What happened? Starting February 14, the National Bank of Ukraine will ease restrictions for insurers on making payments under reinsurance contracts abroad.
Source. Press service of the regulatory authority.
Details. Starting from February 14, insurers, insurance and reinsurance brokers will be able to make payments under the relevant agreements without restrictions on the date of conclusion of such agreements after the fulfilment of certain conditions.
In addition, to simplify the procedure for making reinsurance payments abroad, the NBU is creating a List of Insurers. Instead of providing the servicing bank with an individual decision of the NBU on permission to conduct foreign exchange transactions under reinsurance agreements concluded with non-resident reinsurers, it will only be necessary to send a corresponding request to the NBU.
It is noted that the inclusion of insurers in the list will be subject to compliance with a number of requirements, namely:
- no penalties applied to the insurer for violation of the financial monitoring legislation (except for a written warning) in the area of special economic and other sanctions during the year prior to the date of application and during the period of stay in the List of Insurers;
- compliance with the requirements for transparency of the ownership structure, compliance with solvency, capital adequacy and riskiness of operations, compliance with the requirements for the business reputation of the insurer, its major shareholders and managers.
In addition, the financial strength (stability) rating of the non-resident reinsurer with which the reinsurance transaction is carried out must be at least A3 (Moody's Investors Service), A- (Standard & Poor's), A- (Fitch Ratings), A- (A.M. Best), the regulator specifies.