In connection to this, on April 19, licenses of four insurers were temporarily suspended, and before that, several other companies announced their exit from the market, Forinshurer reports.
Based on the results of supervision over insurance companies in the second half of 2020, at the beginning of March 2021, offenses were drawn up for 46 companies. Since such measures can lead to a difficult situation, the National Association of Insurers of Ukraine applied to the NBU on this issue, and to the Motor (Transport) Insurance Bureau (MTIBU), said Director General of the Association Denis YASTREB for Interfax-Ukraine.
"There is a big risk that this year 30% of the companies may leave the market, and even more - they can do it without warning", he stressed. At the same time, 15 members of MTIBU may leave the market due to non-compliance with new regulatory requirements. Denis YASTREB noted that the Association hopes to take measures to avoid this risk of leaving or reduce its size. In addition, according to the estimates, the risk for insurers-members of MTIBU is about UAH 270 million (subrogation claims).
For example, the share of four insurers, whose licenses were recently suspended by the NBU, on MTPL market is about 8% (UAH 488 million in premiums/EUR 14.49 million*) and the liabilities of these companies, in the event of non-coverage of insurance losses under existing contracts, will be covered by guarantee payments from the MTIBU Funds.
The Association noted that during communication with the National Bank, the issue of toughening requirements for additional contributions to the MTIBU Victim Protection Fund (VPF) was discussed. In the opinion of the Association, this will help accumulate more funds for the VPF through additional contributions and reduce the risk of joint liability of insurers. The proposal was to increase deductions from 10% to 20%, and with an increase in the rate of MTPL sales - to 30%, as explained by Denis YASTREB.
*at the following exchange rate:
1 EUR = 33.67 UAH (26.04.2021)