LIOU took part in the discussion “Regulation of Non-Bank Financial Markets: International Experience”

On November 21, 2018, with the participation of the First Deputy Chairman of the National Bank of Ukraine Kateryna Rozhkova, the discussion “Regulating Non-Bank Financial Markets: International Experience” was held. The event’s organizer is the Independent Association of Ukrainian Banks (NABU).

Opened the work and acted as moderator of the panel discussion “Position and Observations of the Market”, Chairman of the Council of NABU Roman Shpek. The proposed discussion was intended to answer the crucial question for the Ukrainian financial markets – which model of regulation would maximally promote their development and increase consumer confidence in them. During the event, Armin Mkrtchan, head of the center for consumer protection and financial literacy at the Central Bank of Armenia, and Mira Yerich-Yovich, leader of the team of experts of the EU technical assistance project “Strengthening regulation and supervision of the non-banking financial sector” shared the experience of consolidating supervision of non-bank financial markets ( EU-FINREG).

Speaking to the participants of the discussion, Oleksandr Filonyuk, President of the League of Insurance Organizations of Ukraine, said that the LIOU supports unified rules of the game and requirements for insurance companies in relation to bringing to European standards of business, prudential control, solvency and liquidity, development of the classical insurance market and attraction of investments in the industry. Unfortunately, the history of insurance business in Ukraine has many examples, when the change in the name of the regulator did not positively affect the insurance business – at different times, we saw a lack of a strategy for the development of the industry, and insurance has not become an important component of the macroeconomy of the state. Today we have a low penetration of insurance in the life of the society – the share of collected insurance premiums in GDP of the country decreases over the last three years and in 2017 was only 1.46%, the insurance industry has not become an active participant in the introduction of effective mechanisms of compulsory health insurance, CMTPL, agrarian insurance; the possibility of using insurance as a mechanism for financing risks and instruments of insurance protection in the state is insignificant. The laws of Ukraine – the new Law of Ukraine “On Insurance”, the Law of Ukraine “On Compulsory Insurance of Civil Liability of Owners of Land Vehicles”, etc. – were not adopted for the insurance market. At the same time, insurance business all over the world is an effective way of preserving the acquired, and today it has the necessary infrastructure, professional staff, increases solvency, liquidity, profitability and asset quality.

The discussion was attended by foreign and Ukrainian experts on non-bank finance, representatives of the National Bank of Ukraine, People’s Deputy of Ukraine Ruslan Demchak, Chairman of the National Commission on Securities and Stock Market Timur Khromaev, President of the All-Ukrainian Association of Credit Unions Olga Moroz, a member of the Executive Committee of the Ukrainian Union of Financial Analysts Vitaliy Shapran, heads of insurance companies, representatives of non-bank financial markets, media representatives and others. Speakers gave answers to market questions regarding NBU plans in case of support of the bill № 2413a.

The League of Insurance Organizations of Ukraine at the event was presented by the President of LIOU Oleksandr Filonyuk and Director of the Information Policy Department of the LIOU Iryna Denisova.

Event photos –