The share of insurance in Ukraine’s GDP is very low and has a downward trend: since 2014 and as of June 30, 2021, it has decreased from 1.69% to 1.14% (by 32.5%), Director General of the Insurance Business Association Viacheslav Cherniakhovsky said at the XXI International Financial Forum in Odesa.
“We have not yet reached the indicators of the first half of 2017 in premiums if we count the market size adjusted for inflation. Achieving the level of penetration of 2% of GDP, laid down in the updated Financial Sector Development Strategy of Ukraine until 2025 year seems unlikely by the end of 2024, especially if there are no changes in the taxation of enterprises when they conclude long-term life insurance contracts for their employees,” he said.
Speaking about the steps that would contribute to the development of the market, Cherniakhovsky noted the inadmissibility of such practices as the accreditation of insurers by banks. “Not a single legislative document contains any accreditations. This is an anachronism and remnants of monopoly. On the contrary, there is a provision of the law on insurance, according to which the consumer has the right to choose an insurer, and it is forbidden to impose the conclusion of an insurance contract within the framework of other legal relations. Banks can only nominate requirements for the structure of the insurance product provided by the insurance company – definitions of insurance amounts, a list of risks, the size of the franchise, the terms of payment and cases of refusal in it,” he said.
Cherniakhovsky said that the National Bank of Ukraine (NBU), as a general regulator for the banking and insurance market, should stop this practice. “This is necessary for all consumers who receive loans now, next month, and not sometime in the future. The practice is unacceptable when banks oblige insurance companies to double prices for owners of collateralized property to receive not only interest on the loan, but and a commission of 50% of insurance payments,” he said.
According to the expert, what they are now trying to consolidate with the new law on the specifics of insurance of agricultural products with state support, in fact, is also a kind of “accreditation”. This approach is unacceptable, since any company that has received the appropriate license has the right to operate in the market for this type of insurance, he said.
On October 7 and 8, the capital of Ukraine will host the Kyiv International Economic Forum (KIEF), which for the seventh year has brought together well-known world economists, influential businessmen, representatives of the Ukrainian establishment, and authoritative economic experts.
The main issue of the forum in 2021 is peace in an era of radical changes. The COVID-19 pandemic has shown how fragile our perception of reality is. Traditional sectors of the economy are under serious attack, while technology is gaining in importance. The world’s best experts, analysts, entrepreneurs, and top management will offer their expertise to find answers to the most important questions of the development of the world economy.
Why is it important to visit KIEF 2021?
KIEF is the main platform for business representatives, economists, scientists, and investors, within which global trends are discussed, a development vector for 2021 is formed, new business contacts are established and partnerships are strengthened.
For the first time in Ukraine, the partner of this Forum will be one of the best international educational platforms for professional discussions about the economy – Economist Impact. The platform will host two panel discussions – “The Role of Emerging Markets in Global Economic Recovery” and “Welcome to the Health-care Revolution”.
During traditional networking, the world’s best experts, investors, and entrepreneurs will share their insights and answer questions, so that you can not only present your ideas but also build a complete business development strategy.
Over 130 speakers from leading international organizations and private companies, in particular WTO, EBRD, OECD, Club of Rome, World Economic Forum, McKinsey & Company,Mastercard and others, will share their vision of the future of the global economy.
The most important trends in the development of markets, issues of leadership in the new economy, as well as authentic examples of the transformation of the global economic system will not go unnoticed by the speakers of the Forum. Panelists will also talk about the latest technological advances in the development of medicine, the importance of which has grown incredibly in the face of a global pandemic.
The KIEF team strives to make Ukraine a new point of attraction for European and world investments through the development of modern production facilities. We help to establish contacts with the largest foreign investors who are ready to provide experience, knowledge, and capital for the development of the best projects.
The permanent strategic partner of the Forum is the UFuture holding company, which unites the companies and social projects of Vasyl Khmelnytsky.
The initiator of the forum Vasyl Khmelnytsky commented on the idea of creating and holding the Forum: “We live in an age of global and very rapid changes. They inspire and excite at the same time. Ukraine faces a choice: to hold on to fragile stability or to move boldly in an innovative direction. Today we can make a quantum leap in development – for this, we need knowledge, cooperation, and decisive action. I see the success of our common future in the synergy of a modernized public sector, the energy of entrepreneurs, and the talent of scientists. We must unite for the global goals facing humanity. It is time to move forward, transform business and economy in accordance with the requirements of the present. After all, KIEF is held so that we feel the trends of the future and become the ones who bring them to life”.
Kyiv International Economic Forum is a unique platform for the exchange of views and expertise for the economic development of Ukraine and the world. The forum brings together about 130 speakers to address key business development challenges, with an emphasis on adaptability and innovation.
