4 Apr 2024 11:22

NBU plans to update requirements for non-resident insurers, reinsurers in Ukraine

MOSCOW. April 4 (Interfax) - The National Bank of Ukraine (NBU) has drawn up a draft provision on requirements for non-resident insurer offering insurance services in Ukrainian territory and has proposed this document for consideration, Ukrainian media said, citing the regulator's website.

The financial reliability rating of a non-resident insurer on the date of signing an insurance (reinsurance) contract should not be lower than the corresponding rating assigned by international rating agencies: B+ (A.M. Best, U.S.), Baa3 (Moody's Investors Services, U.S.), BBB- (Standard & Poor's, U.S.), and BBB- (Fitch Ratings, UK), according to the draft document.

Under the draft, a non-resident insurer lacking the aforementioned rating may still offer insurance services in Ukraine if the company meets the requirements of Part 2 of Article 6 of Ukraine's insurance law and a relevant operations record of at least three years.

The new rules will apply both to non-resident insurers and non-resident reinsurers with which insurance companies and insurance brokers have a right to establish contractual relations, the NBU said.

If non-resident insurers (reinsurers) fulfill the requirements spelled out in the draft provision, they will be entitled to taxation on special terms.

After the draft document is endorsed, the July 11, 2013 resolution (with amendments) of the National Commission for State Regulation of Financial Service Markets will cease to be valid.

The NBU will be accepting comments and suggestions to the draft through April 25, 2024.