Requirements for non-resident insurers (reinsurers) will be updated
The National Bank of Ukraine (NBU) is proposing for discussion a draft Regulation on Requirements for a Non-Resident Insurer in the Course of Insurance Activities in Ukraine (the "Draft").
The Draft has been developed to implement the provisions of the Law of Ukraine "On Insurance" (hereinafter referred to as the "Insurance Law") and provides for, in particular
- requirements for the financial strength (stability) rating of a non-resident insurer (reinsurer) established by an international rating agency at a level not lower than investment grade
- the possibility for a non-resident insurer (reinsurer) to carry out reinsurance activities without complying with the levels of financial strength (stability) rating set out in the Draft, if such non-resident meets the requirements of part two of Article 6 of the Insurance Law and has at least three years of experience in carrying out insurance (reinsurance) activities.
The new requirements will apply to both non-resident insurers and non-resident reinsurers with whom insurers and insurance intermediaries are entitled to establish contractual relations. When non-resident insurers (reinsurers) fulfill the requirements set forth in the Draft Law, transactions under contracts concluded with them will be subject to taxation on preferential terms (in accordance with the provisions of the fourth paragraph of sub-clause 141.4.5 of clause 141.4 of Article 141 of the Tax Code of Ukraine).
After the Draft Law is approved, the Order of the National Commission for the State Regulation of Financial Services Markets dated July 11, 2013, No. 2262 (as amended) will cease to be effective.
The NBU accepts comments and suggestions to the Draft until April 25, 2024 inclusive in the form provided.
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