Drafting of the draft Law on OMTPL has begun

On October 11, on the basis of the Committee on Finance, Tax and Customs Policy of the Verkhovna Rada of Ukraine, with the participation of Danylo Hetmantsev and Iryna Allahverdiyeva, the first meeting of the working group was held to develop the new version of the Law on Motor Insurance, which is intended to implement the Motor Insurance Directive.

The bill envisages a gradual increase of insurance sums to European standards, improvement of insurance settlement conditions, reform of corporate management of MTSU, direct settlement of losses, introduction of free pricing. Also, according to the draft Law, payments for damaged vehicles will be made without taking into account wear and tear of parts.

NASU supports the adoption of the mentioned draft law as soon as possible and takes a constructive position on this issue. Presentation materials on the innovations proposed in the new version of the Law are provided by the NBU at the link.

Insurance companies can join the regime of joint customs transit

On October 1, 2022, Ukraine joined the Convention on Common Transit (“customs visa-free”) and the possibility of international movement of goods with 35 other participating countries under one transit document using the common electronic system The New Computerized Transit System (NCTS) was opened for business operates in the European Union and other countries. Ukraine became a country where honest business began to enjoy all the advantages of NCTS during foreign economic activity under equal competitive conditions with partner countries.

“NCTS is an IT product that makes it possible to establish an exchange of information on the stages of customs clearance of goods using electronic messages in real time and to increase the efficiency of using the risk analysis system.”

First of all, through the NCTS system, Ukrainian companies will be able to use a single declaration for the movement of goods between participating states according to the principle of “one vehicle – one declaration – one guarantee” (with EU countries, as well as with Great Britain, Turkey, Serbia, North Macedonia, Iceland , Norway, Liechtenstein and Switzerland).

As part of the introduction of the new legislation, the Customs Platform: Ukraine-EU 2022 forum was held on October 5, dedicated to the launch of the “customs visa waiver”, which brought together representatives of the legislative and executive authorities, business and business communities. The guests of the event representing the business community were the National Association of Insurers of Ukraine, the American Chamber of Commerce in Ukraine, the European Business Association, the Chamber of Commerce and Industry of Ukraine and the Independent Association of Banks of Ukraine.

During the event, the Minister of Finance of Ukraine, Serhiy Marchenko, emphasized that “customs visa-free” is an impetus for the provision of financial services, providing access to clients in 36 countries of the world for the provision of financial guarantees. Insurance companies can join the regime of joint customs transit, having received, in accordance with the law, the status of a guarantor, which will allow to issue a financial guarantee to Ukrainian exporters, which is mandatory for all groups of goods.

Ukraine continues to defend its territory and is getting closer to victory. The insurance market also faced the challenges of the war period, but continues to make efforts to protect the state on the economic front.

According to the National Bank of Ukraine, in the first half of 2022, the total amount of assets of insurers compared to the beginning of the year (before the full-scale invasion) almost did not change and amounted to UAH 65.7 billion, while UAH 48 billion. belongs to NASU members. Neither the size of eligible assets nor the volume of formed insurance reserves (UAH 36.6 billion) has decreased. During the martial law, insurers not only did not reduce, but also increased the amount of liquid assets – from UAH 14.9 billion to UAH 17.2 billion.

In particular, for the specified period, the total premiums signed compared to the same period last year decreased by 28% and amounted to UAH 17.6 billion. The dynamics of indicators for the last two quarters of 2022 indicate that the largest decline in the volume of activity occurred at the end of the 1st quarter of 2022. In the II quarter, the decline continued, but it was less rapid – insurers were able to adjust their work in wartime conditions.

Despite the difficult situation in the business environment, the NAIU community maintains a stable position. Regarding risk types of insurance, while other market participants showed a significant decrease in insurance payment receipts by more than 45% in the first two quarters of 2022, the decrease in this indicator was not so sharp for NAIU participants and amounted to 20%, thanks to which the overall decrease in the volume of premiums in the non-life segment it was about 30%.

