The insurer of more than 200 Russian tour operators can be declared bankrupt

Insurance company Lloyd-City, which license was suspended by the Central Bank of Russia in June, may be declared bankrupt, the head of the Legislative Department of the Federal Tourism Agency Izo Arakhamia said to Interfax.

"We have already informed all insured by Lloyd-City tour operators and recommended them to consider other reinsurance companies", Izo Arakhamia said.

She explained that at the moment, Lloyd-City has no right to sign new contracts and increase the amount of insurance claims. "If a company is declared bankrupt, it is obliged to transfer the insurance portfolio to another firm, which will fulfill obligations to tour operators", Izo Arakhamia explained.

In June, the Central Bank of Russia has suspended the license of the insurance company Lloyd City. The report of the Central Bank said that the reason for suspending the license was non-compliance with financial stability and solvency in the formation of insurance reserves, as well as failure to comply with the order of investment of own funds and insurance reserves.

At that time, the company was the insurer of more than 270 tour operators, most of which work in the market of outbound tourism. According to experts, the share of Loyd City is about 15% of the insurance market of tour operators. "The data is constantly updated, it is difficult to say exactly how many tour operators are now insured by Lloyd City, but not less than 200", Izo Arakhamia said.