Unofficial translation (c) Soyuzpravoinform LLC
of December 29, 2023 No. 201
About approval of the Regulations on establishment of requirements for ensuring solvency and investing activities of the insurer
According to Articles 7, 15, 55-1, 56, 58, 61 Law of Ukraine "About the National Bank of Ukraine", Articles 21, the subitem 4 Items 3, Item 30 of the Section VII of the Law of Ukraine "About financial services and finance companies", Articles 37, 38, 41, 42, 44, 45, 114, Item 25 of the Section XV of the Law of Ukraine of November 18, 2021 No. 1909-IX "About insurance", for the purpose of establishment of requirements for ensuring solvency and investing activities of the insurer Board of the National Bank of Ukraine DECIDES:
1. Approve Regulations on establishment of requirements for ensuring solvency and investing activities of the insurer (further - the enclosed Provision).
2. Determine that:
1) requirements of the subitem 8 of Item 73 of Chapter 12 of the Section V of the Provision do not extend to agreements of risks reinsurance on life insurance classes which were concluded till January 1, 2005 inclusive and will continue to be effective after entry into force of this resolution;
2) the National Bank of Ukraine (further - National Bank) makes the decision on establishment of the additional requirements to the capital of solvency of the insurer determined in the Section IV of Provisions not earlier than in three years from the date of entry into force of this resolution;
3) the insurer after entry into force of this resolution when calculating the capital of solvency for classes of insurance of another, than life insurance, for the periods which lasted within settlement periods before renewal of licenses of the insurer in license for activities on insurance according to the Law of Ukraine upon November 18, 2021 No. 1909-IX "About insurance" instead of the components of formulas installed in appendix 3 to the Provision uses components of formulas for application in calculation of the capital of solvency for classes of insurance of another, than life insurance, for the periods proceeding within settlement periods before renewal of licenses of the insurer, determined in appendix 1 to this resolution based on data of the reporting, the reporting submitted to National Bank for such periods according to requirements of the regulatory legal act of National Bank concerning representation by non-bank financial institutions in National Bank;
4) not stitched receivables, including reserve of the expected credit losses on such not stitched receivables on the placed money of the insurer in guarantee funds of the assistansky nonresident companies and/or it is direct in guarantee funds of organizations nonresident health cares, determined according to requirements of the subitem 1 of Item 40 of Chapter 6 of the Section II of Provisions, joins in the amount of acceptable assets for the purposes of calculation of the regulatory capital during action of warlike situation in Ukraine, and also within one year after its termination or cancellation without application of the restrictions to amounts of such not stitched receivables established in Item 41 of Chapter 6 of the Section II of Provisions;
5) the National Bank does not constitute the document in which the offense is fixed, and does not apply corrective action to the insurer for violation of the requirement concerning the relation of the amount of differences of assets and liabilities of the insurer, certain (nominated) in foreign currency or in bank metals, on all foreign currencies and bank metals to the regulatory capital of the insurer, Chapter 11 of the Section V of the Provision established in Item 68, during action of warlike situation in Ukraine, and also within one year after its termination or cancellation;
6) the National Bank does not constitute the document in which the offense is fixed, and does not apply corrective action to the insurer for violation of the requirement concerning the amount of acceptable assets to covering of the technical reserves under agreements of direct insurance and agreements of entrance reinsurance in each separate currency established in the subitem 2 of Item 69 of Chapter 12 of the Section V of the Provision during action of warlike situation in Ukraine, and also within one year after its termination or cancellation;
7) the requirement (restriction), determined in Items 30, of 31 Chapters 6 of the Section II and the subitem 2 of Item 73 of Chapter 12 of the Section V of the Provision, during action of warlike situation in Ukraine, and also within one year after its termination or cancellation do not extend to inclusion in the amount of acceptable assets of the insurer of money and bank metals on the current account, on accounts of conditional storage (eskro) and bank deposits (deposits), and also receivables on the added percent on such accounts and deposits (deposits) if such means are placed in resident bank which does not carry out prudential standard rates for which violation the National Bank does not apply to banks of measures of influence according to regulatory legal acts of National Bank concerning banking regulation;
8) the retained earnings of last years created as of December 31, 2022 join in the regulatory capital of the first level according to the subitem 3 of Item 11 of Chapter 4 of the Section II of Provisions taking into account influence of the International Financial Reporting Standard 9 "Financial instruments", the International Financial Reporting Standard 17" insurance contracts" reflected in the report on financial condition of the insurer as a part of the financial reporting of the insurer for 2023 which reliability and completeness are confirmed according to the audit report on carrying out statutory audit of the financial reporting of the insurer constituted by the subject of auditor activities having the right to perform statutory audit of the financial reporting of the companies which are of public interest which contains not modified opinion of such subject of auditor activities, and the insurer specified as a part of equity in the regulatory reporting;
9) reserves and funds in the amount of, created as of December 31, 2022 and reflected in the report on financial condition of the insurer as a part of the financial reporting of the insurer for 2022, join in the regulatory capital of the first level according to the subitem 4 of Item 11 of Chapter 4 of the Section II of Provisions in case of availability of the auditor report / audit reports on carrying out statutory audit of the financial reporting of the insurer for previous years based on which the profit, for the purpose of assignments of its part for increase in such reserves and funds was determined.
