During the transition period, laws are being developed to regulate the insurance sector's work. From July 1, 2020, the National Bank will begin to regulate the market and new legislative acts will come into force from January 2021, he explained.
Captive insurance companies as a form of doing business were also discussed at the conference. Viacheslav CHERNIAKHOVSKY, Director General of the Insurance business Association, among advantages of this form, noted a possibility to save money by reducing amounts of insurance premiums, to establish the acceptable risk level, to place part of assets at the enterprises of the group, as well as to better protect company interests and keep secret information about business processes and innovations. According to him, it's necessary to determine the status of a captive insurance company in the new edition of the law on insurance in order to give impetus to the development of this form in the country.
"The main task is to choose the right model for the transformation of the Ukrainian insurance market for its development for the next decades. This applies to both the transformation of the legislative framework and regulatory policy, and the change in business models and the work of insurers", CHERNIAKHOVSKY explained. He also pointed out, that Ukrainian market is far behind from European countries - GWP per capita is less than EUR 50 (vs EUR 2200 in Europe, based on 2017 data), and there is a sharp decrease in the number of insurers - from 407 to 234 over the last 6 years.
"In the current situation, insurance companies are forced to choose the right transformation model, which allows them to maintain their place in the market and provide resources for development. Among the possible options for transformation are closing or selling a business, transforming the insurance company into an intermediary, enlarging insurance company or converting to a captive insurance company", he added.
VI International Carpathian Insurance Conference was held in Lviv on February 26-29. The participants discussed legislative changes and changes of the procedure of state regulation of financial markets, the market results, motor insurance of Ukraine through changing situation, as well as the perspectives of the insurance and reinsurance business.
The conference was attended by 115 specialists. As Alexander FILONYUK, President of LIOU (League of Insurance Organizations of Ukraine) noted, for 16 years the International Carpathian Conference has become a professional platform for annual discussions of problems and plans of the insurance industry. Over the years, the event was attended by representatives of many countries: Austria, Belgium, Belarus, Bulgaria, Great Britain, Georgia, Israel, Spain, Kazakhstan, Canada, Latvia, Lithuania, Moldova, the Netherlands, Germany, Poland, Russia, the USA, Tajikistan, Turkey, Hungary, Uzbekistan, Ukraine, France, the Czech Republic and Switzerland, as Forinsurer reports.