President Vladimir Putin has enacted a new partial life insurance tool, known as DSH, with implementation starting January 1, 2025. The official publication appears on the government legal information portal.
This insurance type mirrors unit-linked life insurance common in international markets. It combines traditional protection for the insured or the contract beneficiary with the potential for investment income. A portion of the paid premium is allocated to selected investment units, allowing returns that reflect market performance.
Under the law, the insured in a DSH agreement will hold investment shares in open-end or closed-end investment funds. This structure is intended to shield the policyholder from losses caused by the insolvency of the insurance company or the asset-managing firm that holds those units. The insured also remains the beneficiary under the DSH contract.
In the event of a claim, the beneficiary receives the insured amount plus any monetary compensation related to the redemption of the investment fund shares.
The statute also outlines the conditions surrounding the bankruptcy of an insurance organization operating a trust management service for investment funds and the winding down of the funds managed by that company.
Public questions in Russia have focused on who bears the cost of elderly care insurance, while others have asked how the insurance pension might change when someone returns to work.