The National Bank of Ukraine canceled all insurance licenses and excluded one insurer from the State Register of Financial Institutions, and canceled part of the licenses of another insurer.
Regarding cancellation of all licenses and exclusion from the register
“TEKOM” PJSC (EDRPOU 25050281) canceled all licenses for insurance activities and was excluded from the State Register of Financial Institutions on the basis of its request*.
We will remind January 16, 2023 The National Bank granted permission to PJSC SC “TEKOM” to terminate insurance activities (without termination of the legal entity).
According to the latest 2022 reports submitted by PRSC TEKOM, as of December 31, 2022, the company’s insurance premiums amounted to UAH 23,661.4 thousand, the value of assets was UAH 353,871.7 thousand, and insurance reserves were UAH 3,429.3 thousand hryvnias The company’s market share in terms of insurance premiums was 0.07%.
Regarding the cancellation of part of the licenses
PRAO “ODESKA REGIONAL INSURANCE COMPANY” (EDRPOU 31277606) revoked (cancelled) part of the licenses for the provision of financial services (except for professional activities on the securities market) on the basis of the application submitted by the insurer, guided by the special order of revocation (cancellation) of the license (licenses) for carrying out insurance activities**.
PRAT “ODESKA REGIONAL INSURANCE COMPANY” canceled licenses for:
- implementation of voluntary cargo and baggage insurance (luggage);
- mandatory liability insurance of the subjects of the transportation of dangerous goods in case of negative consequences during the transportation of dangerous goods;
- voluntary financial risk insurance;
- voluntary third-party liability insurance (except civil liability of owners of land transport, liability of owners of air transport, liability of owners of water transport (including liability of the carrier);
- voluntary insurance against fire risks and risks of natural phenomena;
- voluntary property insurance [крім залізничного, наземного, повітряного, водного транспорту (морського внутрішнього та інших видів водного транспорту)]cargo and baggage (luggage);
- mandatory personal insurance against transport accidents;
- mandatory civil liability insurance of business entities for damage that may be caused by fires and accidents at high-risk facilities, including fire-explosive facilities and facilities where economic activity may lead to environmental and sanitary-epidemiological accidents character;
- voluntary accident insurance;
- mandatory insurance of the subject of the mortgage against the risks of accidental destruction, accidental damage or deterioration.
According to the latest 2022 reports submitted by ODESKA REGIONAL INSURANCE COMPANY, as of December 31, 2022, the company’s insurance premiums amounted to UAH 2,129.4 thousand, assets on the balance sheet – UAH 108,854.6 thousand, insurance reserves – 32 UAH 215,000, the company’s market share in terms of insurance premiums is 0.01%. In the 12 months of 2022, the volume of the insurer’s activity decreased by 86% compared to 2021.
Such decisions were made by the Committee on Supervision and Regulation of Non-Banking Financial Services Markets on April 17, 2023.
* In accordance with Clause 556 of Chapter 67 of Section XI of the Regulation on Licensing and Registration of Financial Services Providers and the Conditions for Their Conduct of Financial Services Activities, approved by the Resolution of the Board of the National Bank of Ukraine dated December 24, 2021 No. 153 (as amended), the insurer within 30 calendar days after completion of the plan for the termination of insurance activity applies to the National Bank of Ukraine with a request to cancel (revoke) the last license (last licenses) for carrying out insurance activity and to exclude it from the State Register of Financial Institutions.
** According to clause 189 Resolution of the Board of the National Bank of Ukraine “On regulation of the activities of non-bank financial services market participants, non-bank financial groups, payment market participants, collection companies and legal entities that have received a license to provide collection services to banks” dated March 6, 2022 No. 39 (with amendments) (hereinafter – Resolution No. 39) during the period of martial law in Ukraine, the insurer has the right to use the special procedure for revocation (cancellation) of the license (licenses) for carrying out insurance activities, provided for in clauses 1810 – 1817 Resolution No. 39.