Among 15.36 billion hryvnias. of collected insurance premiums of the non-life segment for the first half of 2022, the key share belongs to NAIU participants (19 companies out of 127) and amounts to 68.7% or UAH 10.55 billion. The main foundation for the market traditionally remains land transport insurance (except railway). The driver of support for the insurance market was the conclusion of contracts under the “Green Card” policy. During the war, this type of insurance increased by 76%. NAIU participants played a key role in this process, collecting almost 90% more premiums compared to the same period in 2021. Claims paid under contracts decreased by more than 30%. The share of payments on the market by NAIU participants was more than 75%.

In terms of insurance premiums, the life segment decreased by 15%. Among NAIU participants, the indicator of collected premiums was UAH 2.1 billion, which is 95.4% of the total amount in the life insurance segment (10 companies out of 13). Claims paid of NAIU participants for this segment amounted to UAH 354.63 million, which almost corresponds (minus about 3%) to the first half of 2021. At the same time, NAIU participants covered almost 99% of payments among all life companies.

In general, the National Bank of Ukraine gave a high assessment of the activity of insurers based on the results of the first half of 2022. In particular, the Deputy Head of the National Bank of Ukraine noted: “The insurance market is passing the test of war with dignity. It became the catalyst that showed the real state of affairs of each insurer. Financially stable companies continued their activities, adjusted their work and ensured the fulfillment of their obligations to consumers. Such companies have proven their viability and are ready to work on the market in the future, even in conditions of war.”

Detailed information through interactive data visualization can be found on the website NAIU.

The National Bank has opened two separate multi-currency special accounts:

I. To raise funds for the needs of the Army, funds from which are transferred directly to the Ministry of Defense of Ukraine, the National Guard, etc. Information here.

II. A separate account for the Ministry of Social Policy of Ukraine for humanitarian purposes. Information here.

Detailed information:

  1. Account for raising funds for the needs of the Army:

This decision was made in connection with the imposition of martial law in Ukraine, armed aggression by the Russian Federation, and the threat to the state’s independence and territorial integrity of Ukraine.

The opening of the special account was announced by the Chairman of the National Bank of Ukraine, Kyrylo Shevchenko, in his video address on the morning of February 24.

Official special account details: UA843000010000000047330992708

The account is multi-currency and is created and opened for both international partners and donors to transfer funds in foreign currency (US dollars, euros, British pounds, Swiss francs, Australian dollars, Canadian dollars, Chinese yuan, and yen) and for Ukrainian businesses and citizens to transfer funds in the national currency.

To deposit funds in the national currency:

Bank: National Bank of Ukraine MFO 300001

Account number: UA843000010000000047330992708

EDRPOU code: 00032106

Beneficiary: National Bank of Ukraine

To deposit funds in USD:

BENEFICIARY: National Bank of Ukraine BENEFICIARY

BIC: NBUA UA UX BENEFICIARY

ADDRESS: 9 Instytutska St, Kyiv, 01601, Ukraine

ACCOUNT NUMBER: 400807238

BENEFICIARY BANK NAME: JP MORGAN CHASE BANK, New York BENEFICIARY BANK BIC: CHASUS33 ABA 0210 0002 1 BENEFICIARY BANK ADDRESS: 383 Madison Avenue, New York, NY 10017, USA PURPOSE OF PAYMENT: for crediting account 47330992708

To deposit funds in EUR:

BENEFICIARY: National Bank of Ukraine

BENEFICIARY BIC: NBUAUAUXXXX IBAN DE05504000005040040066

PURPOSE OF PAYMENT: for crediting account 47330992708

BENEFICIARY BANK NAME: DEUTSCHE BUNDESBANK, Frankfurt BENEFICIARY BANK BIC: MARKDEFF BENEFICIARY BANK ADDRESS: Wilhelm-Epstein-Strasse 14, 60431 Frankfurt Am Main, Germany

To deposit funds in GBP:

BENEFICIARY/RECIPIENT NAME: National Bank of Ukraine

SORT CODE: 60-92-42

ACCOUNT NUMBER: 0080033041 GB52CHAS60924280033041 REFERENCE FOR CREDITING ACCOUNT: 47330992708

BENEFICIARY BIC: NBUA UA UX BENEFICIARY ADDRESS: 9 Instytutska St, Kyiv, 01601, Ukraine BENEFICIARY

