The Adoption of a Law “On Insurance”

by Olha Povaliaieva
Tuesday, November 23, 2021
The Adoption of a Law “On Insurance”

According to the explanatory note to the draft, the new law is intended to replace the current law of Ukraine, "On Insurance," adopted 25 years ago, which now takes into account the latest trends in global financial infrastructure

The law also provides for the National Bank of Ukraine to be entrusted with regulatory powers in the field of the insurance market.

In general, the draft law proposes to define all the basic concepts in the field of insurance, update the approach to licensing insurers, introduce a new procedure for obtaining a single license to conduct insurance activities with the possibility of its narrowing and expansion.

It is also proposed to provide for the possibility of licensing the insurer as a professional reinsurer, improving the requirements for owners of significant participation of the insurer, introducing updated requirements to confirm the proper financial /" rel="dofollow">property status and business reputation founders and owners of the insurer. In particular, the founders and owners of the insurer must prove that their condition and reputation meet the established requirements.

In addition, it is proposed to give the National Bank the right to demand termination of participation in the insurer, to impose a ban on increasing participation in the insurer and alienation of shares, as well as to agree on agreements for the sale of shares in insurance companies with the regulator.

There is also a procedure for forcible withdrawal of the insurer from the market by the decision of the National Bank of Ukraine.

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