3. The insurer who had the status of the insurer as of January 01, 2024 till June 30, 2024 inclusive shall bring the activities into accord with requirements of the Law of Ukraine of November 18, 2021 No. 1909-IX "About insurance" on ensuring solvency and investing activities and provision and to send to National Bank the notification in the form established in appendix 2 to this resolution.
The notification goes to National Bank in electronic form, the insurer signed by imposing of the qualified digital signature by the head with observance of requirements of the legislation of Ukraine in the sphere of electronic confidential services and electronic document management, the electronic message to official electronic mailbox of nbu@bank.gov.ua National Bank. The National Bank places on the page of the official Internet representation template of the message which moves in National Bank in the xlsx format, and descriptions of parameters of its filling.
4. The National Bank does not constitute the document" in which the offense is fixed, and does not apply corrective action to the insurer who had the status of the insurer as of January 01, 2024 and did not bring the activities into accord with requirements of the Law of Ukraine of November 18, 2021 No. 1909-IX "About insurance" on ensuring solvency and investing activities and provision in the terms specified in Item 3 of this resolution for violation of requirements to the capital of solvency and the minimum capital on condition of immediate (in day of identification of the corresponding circumstances) notifications on it of National Bank and accomplishment by the insurer of the plan of recovery of activities of the insurer and/or funding plan of the insurer approved by National Bank.
5. The resolution becomes effective since January 1, 2024, except the subitem 4 of Item 32 of Chapter 6 of the Section II of Provisions which becomes effective in one year from the date of the termination (cancellation) of warlike situation in Ukraine.
Chairman
A. Magnificent
Approved by the Resolution of Board of the National Bank of Ukraine of December 29, 2023 No. 201
1. This Provision is developed according to the Law of Ukraine "About the National Bank of Ukraine", the Law of Ukraine "About financial services and finance companies" (further - the Financial services act), the Law of Ukraine of November 18, 2021 No. 1909-IX "About insurance" (further - the Insurance law), other legal acts of Ukraine concerning regulation of activities of non-bank financial institutions taking into account provisions of the Directive 2009/138/EU of the European Parliament and Council of November 25, 2009 about the beginning and conducting activities in the sphere of insurance and reinsurance.
2. This Provision establishes:
1) requirements to solvency of the insurer, including:
the procedure of payments of the regulatory capital, components of the regulatory capital and proportion of components of the regulatory capital acceptable for fulfillment of requirements to the capital of solvency, the minimum capital;
technique of assessment of assets and liabilities for the purposes of calculation of the regulatory capital;
procedure of payments of the size of the capital of solvency and the minimum capital on the simplified approach;
signs and criteria of essential variation of indicators of activities of the insurer;
procedure for establishment and cancellation, and also procedure of payments of additional requirements to the solvency capital;
2) requirements to assets of the insurer, including requirements to assets for covering of technical reserves.
Signs and criteria of essential variation of indicators of activities of the insurer are established in Item 5 of Chapter 2 of the Section I of this provision.
The structure of the requirements to assets of the insurer determined in this Provision covers (beginning from the smallest list and amount of assets taking into account that each subsequent level of requirements covers the assets conforming to requirements of all previous levels):
assets which are acceptable assets and are considered in case of covering of technical reserves;
the assets which are acceptable assets and considered in calculation of the regulatory capital;
all assets for fulfillment of requirements to assets within investing activities of the insurer.
