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Posted On

26
August
2021

NBU drafts regulation on insurance of agricultural products with state support

KYIV. Aug 26 (Interfax-Ukraine) – The National Bank of Ukraine (NBU) has drafted and proposed to the market for discussion a draft regulation on the implementation of activities in insurance of agricultural products with state support, according to the regulator’s website.

It is also noted that the document has been drafted in accordance with requirements of the law on the specifics of insurance of agricultural products with state support.

The annex proposes to fix the provision that this type of insurance can be carried out by a company if it or its parent structure has experience in insurance and reinsurance of agricultural risks, as well as reinsurance contracts for these risks that meet the regulator’s requirements.

In addition, the insurer should not have any enforcement measures applied by the National Commission for the State Regulation of Financial Services Markets and/or the National Bank in terms of non-compliance with capital adequacy and solvency standards, liquidity, profitability, asset quality and riskiness of operations.

In addition, the insurer must, as of the last reporting date, meet requirements of mandatory criteria and capital adequacy standards, have ownership structures that meet requirements of NBU regulations, as well as qualified personnel with experience in production of agricultural products or its insurance.

According to the report, in addition, it is planned to establish requirements for such insurance companies to ensure their solvency, the procedure for reinsurance of risks, the specifics of formation of insurance reserves under such contracts, and accounting for insurance contracts.

The draft regulation determines the procedure for confirming by the National Bank of compliance or non-compliance of the insurer with all the specified requirements for adding information into a list of companies eligible for insurance of agricultural products with state support, which is maintained by the Ministry of Agrarian Policy and Food of Ukraine.

Comments and proposals to the draft regulation are accepted until September 20, 2021.