UKRAINE: In January-September, income tax of the insurance sector increased by more than 21% y-o-y

11 November 2020 — Marina MAGNAVAL
In January-September 2020, income tax of Ukrainian insurance companies amounted to UAH 1.245 billion (~EUR 37.54 million*), which is 21.3% more y-o-y, Vice President of the League of Insurance Organizations of Ukraine (LIOU), Aleksandr ZALETOV, said.

Alexander ZALETOV noted that "despite deterioration of business activity in the economy and stagnation of some insurance types, caused by the COVID-19 pandemic, as well as a decrease in profitability of investments in deposits and government bonds, total volumes of tax payments by insurers to the state and local budgets continued to grow."

The Vice President of LIOU emphasized that during the crisis, insurers with a transparent ownership structure, real assets, a diversified portfolio by types of insurance products and by clients, as well as those who supported conclusion and execution of insurance and reinsurance contracts under conditions of remote work, are more stable.

In ZALETOV's opinion, the implementation of the National Strategy for Financial Inclusion in Ukraine, which was initiated by the National Bank, will focus the development of the insurance market on priority areas such as remote channels for concluding insurance contracts, expanding insurance services in the retail segment, protecting consumer rights and increasing financial literacy in insurance.

*at the following exchange rate:
1 EUR = 33.1643 UAH (as of 1 October 2020)

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