Experts discussed insurance of Russian construction projects abroad

12 december 2017

The Analytical Center has brought together experts to gather and summarize proposals for the consolidated plan of the priority project regarding Systemic Measures to Develop International Cooperation and Exports. The expert meeting was held in conjunction with the Russian exports center. During the event, the issues were discussed related to insurance of construction, engineering and design projects abroad.

The experts agreed that there were several tools available that could be used to support Russian investors abroad and that it was important to create an effective mechanism for using them.

Executive Director for insurance of corporate clients at Sogaz JSC Dmitry Malyshev believes Russia should permit the issuance of insurance bonds, which have long been a common practice abroad. The expert is also of the opinion that insurers can help our investors enter foreign construction markets through the reinsurance mechanism, since almost all countries have restrictions on the licensing of foreign insurance companies. "Another mechanism that could be used is the return of foreign currency revenue, just a few minor amendments to the legislation are required for to allow all insurers to exploit it," Mr. Malyshev added.

Irina Kuzma, Strategic Development Department Head in Federal Autonomous Organization RosKapStroy, believes the biggest problem is that insurance companies still don't have an insurance product that could meet the needs of prospective clients. Insurers reply that they can't insure risks they can't assess.

Vladimir Malakhov, Executive Director of the National Association of Consulting Engineers in construction explained that there were several types of insurance risks. "The entrepreneurial risks are not used to be insured and we need to develop this institution", Mr. Malakhov said, "but they have nothing to do with insuring construction and installation risks." The expert believes that Russia needs to develop insurance claim adjusting in order to help our construction and engineering companies compete abroad.

Experts also shared other opinions and proposals.