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For decades, the domestic insurance market operated under outdated legislation, which was periodically “modernized” through piecemeal changes and additional regulatory acts.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.
