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The draft foresees a ban on the reinsurance of risks with non-residents insurers registered in a country that is not on a list of offshore zones stipulated in Ukrainian law. MPs Oleksandr Klymenko (Our Ukraine and People's Self-Defense faction) and Yuriy Poluneyev (BYT) have proposed to cancel a requirement that risks be reinsured by Ukrainian insurers only with non-resident insurers in countries that are members of the World Trade Organization (WTO).

The draft law on amendments to the law on insurance was registered in the parliament on March 15. The authors of the document said that the law is needed to provide reinsurance, for example, in Russia and is aimed at increasing the efficiency of the participation of Ukrainian insurers in international insurance relations.

The draft foresees a ban on the reinsurance of risks with non-residents insurers registered in a country that is not on a list of offshore zones stipulated in Ukrainian law.

The draft also proposes not to apply a requirement on reinsurance agreements under which transactions on reinsurance by resident insurers with non-resident insurers are possible if there is a memorandum between the body empowered to oversee insurance companies of the country in which non-resident insurers are registered, and Ukraine's State Commission for Financial Service Markets Regulation, or if there is a multilateral memo on mutual understanding regarding cooperation and information exchange with the international association of insurance supervision bodies.

The lawmakers said that the signing of the said agreements will take some time, and their realization requires lengthy domestic procedures. The requirement at present effectively prevents domestic insurers from reinsuring risks with non-resident insurance companies.