Tickets and detailed information about the Forum are available at the link: https://forumkyiv.org/en/forum/2021/terms
The amendments made during the revision of the law on oligarchs create the basis for the sale of media assets by businessmen wishing to avoid the status of oligarchs to international media holdings at a market price, Minister of Justice of Ukraine Denys Maliuska said.
“The expectation […] is that international media holdings or someone like that will enter, and they should not be afraid of the consequences,” he said on Facebook, commenting under his post on the details of the law adopted in the Verkhovna Rada on September 23.
As part of the document revision, a rule was introduced into it that the presence of an impeccable business reputation exempts the media buyer from one of the four criteria for defining an oligarch. A rule was also added that the purchase price of a media should not be lower than the market one.
“The problem of finding a buyer for an asset: the buyer almost automatically became an oligarch, and therefore no one would buy at a normal price, only with a huge discount, which would lead to accusations of expropriation and a potential liability for compensation for damage,” Maliuska explained the need for such changes.
In his post on Facebook, he predicted that opponents of the law will try to delay the law implementation as long as possible, “preferably before the next parliamentary elections,” and also try to get it overturned, including through the Constitutional Court.
The Justice Minister also believes that all decisions of the National Security and Defense Council (NSDC) on recognizing individuals as oligarchs will be appealed to the Supreme Court and the European Court of Human Rights (ECHR).
Ukrainian Aleksandr Usyk became the owner of the IBF, WBO, WBA Super, and IBO heavyweight champion belts (over 90.718 kg), having taken them away from the Briton Anthony Joshua.
The Ukrainian won the fight, which took place at the Tottenham Hotspur stadium in London, by unanimous decisions of all referees (117-112, 116-112, 115-113).
President of Ukraine Volodymyr Zelensky has congratulated boxer Aleksandr Usyk on his victory over Briton Anthony Joshua.
“Ukraine is returning its own! Champion titles WBA, IBF, IBO, and also WBO – again, as it should be, belong to the Ukrainian! A difficult, but that’s why most valuable victory. Thank you Sanya! Bravo, Champion! Power! Strength! Usyk!” Zelensky wrote on his Twitter page.
BELTS, BOXER, HEAVYWEIGHT CHAMPION, IBF, IBO, USYK, WBA SUPER, WBO
The growth of the heated tobacco products market in 2021 has stopped after its growth by 80% in 2020. In the future the market will decline due to an increase in the excise tax on heated tobacco products by 320% from January 1, 2021, Managing Director for Ukraine of international tobacco company Philip Morris Kostas Salvaras has told Interfax-Ukraine.
“In 2020, the heated tobacco products market, according to our estimates, grew by 80%, but after the excise tax was increased by 320% from January 1, 2021 and subsequently the price grew, this indicator first slowed down a lot, and then practically stopped. According to our data, retail prices on tobacco sticks since the beginning of the year [2021] have grown by an average of UAH 13. This is not enough to compensate for even half of the increase in excise duty,” he said.
According to Philip Morris, the state budget receipts from the sale of heated tobacco products in the fourth quarter of 2021 will decrease by 60-70% compared to the same period in 2020. In addition, over the specified period, the company intends to reduce the purchase of excise duty stamps for heated tobacco products by nearly 67%.
“In addition, we have already recorded in Ukraine the first deliveries of smuggled heated tobacco products from neighboring countries, where their prices are lower. On the example of cigarettes, we see: when taxes on nicotine-containing goods grow too sharply, the level of illegal trade begins to rise rapidly. Today, 15.9% of the cigarette market is in the shadows. For comparison: in 2017 this figure was only 2.3%,” Salvaras said.
According to him, in 2021, given the current level of illegal trade in tobacco products, the state will receive less than UAH 13.2 billion in tax receipts.
Philip Morris said that an increase in the illegal trade in tobacco products may also occur in the heated tobacco products category, which will lead to a loss of government income, and smokers will not be able to switch from cigarettes to less harmful tobacco heating systems.
“For example: IQOS, our tobacco heating system, can reduce the amount of pollutants entering the smoker’s body by 90-95% compared to cigarettes. As explained by the FDA after authorization of IQOS sales on the U.S. market as a product with a modified risk, it can have a positive effect on public health in general,” the managing director of Philip Morris said.
According to the company, it proposed to the Ukrainian parliament to reconsider plans to raise excise taxes, delaying the next jump in prices for heating tobacco in the coming years.
“This is a necessary step that will allow consumers and businesses to “digest” the 320% increase and adapt to new conditions. It will also stimulate the attraction of additional investments in this area, which is important both for the country’s economy and for public health – after all, the authorities should be interested in motivating smokers to look for a less harmful alternative to cigarettes,” Salvaras said.
Main trade partners of Ukraine in % from total volume (import from other countries to Ukraine) Jan-June 2021
SSC of Ukraine