BANK NAME: JP MORGAN CHASE BANK NA, London BENEFICIARY BANK BIC: CHASGB2L BENEFICIARY

BANK ADDRESS: 125 London Wall, London EC2Y 5AJ, UK

To deposit funds in CHF:

BENEFICIARY: National Bank of Ukraine BENEFICIARY

BIC: NBUA UA UX BENEFICIARY ADDRESS: 9 Instytutska St, Kyiv, 01601, Ukraine ACCOUNT NUMBER: 0700-01227572 IBAN CH32 0070 0070 0012 2757 2

BENEFICIARY BANK NAME: ZURCHER KANTONALBANK, ZURICH BENEFICIARY BANK BIC: ZKBKCHZZ80A

BENEFICIARY BANK ADDRESS: Josefstrasse 222, 8005 Zurich, Switzerland PURPOSE OF PAYMENT: for crediting account 47330992708

To deposit funds in AUD:

BENEFICIARY: National Bank of Ukraine

BENEFICIARY BIC: NBUA UA UX BENEFICIARY ADDRESS: 9 Instytutska St, Kyiv, 01601, Ukraine ACCOUNT NUMBER: 81753-2

BENEFICIARY BANK NAME: RESERVE BANK OF AUSTRALIA, Sydney BENEFICIARY BANK BIC: RSBKAU2S

BENEFICIARY BANK ADDRESS: GPO Box 3947, Sydney NSW 2000, Australia PURPOSE OF PAYMENT: for crediting account 47330992708

To deposit funds in CAD:

BENEFICIARY: National Bank of Ukraine

BENEFICIARY BIC: NBUA UA UX BENEFICIARY ADDRESS: 9 Instytutska St, Kyiv, 01601, Ukraine ACCOUNT NUMBER: 3144-1044-166

BENEFICIARY BANK NAME: BANK OF MONTREAL, Toronto BENEFICIARY BANK

BIC: BOFMCAM2

BENEFICIARY BANK ADDRESS: 100 King Street West, 24th Floor, Toronto, Ontario, M5X 1A1, Canada PURPOSE OF PAYMENT: for crediting account 47330992708

To deposit funds in JPY:

BENEFICIARY: National Bank of Ukraine

BENEFICIARY BIC: NBUA UA UX BENEFICIARY ADDRESS: 9 Instytutska St, Kyiv, 01601, Ukraine ACCOUNT NUMBER: 653-0430048

BENEFICIARY BANK NAME: MUFG BANK LTD, Tokyo BENEFICIARY BANK BIC: BOTK JP JT BENEFICIARY BANK ADDRESS: 1-2-3, Nihombashi HONGOKU-CHO, Chuo-ku, Tokyo 1003 -0021 Japan

PURPOSE OF PAYMENT: for crediting account 47330992708

To deposit funds in PLN:

BENEFICIARY: National Bank of Ukraine

BENEFICIARY BIC: NBUA UA UX BENEFICIARY ADDRESS: 9 Instytutska St, Kyiv, 01601, Ukraine

ACCOUNT NUMBER: PL91113000070080239435200002

BENEFICIARY BANK NAME: Bank Gospodarstwa Krajowego

BENEFICIARY BANK BIC: GOSKPLPW BENEFICIARY BANK ADDRESS: Al. Jerozolimskie 7, 00-955 Warszawa, Polska (temporary address: Chmielna 73, 00-801 Warszawa, Polska)

PURPOSE OF PAYMENT: for crediting account 47330992708

  1. Account for raising funds for humanitarian purposes:

Additionally, the National Bank has opened a current account for humanitarian purposes for the Ministry of Social Policy of Ukraine.

This account will be used for receiving charitable assistance from Ukraine and abroad. The Ministry of Social Policy will use the collected funds to provide support to Ukrainian citizens who are most affected by the war.

“Russian aggression has left thousands of Ukrainians without shelter, money, clothing, food, and other basic necessities. However, Ukraine and the world do not leave them alone with their suffering. Financial support is actively coming from both our state’s citizens and abroad to help those affected by the war with Russia. In order to streamline the receipt of funds from donors for humanitarian assistance to Ukrainian war victims, the National Bank has opened an account for the Ministry of Social Policy, which will accumulate charitable contributions for social needs during wartime. Unlike the special account opened for financing the needs of the Armed Forces of Ukraine, funds from this account will be used to help citizens who are most affected by the war with Russia,” said Kyrylo Shevchenko, Chairman of the National Bank of Ukraine.

