NAIU developed the project of the Methodology for the Formation of Insurance Reserves and in general supports the mentioned project on the condition that the norms laid down in it will become a transitional stage before the implementation of the new Law of Ukraine “On Insurance”, Solvency II, will contribute to the implementation of IFRS 17, and will also be effective for at least several years.
NAIU proposes to take into account the best practices of the insurance market and presents its vision regarding the improvement of the method of formation of insurance reserves. In particular, in its proposals to the National Bank of Ukraine, NAIU offers a more flexible approach to determining the currency of insurance with the aim of making it possible to calibrate the type of insurance currency depending on the type of insurance reserve. The mentioned changes will contribute to strengthening the solvency of insurers and will provide an opportunity to hedge currency risks.
In addition, insurers – participants of NAIU, in cooperation with actuaries, were offered to add optional methods of calculating individual indicators when forming insurance reserves. For the life segment, NAIU proposes to clarify the approaches, using the best European practices. We are confident that the provided proposals, which take into account the practical aspects of insurers’ activities, will have a positive impact on the final version of the Regulations on the Methodology for the Formation of Insurance Reserves.
We are confident that the provided proposals, which take into account the practical aspects of insurers’ activities, will have a positive impact on the final version of the Regulations on the Methodology for the Formation of Insurance Reserves.