3. Terms in this Provision are used in the following values:
1) the actuarial cost of flow of insurance payments - population mean of present value of future flows of insurance payments for settlement date;
2) lines of business insurance of responsibility list of lines of business according to the regulatory legal act of the National Bank of Ukraine (further - National Bank) relatively about forming of technical reserves by insurers, determined for the purpose of use of features of this provision:
line of business "Other motor responsibility";
line of business "MAT responsibility";
the line of business "Responsibility (except liability insurance of the operator of nuclear installation and except liability insurance of the subject of customs regime)";
line of business "Liability insurance of the operator of nuclear installation".
The line of business "Responsibility (except liability insurance of the operator of nuclear installation and except liability insurance of the subject of customs regime)" does not join in lines of business of liability insurance if the license of the insurer for implementation of activities for insurance for class of insurance 13 "insurance of other responsibility (except determined in classes 10, of 11, of 12)" includes only risk of liability insurance before the third parties, other, than the operator liability of nuclear installation for nuclear damage which can be caused as a result of nuclear incident, with restrictions and features which provide the bases for application of the simplified approach for calculation of the capital of solvency and the minimum capital, taking into account the restrictions and features determined by regulatory legal acts of National Bank concerning characteristics and classification signs of classes of insurance features of implementation of activities for insurance and the conclusion of agreements on insurance classes (dalee-Klassifikatsionnye signs of classes of insurance) and concerning authorization of suppliers of financial services and conditions of implementation of activities by them (dalee-Litsenzionnye conditions);
3) not stitched debit debt - the current receivables which repayment period did not come according to the signed agreement or the legislation of Ukraine and which term does not exceed 365 calendar days from the date of its origin (recognition);
4) immovable property building (apartment houses, non-residential buildings), and also their separate parts (apartments, residential and non-residential premises) concerning which the insurer performs state registration of the property rights to such real estate according to the legislation of Ukraine and also the parcels of land concerning which the insurer performs state registration of the property rights to such real estate according to the legislation of Ukraine, on which are located (are placed) such buildings, their separate parts;
5) the regulatory reporting reporting determined by the regulatory legal act of National Bank concerning submission of the reporting by non-bank financial institutions to National Bank, and also the report on solvency and financial condition of the insurer;
6) the amount of acceptable assets - aggregate value of the assets of the insurer conforming to the requirements, restrictions and exceptions established in this Provision;
7) authorized officer of National Bank - The chairman of National Bank, his first deputy and vice-chairmen of National Bank, heads of structural divisions of National Bank to whose functions implementation of supervision of activities in the markets of non-bank financial services belongs (further - structural divisions on supervision), deputy managers of structural divisions on supervision, heads of managements as a part of structural divisions on supervision or persons which are carrying out them obligations.
The term "the faces tied with the insurer" is used in the value determined in Article 36 of the Insurance law.
The term "subordinated debt" is used in the sense determined in the Insurance law.
Other terms used in this Provision are used in the values determined in the financial services act, the Insurance law and other regulations by regulation of insurance activity.
4. Assessment by the insurer of solvency can be performed in the following procedure:
1) determination of the regulatory capital as capital sums of the first level, the capital of the second level and the capital of the third level performed in the following procedure:
distribution of components of the regulatory capital between the capital of the first level, the capital of the second level and the capital of the third level according to Items 10-19 of Chapter 4 of the Section II of this provision;
calculation of surplus of acceptable assets for the purposes of calculation of the regulatory capital over obligations of the insurer according to Item 20 of Chapter 4 of the Section II of this provision;
the adjustment of the size of the regulatory capital of the first or regulatory capital of the second level performed according to Item 21 of Chapter 4 of the Section II of this provision on difference of the sizes determined according to paragraphs two and the third subitem 1 of item 4 of Chapter 2 of the Section I of this provision;
2) determination of the acceptable regulatory capital as regulatory capital with observance of proportion of the constituting levels of the regulatory capital according to Items 22-25 of Chapter 4 of the Section II of this provision;
3) calculation of the capital of solvency for the simplified approach according to Chapter 7 of the Section III of this provision taking into account requirements of the Section IV of this provision;
Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info
Database include more 50000 documents. You can find needed documents using search system. For effective work you can mix any on documents parameters: country, documents type, date range, teams or tags.
More about search system
If you cannot find the required document, or you do not know where to begin, go to Help section.
In this section, we’ve tried to describe in detail the features and capabilities of the system, as well as the most effective techniques for working with the database.
You also may open the section Frequently asked questions. This section provides answers to questions set by users.