By KYIV. Oct 28 (Interfax-Ukraine) – The methodology of forming insurance reserves should provide for a more flexible approach to determining the currency of insurance in order to be able to calibrate the type of currency depending on the type of insurance reserve.
The National Association of Insurers of Ukraine made a corresponding proposal to the project prepared by the NBU "Methodology for the formation of insurance reserves."
"These changes will contribute to strengthening the solvency of insurers and will provide an opportunity to hedge currency risks," the report emphasizes.
In addition, insurers that are members of the association, in cooperation with actuaries, were proposed to add optional methods for calculating individual indicators when forming insurance reserves.
For the life segment, the association proposes to specify approaches using the best European practices.
According to the report, in general, the union supports this project, provided that the norms laid down in it become a transitional stage for the implementation of the new law on insurance, Solvency II, will contribute to the implementation of IFRS 17, and also be valid for at least several years.
"We are confident that the proposals provided, taking into account the practical aspects of the activities of insurers, will positively influence the final version of the regulations on the methodology for the formation of insurance reserves," the report says.
