The war in Ukraine has multiple operational and financial impacts on the insurers, so the industry needs sweeping measures to help the companies survive and recover.
"The core points of this plan concern not so much foreign financial assistance as organizational and regulatory issues. Basically, it reflects the position of companies with Ukrainian stakeholders", says Vyacheslav CHERNYAKHOVSKY, general director of the Insurance Business Association. According to him, most insurers in Ukraine have seen their revenues drop by 50% to 90% during the conflict.
Vyacheslav CHERNYAKHOVSKY outlined several proposals, including a delay of IFRS 17 implementation in Ukraine; eliminating the 3% tax on non-life insurance premiums; and further softening of regulatory requirements, namely by revising the calculation of reserves of unearned premiums.
"IFRS 17 adoption will cost insurers a huge amount of money for renewing IT infrastructure, hiring new employees, etc. There is no money for these additional expenditures and such an investment will not return in the nearest future", explained the general director of the Insurance Business Association.