Over 40% Ukrainian insurance companies won't meet NBU's new capital requirements, to be given 6 months to rectify it

MOSCOW. Dec 22 (Interfax) - Over 40 % insurance companies in Ukraine will not be able to meet the new requirements of the National Bank of Ukraine (NBU), in particular, on capital and solvency, after they enter into effect on January 1, 2024, Ukrainian media outlets quoted NBU First Deputy Governor Yekaterina Rozhkova as saying at a press briefing.

The strengthening of the requirements is envisaged by the new bill on insurance, and insurance companies will be given six months to bring their activities in compliance with them, Rozhkova said.

"In our view, six months will be quite enough to bring their activities in compliance with the new requirements," she said.

NBU is planning to assess the quality of insurers' assets next year to be confident that companies reflect their cost in their balance sheets correctly, she said.

All market participants are currently facing challenges dealing, in the first place, with ensuring the ceaseless operation of services, which is very important for the financial stability, she said. "This is why, NBU is planning to develop the methodology and start assessing risks of third parties next year," Rozhkova said.

It would involve assessing risks of companies providing key services, such as software, communications and so on, which enable the financial sector to operate without interruptions, display all operations appropriately and take cyber security and personal data protection measures, to participants in the financial market, she said.

As reported, as of December 1, 2023, 101 insurance companies are registered in Ukraine, 95 of them provide risk insurance and 12 life insurance.