By KYIV. Dec 22 (Interfax-Ukraine) – The League of Insurance Organizations of Ukraine (LIOU) and the Insurance Business association on December 22 signed a memorandum of association.
According to the LIOU, the new association will be the most numerous in the insurance market of Ukraine (50 participating insurance companies).
In the first nine months of 2022, insurers that are members of the LIOU and the Insurance Business association collected more than UAH 4 billion in insurance premiums and paid out more than UAH 1 billion in insurance compensation.
As noted, one of the tasks of the new association is the maximum consolidation of the national insurance market. Insurance companies, associations of market participants, associations protecting the rights of consumers of insurance services, professional associations engaged in insurance-related activities (intermediaries, experts, etc.) will be able to join it.
In addition, it is reported that the plans of the new structure are to expand its functionality in comparison with the organizations that signed the memorandum. In particular, there are opportunities for creating an arbitration court, the formation of various funds during the merger, the development of rules and standards of professional ethics for insurers, as well as other tools for voluntary regulation of the rules of market behavior of participants.
"The merging of our associations is, first of all, a powerful signal for all stakeholders that insurers have a great ambition to develop, because the potential is significant, but it is not used properly," emphasized Viktor Berlin, the president of the LIOU.
"We strive to promote sustainable development and strengthening the role of insurance in ensuring the socio-economic growth of Ukraine. Insurance is long money in the country’s economy, and this resource should work in the interests of society. Among our key tasks are the protection and representation of the legitimate interests of market participants, promoting the growth of the business of insurers, including through the improvement of the regulatory framework, the establishment of constructive cooperation with the National Bank of Ukraine and state authorities, the public, and consumers," he said.