The received funds to this account will be directed by the Ministry of Social Policy to:

Account details for the Ministry of Social Policy: UA823000010000032302338301027

The account is multi-currency, created and opened for both international partners and donors to transfer funds in foreign currency (US dollars, euros, British pounds), and for Ukrainian businesses and citizens to transfer funds in the national currency.

To deposit funds in the national currency:

Bank: National Bank of Ukraine MFO 300001

Account number: UA823000010000032302338301027 EDRPOU code: 37567866

Beneficiary: Ministry of Social Policy of Ukraine

To deposit funds in EUR:

BENEFICIARY: Ministry of Social Policy of Ukraine

BENEFICIARY BIC: NBUAUAUXXXX IBAN DE85500000000050002137 PURPOSE OF PAYMENT: for crediting account 32302338301027

BENEFICIARY BANK NAME: DEUTSCHE BUNDESBANK, Frankfurt BENEFICIARY BANK BIC: MARKDEFF BENEFICIARY

BANK ADDRESS: Wilhelm-Epstein-Strasse 14, 60431 Frankfurt Am Main, Germany

To deposit funds in USD:

BENEFICIARY: Ministry of Social Policy of Ukraine

BENEFICIARY BIC: NBUA UA UX

BENEFICIARY ADDRESS: 9 Instytutska St, Kyiv, 01601, Ukraine

ACCOUNT NUMBER: 400807238

BENEFICIARY BANK NAME: JP MORGAN CHASE BANK, New York BENEFICIARY BANK BIC: CHASUS33 ABA 0210 0002 1

BENEFICIARY BANK ADDRESS: 383 Madison Avenue, New York, NY 10017, USA PURPOSE OF PAYMENT: for crediting account 32302338301027

To deposit funds in GBP:

BENEFICIARY/RECIPIENT NAME: Ministry of Social Policy of Ukraine SORT CODE: 60-92-42

ACCOUNT NUMBER: 0080033041 GB52CHAS60924280033041

REFERENCE FOR CREDITING ACCOUNT: 32302338301027

BENEFICIARY BIC: NBUA UA UX BENEFICIARY ADDRESS: 9 Instytutska St, Kyiv, 01601, Ukraine

BENEFICIARY BANK NAME: JP MORGAN CHASE BANK NA, London BENEFICIARY BANK BIC: CHASGB2L

BENEFICIARY BANK ADDRESS: 125 London Wall, London EC2Y 5AJ, UK

To deposit funds in JPY:

BENEFICIARY: Ministry of Social Policy of Ukraine

BENEFICIARY BIC: NBUA UA UX BENEFICIARY ADDRESS: 9 Instytutska St, Kyiv, 01601, Ukraine ACCOUNT NUMBER: 653-0430048

BENEFICIARY BANK NAME: MUFG BANK LTD, Tokyo

BENEFICIARY BANK BIC: BOTK JP JT BENEFICIARY

BANK ADDRESS: 1-2-3, Nihombashi HONGOKU-CHO, Chuo-ku, Tokyo 1003 -0021 Japan

PURPOSE OF PAYMENT: for crediting account 32302338301027

On February 9th, the General Meeting of the National Association of Insurers of Ukraine took place, during which, among other things, the term of office of the current Presidium of the Association was extended for one year, and one new member of the Presidium was elected.

NAIU welcomes a new member, Pavlo Tsaruk (IG “TAS”), to the Presidium.

At the first meeting of the Presidium, the candidacy of Olena Uljee for the position of Chair of the Presidium was unanimously supported.

“As NAIU’s experience in 2021 showed, one of the components of the Association’s successful work is constant interaction among all participants and the office in addressing both current issues and the global challenges facing the market. I am particularly grateful to the Presidium for their continuous productive work and for shaping the Association’s balanced positions,” said Denis Yastreb, General Director of NAIU.

