The National Bank of Ukraine (NBU) held its first meeting with insurers, industry associations, and the actuarial community as part of the "Solvency II Implementation in Ukraine" project. The project was launched on August 12, 2026, and the initial meeting with insurance market participants took place on September 18.

The project aims to prepare both the insurance market and the regulator for a full transition to Solvency II requirements by the time Ukraine joins the European Union. Sergiy Nikolaychuk, First Deputy Governor of the NBU, noted that the insurers' readiness to operate under EU rules depends on the project's implementation. The transition entails risk-based solvency assessment, as well as new requirements regarding capital, reporting, and supervision.

Ukraine has already introduced some Solvency II requirements through the new Law "On Insurance," which came into force on January 1, 2024. However, a 2025 European Commission screening revealed that the level of alignment between Ukrainian legislation and the Solvency II regime remains low. The NBU estimates that, as of 2026, up to 30% of the directive's provisions have been implemented in Ukraine.

Ukraine is required to align its legislation with Solvency II—incorporating all current amendments to the directive—prior to its EU accession. The NBU intends to finalize the necessary legislative changes by the end of 2027.

The regulator is drafting amendments to the Law "On Insurance" to provide for the full implementation of Solvency II. Pillar I requirements will be revised separately, specifically the calculation methods for the Solvency Capital Requirement (SCR) and the Minimum Capital Requirement (MCR). A key milestone will be the Quantitative Impact Study (QIS), which will assess the impact of the new requirements on the insurance market. As part of the Quantitative Impact Study (QIS), the NBU plans to assess how Solvency II will affect the capital, solvency, and financial position of individual companies. The study is also intended to identify which insurers might require additional capital to meet the new standards.

The project entails a transition to new quantitative and qualitative reporting in line with EIOPA requirements. Disclosure rules for insurers will also change. The project will be implemented across four areas: modifying solvency requirements; conducting the QIS; introducing EIOPA reporting and new disclosure rules; and transitioning the NBU to a Solvency II-compliant supervisory framework for insurers.

Project implementation is scheduled for completion by 2030. However, the necessary regulatory changes must be prepared earlier—by the end of 2027—with the requirements themselves fully implemented prior to Ukraine's accession to the EU.

Source: Forinsurer.