The National Bank of Ukraine, in order to assess the quality of assets of insurance companies, introduced a requirement for an additional audit report on the insurer and approved the procedure for its submission. This was reported by the NBU press service.
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As stated in the message, based on the results of 2023, the National Bank will require the insurer to provide not only a report on the audit of financial statements, but also an additional report with detailed information about the approaches, methods and results of the auditor’s analysis of the quality of the insurer’s assets.
The corresponding requirement is provided for by the Regulations on the requirements for the additional report of the audit entity on the insurer and the procedure for its submission, approved by Resolution of the NBU Board of February 15, 2024 No. 20, which comes into force on February 17, 2024.
The new regulation is also establishes:
- the procedure for appointing an auditor who provides services for the preparation of an additional report, and notification of this to the NBU; requirements for information in the report, in particular, in the context of various categories of assets; the procedure for the auditor to submit an additional report to the National Bank.
The presentation of an additional report on the insurer for 2023 is aimed at checking the status of assets taken into account in calculating regulatory capital according to the new rules, as well as confirming that the insurer has documents on property rights and an assessment of the size of assets.
p>The list of assets about which additional information will be required includes, in particular, real estate, securities, funds in the bank and accounts receivable that are not overdue.
An additional report must be provided by the auditor to the National Bank later than June 30, 2024.