Reference:

The NAIU Presidium includes

Andriy Vlasenko (IC “TAS”)

Natalia Bazilevska (“Grave Ukraine Life Insurance”)

Olena Uljee (IC “Unika”)

Vasyl Zubach (IC “PZU Ukraine”)

Serhiy Avdeyev (IC “Arsenal Insurance”)

Oleksiy Muzychko (IC “Universal”)

Pavlo Nelha (IC “Ukrainian Insurance Group”)

Andriy Peretyazhko (IC “ARX”)

Pavlo Tsaruk (IG “TAS”)

The National Association of Insurers of Ukraine has determined the main areas of activity for 2022

The General Assembly of NAIU (National Association of Insurers of Ukraine) has outlined the main directions of the Association’s activities for the upcoming year.

Among the priority areas of NAIU’s activities for 2022, the following have been identified: Implementation of the Law of Ukraine “On Insurance.”

  1. Revision of the Law of Ukraine “On Mandatory Civil Liability Insurance of Owners of Land Vehicles.”
  2. Improvement of the taxation system for insurance activities.
  3. Issues related to the implementation of primary financial monitoring.
  4. Promotion of the development of voluntary health insurance.
  5. Encouragement of life insurance development through the introduction of tax incentives.
  6. Development and enhancement of electronic technologies in insurance, including the use of payment services.

NAIU has planned to hold an Insurance Conference in 2022.

Additionally, by the decision of the General Assembly of the Association, Denis Yastreb’s term as General Director of NAIU has been extended for one year.

NAIU congratulates the insurance community on the adoption of the relevant Law

The adoption of the updated Law of Ukraine “On Insurance” by the Verkhovna Rada of Ukraine opens up opportunities for the development and legal regulation of insurance companies and consumers of insurance services.

The current situation in financial markets and the global challenges affecting the economies of all countries worldwide demonstrate the need for comprehensive reform of the Ukrainian regulatory and supervisory system for non-banking financial institutions, including insurance companies.

For decades, the domestic insurance market operated under outdated legislation, which was periodically “modernized” through piecemeal changes and additional regulatory acts. After the transfer of regulatory functions to the National Bank of Ukraine, there was an urgent need for a substantial update of the legislation governing the insurance market. Experts from the National Bank of Ukraine, the relevant committee of the Verkhovna Rada, insurance market experts, members of parliament, and industry associations all contributed to the development of the updated insurance law. In a short period, the authoring team managed to prepare a draft law that takes into account modern requirements for the activities of insurers, their supervision, and aligns with the directives of the European Union.

The National Association of Insurers of Ukraine actively participated in the preparation and advocacy of the draft law “On Insurance.” The main goal of the association was to incorporate the progressive experience of association member insurers into the draft law and to safeguard the interests of the traditional insurance market. The updated “Insurance Law” is only the first step towards bringing the Ukrainian insurance market closer to the best global standards. In the next two years, the insurance community, in collaboration with the National Bank of Ukraine and the Verkhovna Rada of Ukraine, needs to develop, process, and adopt nearly fifty regulatory acts related to the implementation of the Law on Insurance. The experience gained during the preparation of this draft law will enable the qualitative updating of the regulatory framework in the shortest possible time.

Competition for the position of the General Director of NAIU

The National Association of Insurers of Ukraine, in accordance with its statutory documents, announces a competition for the position of the association’s leader.

Documents and information for participation in the competition will be accepted via email at [email protected] until November 30, 2021, inclusive.

The competition winner will be considered by the General Assembly of the Association for approval as the General Director.

Requirements for the candidate and the list of documents to be submitted are provided in the attachment to this announcement.

To participate in the competitive selection, the candidate must send the following documents by email to the address specified in the selection announcement:

  1. Application for participation in the competitive selection (in any form).
  2. Copy of the employment record book or documents confirming work experience.
  3. Copy of the document on higher education.
  4. Biographical reference (resume) containing, among other things, the exact period of work, job titles, duties performed in the specified positions, and the number of employees under supervision (in any form).
  5. Motivational letter.
  6. Competition proposal.
  7. Consent to the processing of personal data.
  8. The person expressing a desire to participate in the selection may provide additional information confirming compliance with the requirements specified in the announcement, particularly regarding work experience, professional competence, reputation (recommendations, publications, etc.).

The competition proposal should include:

Requirements for candidates:

Responsibilities of the Association’s Head:

For more information about the competition conditions and the role of the association’s leader, you can inquire by sending a request to the competition email address.

