FINANCIAL SERVICE MARKETS WATCHDOG TO DISCUSS PROBLEMS ON LIFE INSURANCE MARKET WITH PUBLIC

FINANCIAL SERVICE MARKETS WATCHDOG TO DISCUSS PROBLEMS ON LIFE INSURANCE MARKET WITH PUBLIC

The national commission for financial service markets regulation on March 1, 2017 will discuss proposals on settling problems on the life insurance market, the regulator has reported on its website.

“On March 1, 2017 the commission schedules a meeting to discuss concrete proposals how to settle problems on the life insurance market aimed at preventing the worsening of the situation on the market,” the commission said.

A rally with the participation of representatives of the public held near the commission’s building on February 21. The rally was gathered over the disappearance of life insurance companies from the market in 2016 with the funds of clients who paid to the companies for over 10 years. The rally participants demanded to toughen control over operations of insurance companies and protect the rights and interests of financial service consumers.

Clients of Garant-Life insurance company (Kyiv) on February 22, 2017 filed a claim to Kyiv’s district administrative court seeking to declare unlawful negligence by the national commission for financial service markets regulation resulted in bankruptcy of the insurer. Ilyashev & Partners Law Firm reported this. The company defends Salve Finance Ukraine clients having concluded the insurance agreements with Garant-Life.

In 2016 the commission annulled licenses of Delta Life, Vector Invest Life, Viralife and Garant-Life and removed them from the register of financial institutions. In addition, the commission decided to annul the license of three more life insurance companies – ECCO, Ukrainian insurance group Life and Oranta-Life.

Last year the regulator annulled licenses of 41 insurance companies in 2016 and removed them from the register of financial institutions. The commission also annulled licenses of eight more insurers.

According to the regulator, the number of life insurance companies in Ukraine from January 1 through September 30, 2016 fell by six, to 43 companies and the number of non-life insurers – by 32, to 280 companies. The total number of insurance companies over the period fell by 38, to 323 companies.