The Central Bank of Russia and the Federal Antimonopoly Service of Russia (FAS Russia) issued an information letter reminding credit institutions that borrowers may independently choose an insurer that meets a bank’s criteria and may change insurers at any time during the term of a loan agreement. It states that banks should not push borrowers toward a particular insurer or provide preferences, including through a lower interest rate. Under the letter, banks should notify clients within seven business days of receiving documents whether the submitted policy is acceptable or provide reasons for refusal. If a refusal leads to an increase in the loan interest rate, the borrower may submit another policy and, if it meets the bank’s requirements, the interest rate is recommended to be reduced back to the previous level. The guidance also calls for simplifying insurer accreditation, including automatically accepting insurers with credit ratings, while allowing banks to set their own rating scales subject to a cut-off no higher than A-.
Central Bank of Russia 2026-02-26
Central Bank of Russia and Federal Antimonopoly Service issue guidance against insurer steering in loan insurance and cap accreditation cut-offs at A-
The Central Bank of Russia and the Federal Antimonopoly Service reminded credit institutions that borrowers can choose or change insurers during a loan term without bank influence. Banks must notify clients within seven business days if a policy is acceptable and simplify insurer accreditation, accepting those with credit ratings up to A-. If refusal leads to a higher interest rate, borrowers can submit another policy to potentially restore the original rate.