STATISTICS:

UKRAINE: Some 55% of Ukrainian insurers' assets do not comply with the current regulations

The preliminary results of the Ukrainian insurance market in 2016 show that 55% of insurance companies' assets, worth over UAH 30 billion, have a low liquidity and are hard to sell, generating a low financial income, Oleksandr ZALETOV, member of the national market watchdog told Interfax-Ukraine.

He said that the 2016 figures also display some positive trends proving that insurance companies' assets quality is improving in many respects thaks to implementing the first phase of reform under the resolution on obligatory criteria and requirements for asset adequacy, diversification and quality, since May 2016.

The assets' reallocation provided for a transition from "unreliable" (corporate securities, financial instruments for which it is impossible to determine the fair cost) to "low risk" assets (bank deposits made with trustworthy institutions, government securities).

Yet, the analysis of the year results showed that a large part of assets is placed in doubtful financial instruments, such as bills of exchanges and corporate rights to blank check companies. "This leads to the non-observation of the insurance agreement conditions by insurers both for payments in claims and the term of payment," Zaletov said.

The market authority's representative also revealed that for the second phase of the assests' reform process the commission intends to remove from the assets allowed cathegories the following classes: assets burdened with liabilities taken into account on off-balance sheet accounts (collateral, guarantees, liabilities); assets of registered and/or located on the temporarily occupied territory of Ukraine or on the territories where Ukrainian authorities cannot fulfill their duties and located on the contact line.

It is also proposed to remove claims to individuals and companies on which the National Security and Defense Council (NSDC) of Ukraine applied sanctions and banned from using or selling assets of these persons or their property, apart from cases when the restriction is imposed aiming at making insurers to observe their liabilities.

The commission proposes to expand the list of low risk assets thanks to the inclusion of claims to nonresident reinsurers under the reinsurance agreements signed with nuclear unit operators for damage caused due to nuclear incident, obligatory civil aviation insurance and under Green Card agreements if the reinsurers are not residents of the aggressor state.

In addition, the commission proposes to expand the acceptable assets by including undue bills receivable under the insurance and/or reinsurance agreements, bills receivable on accrued bank deposit interests and contributions of insurers which are members of financial groups to charter capitals of other insurers - members of the groups in the amount set in Ukrainian law if the financial group observes the requirements to regulatory capital.

Source: Interfax-Ukraine

Related articles

Ukraine: Winners of prestigious insurance awards 2017 were named

The champions of the Ukrainian insurance market were awarded at the XIth Edition of All-Ukrainian Competition "Insurance Company of 2017 year", organized by the Club Banker in partnership with the League of Insurance Organizations of Ukraine (LIOU) on 14 November 2017 in Kiev.

2017-11-23

ON THE MOVE

TOP EVENT

"Insurance and Pensions reloaded" - the 7th EIOPA Annual Conference

The 7th EIOPA Annual Conference takes place today in Frankfurt am Main, Germany. A review of the current supervisory covergence issues and of the prospects of the Pan European Personal Pension Product are on the event's agenda, together with analyzing the ways in which regulation may enable innovation.

22.11.2017

photodune-3834701-laughing-girl-xs

"IIF2017 - Insurance in the DIGITAL World" Conference took place in Vienna

"IIF2017 - Insurance in the DIGITAL World" conference brought together in Vienna well-known insurance professionals from all over the world who analyzed the latest digital trends in the industry, taking into account the fast digitalization of the financial services providers' world, in particular in the insurance field, which is creating both huge opportunities and strong challenges for the players.

14.11.2017

photodune-3834701-laughing-girl-xs

Croatian Insurance Days Live

On 9 November has started in Opatija, Croatia, the 2017 edition of the Croatian Insurance Days Conference, the traditional meeting of the Croatian insurance top professionals with their European peers. XPRIMM Publications are supporting the event as Media Partners.

09.11.2017

photodune-3834701-laughing-girl-xs

The 2017 Baden Baden Meeting: Short recap

The Baden-Baden meeting, one of the key events in the reinsurance calendar, has just set the final point of this year's edition. XPRIMM Publications have reported from the meeting's premises. Let's recap!

26.10.2017

Baden Baden Headlines 3: CEE insurance markets are attractive for reinsurers

Central and Eastern Europe insurance markets are an important source of business for Lloyds, total premium income from this region increasing by EUR 64 million since 2010, pointed out the Lloyd's representative in a seminar dedicated to CEE insurance markets: "We are seeing strong growth from Czech Rep, Poland, Slovakia and Ukraine. At the same time are some contractions from Russia, Bulgaria, Romania and Hungary due to challenging trading conditions as political implications and other sanctions".

25.10.2017

Baden Baden Headlines 2: cyber insurance market set to grow under regulatory presure; nat cat events more frequent, but losses per event are decreasing

Asian insurance market, especially the Indian market - are considered to be "the new El-Dorado" of the global re/insurance market, with rapidly expanding markets and an dynamic environment: "Indian P&C re/insurance markets are expected to grow at a pace of 15% per annum", according  to Victor PEIGNET, CEO, Global P&C, SCOR SE. The French -based reinsurer setted-up its Indian branch in 2016, after the authorisation from the local market authority - IRDAI. India's re/insurance market has become more attractive for global companies following the relaxation of regulatory requirements, and lately, "big names" in the industry entered the market by opening branches: GEN Re, SCOR, Lloyd's of London, MUNICH Re, SWISS Re, Reinsurance Group of America (RGA), HANNOVER Re, XL Catlin and others.

24.10.2017

BB Headlines: Rates are settled to increase following Q3 events

The main effect after the Q3 nat cat bill of over USD 100 billion: Global reinsures said - the "discounts and reductions in tariffs era" especially in European reinsurance market for the January 2018 renewals, will come to end. At the same time, some reinsurers might disappear and there are likely to be more mergers, acquisitions and run-offs processes.

23.10.2017

See all