The XIV International Carpathian Insurance Conference continued its work

On February 16, 2018, the XIV International Carpathian Insurance Conference, held in Yaremche, continued its work.

The conference “The State of the Motor Transport Insurance Market” opened the work of the second day. Important changes, trends and upcoming prospects.” Moderators of the conference were the Member of the National Financial Services Commission Denis Yastreb and the General Director of MTIBU Volodymyr Shevchenko. The participants reviewed the draft laws of Ukraine “On Compulsory Insurance of Civil Liability Land Vehicles Owners” – No. 3670 and No. 3670-D; communication channels of companies with clients using modern technologies; market results of the “Direct settlement” project. Also, the participants discussed the company’s expectations and the prospects for customers to enter into the circulation of the electronic policy; solutions that optimize costs, accelerate processes and provide business with competitive advantages; and the issue of the prompt and uninterrupted access of insurers to police databases and other law enforcement agencies. The speakers of the conference were the main consultant of the Committee of the Verkhovna Rada of Ukraine on Finance and Banking Tetyana Botsula; Senior Underwriting Specialist General Reinsurance AG (Germany) Anatoliy Tsitsyura; Head of the Board of Insurance Company “Arsenal Insurance” Sergey Avdeev; Managing Partner of “All-Ukrainian Insurance Stories” Project Valeriy Suksin and Director General of the Ukrainian Expert Company Igor Lysyuk.

The conference “Transformation of the structure of the financial market of Ukraine” continued. Mergers and Acquisitions: hope, expectations and possibilities of the scenario “, moderated by Vitaliy Nechyporenko, Director of the Center for Business Strategies “Perspective”. Sergei Tarasov, Vice President of LIOU, told about the processes of transformation in the Ukrainian insurance market, legal aspects and possible scenarios. He noted that for the development of insurance in Ukraine, it is necessary to increase confidence and solvency and receive investments, while transformation processes are inevitable, and they will be accelerated if normative acts increase the solvency requirements, assets and capital of insurance organizations.

In his speech S. Tarasov noted that investment activity in Ukraine is characterized by an increase in resident activity, a gradual reduction of the share of direct russian capital and low transparency. The ineffective system of protection of private property rights, tax pressure and high currency risks are the obstacles to the intensification of investment activity. The Vice-president of LIOU believes that possible scenarios of transformation in the insurance market of Ukraine may be sale, reorganization (merger, acquisition), transfer of an insurance portfolio or termination of activities (liquidation). “Scenarios for the development of the Ukrainian economy do not give grounds for expecting significant inflows of foreign investment. Other factors and trends must also be taken into account. First, global mergers and acquisitions will focus primarily on significant redistribution of markets, high-tech innovation companies, and focus on markets that are confidently growing and developing. Second, thanks to advances in digital technology, business processes, communications with customers, and strategies of international companies will change. Very soon digital technologies can become an alternative or even more effective instrument for taking over markets than mergers and acquisitions” – S. Tarasov said.

Also their point of view on these issues expressed Mikhail Kuharonok, General Director of the Consulting Company “SIA” (Latvia), Irina Merzlyakova, General Director of the Belarusian Association of Insurers, and Tetyana Dmitrenko, Member of the Public Council of the State Financial Monitoring of Ukraine, Chairman of the Committee for International Cooperation of the Public Council under the Ministry of Finance of Ukraine, and others.