You're reading: Parliament adopts new version of law on insurance at first reading

Ukraine's parliament at first reading on Tuesday adopted a bill on amendments to the law "On insurance" (new version), which was initiated by head of the subcommittee for controls and legal provision of the financial services market of the Verkhovna Rada Committee on Finance, Banking, Tax and Customs Policy, Andriy Pinchuk (Regions Party faction).

The bill was approved and agreed by the National Commission for the Regulation of the Financial Services Markets of Ukraine.The bill sticks close to the norms to European directives. According to the document, acting types of insurance were substituted with classes. The regulations on internal and external auditors and actuaries in the managing bodies of insurance companies also were changed.

Moreover, the estimates of the payment capacity reserves of insurers are in accordance with European directive Solvency II. The bill also envisages the separation of reinsurance into individual activity on the reception of a license of this type.Besides, the bill proposes to reinforce supervision over the work of insurance intermediaries.

The bill also proposes to cancel current insurance rules and their registration.