The National Bank has established requirements for the solvency of insurers, the formation of technical reserves, accounting for insurance contracts and information protection. This was reported by the regulator's press service.
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The specified requirements satisfy the norms of the Law of Ukraine “On Insurance”, which are based on the principles of Directive 2009/138/EC (Sovency II) and IFRS 17 “Insurance Contracts”.
The regulation on establishing requirements for ensuring solvency and investment activities of the insurer (approved by the resolution of the NBU board of December 29 No. 201) determines the procedure for calculating regulatory capital and its components acceptable for meeting the requirements for solvency capital and minimum capital, as well as the requirements for acceptable assets of the insurer, including covering technical reserves.
The regulation on the procedure for the formation of technical reserves by insurers (approved by Resolution of the NBU Board of December 29 No. 203) establishes requirements for the quality of data used by the insurer to calculate technical reserves, rules for the aggregation of contracts, a list and methods for the formation of technical reserves, verification by the insurer of the adequacy of the formed technical reserves and sufficiency damage reserves.
The regulation on the procedure for accounting by the insurer of contracts related to the implementation of insurance activities and the requirements for the protection of information of the insurer (approved by the resolution of the NBU board of December 29 No. 204) defines uniform requirements for keeping records of insurance (reinsurance) contracts and other insurance transactions electronically in information systems, as well as approaches to protecting information in such systems.
In particular, requirements have been established for accounting for technical reserves under concluded contracts and maintaining a register of assets to cover technical reserves.
New requirements to solvency, accounting of contracts and protection of information of insurers come into force on January 1, 2024. At the same time, a transition period is provided for insurers to bring their activities into compliance with these requirements until June 30, 2024.
The NBU noted that until January 1, 2027, insurers will calculate solvency capital using a simplified approach with taking into account indicators of insurance premiums, insurance payments, technical reserves, etc., and certain categories (life insurers and non-life insurers with significant volumes of activity) – the minimum capital according to a simplified approach.