Information about the insurance market of Ukraine is now publicly available

Now, in Ukraine, you can freely access interactive data about the state of the insurance market. NAIU has made this information available to the general public as part of the PDMA project (Information Disclosure Project. Monitoring and Analysis) by adopting the relevant decision at the recent meeting of the Presidium.

PDMA provides the opportunity to access current information from project participants, including the 20 Non-Life insurance companies that are major players in the market and are part of the association, as well as the National Bank of Ukraine (NBU).

With the latest data on the activities of insurers for the first 6 months of 2021, you can familiarize yourself on the NAIU website at the following link. Regulatory reporting is grouped by categories, including data on insurance premiums and payouts: dynamics, main types, portfolio structure, and details on specific products such as Mototr Casco and MTPL.

“Our goal is to make information about the insurance market more accessible to its participants and more understandable for consumers of insurance services. Convenient visual representation of insurer data will allow the entire interested audience to see the main trends in the insurance market, draw conclusions about its activities, and development trends,” said Denis Yastreb, CEO of NAIU.

The information will be constantly updated with the disclosure of NBU data and other open sources. The project’s future plans include expanding access to analytics and forecasts for a wider audience.

The promotion of securing one’s own pension and encouraging Ukrainians to make additional pension savings should become one of the state programs

There is an ongoing debate about whether to transition to an accumulative level of the pension system and how to ensure people receive a decent pension. Nina Guzey, an expert and the executive director of the National Association of Insurers of Ukraine, comments on this matter.

How can the implementation of an accumulative pension system address the issue?

In my opinion, the implementation of an accumulative pension system will not solve the problem in the near future, in the next 5-10 years. However, considering the future, only accumulative pension savings, both mandatory and voluntary, can relieve the burden on the solidarity system and ensure a decent standard of living for future retirees. Even small individual contributions to the pension system will not only clearly demonstrate to the participant the level of their personal savings but also encourage them to make additional contributions to increase their future pension payouts. The introduction of an accumulative system will not only reduce citizens’ paternalistic attitudes, where most rely solely on the state, with the common phrase being ‘I worked all my life, so the state should provide a decent pension.’ It will also serve as a significant incentive to enhance personal responsibility for both individuals and employers regarding the size of their future pensions.

How actively are Ukrainians currently using the services of private pension funds?

Even though year by year, the hopes of an average Ukrainian for a state pension become weaker, the culture of long-term personal savings remains very low. Low living standards and a high level of distrust in financial institutions are the main factors restraining the popularity of institutions such as non-state pension funds, as evidenced by statistical data. There are approximately 85,000 individual depositors in non-state pension funds, and their contributions make up only 14% (360 million UAH) of pension contributions (according to the NCCPFR data as of June 30, 2021). The total value of pension assets under such contracts is 3.7 billion UAH. It’s worth noting that while there is a positive trend in the growth of the number of depositors, it remains very low. These facts indicate that private pension funds are not popular.

What other options for saving money for retirement do Ukrainians use?

Ukrainians are more actively using the services of life insurance companies, which offer savings programs both until reaching the retirement age and for a specified period as stipulated in the contract. Such programs are popular not only because of the accumulation aspect but also because they provide additional insurance coverage (financial support) in case of critical illnesses, traumatic injuries, and other health-related events, including death. As of June 1, 2021, life insurance companies had approximately 1.5 million savings contracts with individuals, and the amount of insurance reserves (the size of obligations for accumulations) under such contracts amounted to 12.7 billion UAH. However, this indicator is also extremely low compared to the European market.

The banking sector also offers deposits for longer terms than one year, but the share of such deposits is very small, and investments with a maturity of 2-3 years are difficult to describe as retirement savings. Those citizens with incomes higher than the average wage tend to invest their savings in real estate with the hope of securing a passive income ‘in old age’ in the form of rental income. Considering that such assets as real estate require substantial investments, this method of pension provision can hardly be called accessible and widespread. The same can be said for savings through investment funds.

In summary, it can be stated that popularizing personal pension provision and encouraging Ukrainians to make additional pension savings should become one of the state programs. Various approaches should be applied, including mandatory pension contributions and incentives for voluntary pension savings, including tax preferences for both individuals and employers.”