NBU: Insurance share in GDP to grow from 1.4% to 2% by 2025

The Strategy of Ukrainian Financial Sector Development until 2025 is available on the regulator's website.

 REUTERS

REUTERS

The share of insurance in Ukraine's GDP should increase from the current 1.4% to at least 2% by 2025, according to the Strategy of Ukrainian Financial Sector Development until 2025.

The document was published on the website of the National Bank of Ukraine (NBU), the regulator said on January 16.

According to the Strategy, the share of eligible assets within the total assets of insurance companies shall not be lower than 80% (73% as of September 30, 2019). The share of motor vehicle accidents that had been regulated by the European Accident Statement is set at 50% (35% as of today), while all contracts on compulsory insurance of civil and legal liability in respect of the use of land motor vehicles shall be concluded online exclusively (currently it's 5%).

The Strategy also provides for the creation of a register of insurance intermediaries and a centralized online database of insurance contracts, which will enable control over their conclusion and validity.

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In addition, the share of life insurance by legal entities and individuals in the total received amount of net insurance premia is expected to grow from 10.9% to no less than 20%.

The Strategy also envisages cancellation of insurance types, including 43 mandatory ones, and transition to insurance classes.

Moreover, the document provides for the introduction of common standards for corporate governance and internal controls system for financial sector participants, taking into account the principle of proportionality, as well as 100% ensuring a transparent ownership structure of participants in the nonbanking financial sector.

As was earlier reported, the National Bank of Ukraine, the National Securities and Stock Market Commission, the National Commission for Regulation of Financial Services Markets, the Deposit Guarantee Fund, and Ukraine's Finance Ministry on January 16 signed the Strategy of Ukrainian Financial Sector Development until 2025.

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