Insurance market cleaned up, capitalized, shows good results – NBU governor
Since the "split", the insurance market of Ukraine has been cleaned up, is sufficiently capitalized and shows good results of its activities in terms of profit, NBU Governor Andriy Pyshnyy noted at a press conference on Thursday.
"Now we have a full understanding of the ultimate and official owners of all insurance companies that are on the market. This very important stage of transparency has taken place," he emphasized.
Pyshnyy noted that the market's performance in the third quarter of this year demonstrates growing quality. Insurers' assets increased by 40% compared to a year earlier, and their net profit doubled. Ninety percent of assets are highly liquid, consisting of cash in banks and domestic government bonds.
According to Pyshnyy, the market is currently well-capitalized and the NBU has no complaints about any insurance companies. All companies meet solvency and transparency standards for ownership structures.
"But this is just the beginning. Then, we must move on to the maturity stage. Important elements of this stage are market behavior and a corporate governance system," Pyshnyy emphasized.
As for market behavior, the NBU governor says it involves protecting consumer rights, being transparent about tariff formation, being transparent about the terms of the agreement, and taking responsibility for observing them. These are all things that will create a completely different culture in the insurance market.
Pyshnyy also noted that another stage in the market's qualitative development will be the transition to Solvency II, which will be reflected in a law to be discussed with the market next year.
Regarding the draft law on war risk insurance, Pyshnyy expressed dissatisfaction with the process by which the Finance Committee of the Verkhovna Rada considered and concluded the matter. Currently, international experience with such insurance is being analyzed, and various models are being considered. A process is underway that will allow for the formation of a sustainable, long-term model of war risk insurance. Pyshnyy also noted that he will do everything to ensure that a new concept is developed within the next few months.