The League of Insurance Organizations of Ukraine (LIOU) and the National Association of Insurers of Ukraine (NAU) have signed a Memorandum of Cooperation and Partnership.
“The League of Insurance Organizations of Ukraine and the National Association of Insurers of Ukraine, while remaining independent and autonomous associations, agreed to establish the Federation of Insurance Associations of Ukraine (FIAU) in accordance with the terms of the Memorandum, whose task is to form a common position of professional associations of insurers for the sake of market development in synergy with the regulator,” the League said.
It is specified that the main directions of the FSOI, in particular, will be: exchange of information and proposals for the formation of common positions on the development of the insurance market, legislation and amendments to it, protection of the interests of Ukrainian insurance companies at the national and international levels; formation of a positive image of insurance in Ukrainian society; development of codes of ethics and standards of professional conduct for insurers, in particular in terms of cooperation with insurance intermediaries and other participants in the insurance market, in particular in the field of insurance services.
In addition, it is envisaged to: develop and implement principles and approaches to the system of professional education; develop and adopt qualification requirements; organize educational programs, training for professional development and certification of insurance market participants; promote social responsibility of insurers, improve insurance products and services.
The FSOI’s working body is the Coordination Council, which will include two representatives of each of the LIOU and NASU, as well as the heads of the two associations.
The FSFU Council will be headed by a chairman who will be elected annually from the Coordination Council.
The report also clarifies that the parties to the Memorandum may only be associations registered as legal entities operating in accordance with the requirements of the law, which include insurers, and may also include persons operating in the insurance market and/or in the field of insurance.
“The FOSU and the National Association of Insurers are open to other professional associations of insurers joining the FOSU and call for moving towards each other for the development of the national insurance market,” the statement said.
Ukrainian insurance companies that are members of the League of Insurance Organizations of Ukraine (LIOU), specializing in risk insurance and participating in the Open Insurance project, in January and February 2018 collected UAH 1.7 billion of insurance premiums, according to the LIOU website. The largest share in the structure of gross insurance premiums is that of voluntary property insurance with UAH 1 billion (60%), voluntary personal insurance (excluding life insurance) with UAH 400 million (21.7%) and non-government compulsory insurance with UAH 200 million (14.3%). Gross insurance premiums for voluntary insurance in January-February 2018 amounted to UAH 100 million (4%).
Gross insurance claim fee payments over the period amounted to UAH 500 million. The largest share in the structure of gross insurance payments was that of voluntary property insurance with UAH 200 million (40.3%), voluntary personal insurance (except for life insurance) with UAH 200 million (34.7%), non-government compulsory insurance with UAH 100 million (24.2%) and voluntary responsibly insurance with UAH 40 million (0.7%).
LIOU also analyzed voluntary car insurance (KASKO), obligatory insurance of civil liability of vehicle owners (OSAGO) and voluntary medical insurance.
KASKO premiums of the Open Insurance project participants totaled UAH 289.2 million in January-February 2018. Gross payments in claims reached UAH 180.3 million. The level of settling the payments was 62.3%.
As for voluntary medical insurance, premiums amounted to UAH 272 million and gross payments in claims – UAH 162 million. The level of settling the payments was 59.6%.
OSAGO premiums reached UAH 156.4 million and payments in claims – UAH 110.6 million. The level of settling the payments was 70.7%.
The insurance companies participating in the Open Insurance project are Azinco, Alfa Insurance, Arsenal Insurance, ViDi Insurance, Globus, Euroins, Interexpress, Inter-plus, Naftogazstrakh, NIKO Insurance, PZU Ukraine, Providna, PRO100-Strakhuvannia, Raritet, Skarbnytsia, Ukrfinstrakh, UNIQA and USI.
The Open Insurance project was founded by the League of Insurance Organizations of Ukraine in 2008 with the aim of improving the standards for disclosing information on the activities of insurance market participants, publicly announcing financial indicators, observing the policy of transparent activities and access to information.
