Almost half of the Ukrainian insurance companies need capitalization

Почти половине украинских страховых компаний необходима докапитализация

Of July 1, these requirements should already run on 100%.

About 35-45% of insurance companies in Ukraine do not meet the requirements adopted a year ago of the resolution (No. 850) of the financial services Commission, which gradually increased demands on their capital, said the acting head of the national Bank Ekaterina Rozhkova in an interview with Interfax-Ukraine. All they need recapitalization.

“As of today we see that approximately 35-45% of the companies do not meet these requirements, while… of July 1, these requirements should already run on 100%, and there was a 70% standard” – said the official.

Rozhkova said that the national Bank will direct the companies for whom he sees a violation of the letter with the offer to report on their plans and depending on the response will be to make a decision.

“Whether it will destroy the financial stability of the insurance sector? No, because most of these companies do not engage in classic insurance. So I don’t see the risk here”, she said.

Rozhkova noted that the insurance sector is now a greater focus at national Bank, because it and the volume is the most basic, and there really is obligations to customers.

The acting Governor added that the Bank also is asking market participants to begin work on a transparent ownership structure.

“You need more time? Let’s at least start a normal human dialogue. We have no problem to kill everyone. Need to resolve issues with the motor, it is necessary to address the issues of bringing this market back in order. He has potential,”she said.

According to her, if you go the mortgage, there is a personal accident insurance is mandatory. For the national Bank the importance of a good insurance company in this market.

“But we have a personal request to be open with us. We want to understand how do they have quality assets quality capital, in order to understand how we can build on this industry, which, together with the banks should support the economy”, – concluded Rozhkova.

Recall from July 1 in Ukraine the law on “split” – the separation of powers of the financial services Commission between the NBU and the national Commission on securities and stock market. In other words, the Bank became the regulator of non-banking financial services and started to adjust about 1,900 non-Bank financial institutions.