The NBU has updated regulations for insurers, introducing new solvency requirements.

The National Bank has updated the requirements regarding the solvency and investment activities of insurers in accordance with the new law "On Mandatory Insurance of Civil Liability of Owners of Ground Vehicles" and with the aim of addressing current issues that have arisen during the state of martial law.

This is stated on the regulator's website.

The changes to the regulation specifically include:

• the possibility for insurers to consider technical reserves from reinsurance contracts covering military and political risks, concluded with non-residents – legal entities from foreign countries among the participants (shareholders, founders);
• clarifications regarding the consideration of the terms for restructuring Ukraine's state debt by replacing existing external state loan bonds (ESLB) with a package of new ESLB to include them in the total amount of acceptable assets for insurers;
• insurers considering, as part of acceptable assets for covering technical reserves, funds from basic and additional guarantee contributions to the centralized insurance reserve funds of the Motor (Transport) Insurance Bureau of Ukraine.

"It has also updated certain provisions of the regulation for their clear interpretation during practical implementation," the message states.

The regulation was approved by the decision of the Board of the National Bank of Ukraine on January 2, 2025, No. 1, and comes into effect on January 4, 2025.

Background. Previously, Mind reported that the National Bank updated the Strategy for macroprudential policy, which reflects the consequences of the full-scale invasion of Russia for Ukraine's financial sector, the new challenges faced by macroprudential policy, and the approaches of the National Bank to respond to these new challenges.