Since January 2022, the National Bank of Ukraine (NBU) has been coordinating the positions of the chairman of the board (sole executive body), members of the board, chief accountant, chairman and members of the supervisory board of insurance companies from January 2022 in accordance with license terms, the regulator has told Interfax-Ukraine.
“Persons in these positions do not require the appropriate approval before the expiration of their tenure,” the NBU said in a statement.
In addition, the law on insurance from January 1, 2024 introduces separate requirements for the management of the insurer, namely the chairman of the supervisory board, his deputies and members of the supervisory board, the chairman of the board (director general), his deputies and members of the board (directorate), chief accountant. In relation to these persons, as well as the chief risk manager, chief compliance manager, chief internal auditor and responsible actuary of the insurer, qualification requirements for business reputation and professional suitability are established. In respect of the independent director of the insurer, independence requirements are also introduced. Qualification requirements will be determined at the level of the normative legal act of the NBU.
The chief risk manager, chief compliance manager, chief internal auditor, responsible actuary, as well as individual heads of the insurer – the chairman of the board (director general), chief accountant, chairman and members of the supervisory board – will take office after receiving the approval of the National Bank. With regard to other managers, insurers will be able to either obtain approval before they are appointed/elected to a position, or submit documents for approval to the NBU within one month after appointment/election to the position.
In addition, the law on insurance introduces requirements for the collective suitability of the supervisory board and collegiate executive body of the insurer, which will also be effective from January 1, 2024. Collective suitability means that the members of the supervisory board or executive body have the general/cumulative knowledge, skills, professional and managerial experience to the extent necessary to understand all aspects of the insurer’s activities, adequately assess risks, make informed decisions, etc.
The National Bank will establish the requirements and procedure for assessing the collective suitability of the supervisory board and the executive body. The NBU will carry out an appropriate assessment taking into account the size of the insurer, the volumes and types of operations carried out by it, the organizational structure, the risk profile, etc. The regulator also determines the existence of collective suitability when considering the package of documents for obtaining a license. Based on the results of such an assessment, the National Bank will have the right to demand changes in the personal composition of the supervisory board or the executive body.
