moment we prefer to stay out of these associations and keep our own standards based on best international market practices.»

The Moscow-based broking house has made a point of buying its own professional liability policy, which it recently renewed for 2009 with major insurer Ingosstrakh, whith a liability limit of € 10m ($ 13m) each instance, and a limit of € 6.5m per occurrence for the six years from January 2003.

Malakut Chairman, Andrey Dolgopolov, said that although the situation on world markets is still very complex, it was decided not to decrease the volume of the coverage, keeping it at the level of the largest European companies.

Article original