Publication date: 11.07.2024
The procedure for obtaining an insurance licence
Insurance is an important component of the financial sector of Ukraine, ensuring financial stability and protecting the interests of individuals and legal entities. Obtaining an insurance licence is a necessary step for every insurance company. In this article, we will review the main aspects of the procedure for obtaining an insurance licence in Ukraine, the regulatory framework, requirements for applicants and the application procedure.
The regulatory framework
The process of obtaining an insurance licence in Ukraine is regulated by several key legal acts:
TheLaw of Ukraine "On Insurance":
- The main law regulating the activities of insurance companies sets out the requirements for organising and conducting insurance operations, the rights and obligations of insurers and policyholders, and the procedure for obtaining insurance licences.
TheLaw of Ukraine "On Financial Services and State Regulation of Financial Services Markets":
- Defines the legal framework for the provision of financial services, including insurance services, establishes requirements for financial institutions, the procedure for licensing and control over their activities.
TheLaw of Ukraine "On Licensing of Economic Activities":
- Regulates the licensing of economic activities, including insurance activities. It defines general requirements for licensees, the procedure for submitting and reviewing applications for licences, and the grounds for cancellation of licences.
TheCivil Code of Ukraine (CCU):
- Regulates contractual relations between insureds and insurers, defines the rights and obligations of the parties, and mechanisms for consumer protection.
Tax Code of Ukraine:
- Sets out the tax liabilities of insurance companies and the taxation of insurance operations.
National Commission for the State Regulation of Financial Services Markets (Natskomfinposlug):
- Regulatory authority that supervises and controls the activities of insurance market participants, establishes regulations, regulates insurance activities and imposes sanctions for violations of the law.
Types of insurance licences
There are several types of insurance licences in Ukraine, depending on the nature and scope of services provided:
General insurance licence:
- Permission to carry out activities related to the provision of general insurance services, such as property, liability, transport, accident insurance, etc.
Life Insurance Licence:
- A licence to provide life insurance services, including endowment insurance, pension insurance, etc.
Reinsurance licence:
- A permit to carry out reinsurance activities, including the transfer of part of the risks from one insurance company to another.
Requirements for applicants
In order to obtain an insurance licence, a business entity must meet a number of requirements set out in the legislation. The main requirements include:
Organisational and legal form:
- A licence to carry out insurance activities can be obtained by legal entities registered in accordance with the laws of Ukraine.
Authorisedcapital:
- The minimum amount of the authorised capital of an insurance company must meet the requirements set by the National Financial Services Commission. The capital must be fully formed at the time of application.
Material and technical base:
- The business entity must have the necessary material and technical base to carry out insurance activities, including office space, equipment, software, etc.
Qualifications of managers:
- The managers of the insurance company must have appropriate education, experience in the insurance sector and an impeccable reputation. Their qualifications must meet the requirements set by the National Financial Services Commission.
No criminal record:
- Managers and owners of an insurance company must not have any convictions for serious crimes, crimes against property, life and health, as well as other crimes provided for by law.
Financial stability:
- An insurance company must ensure financial stability and solvency, and meet liquidity and capital requirements.
Procedure for applying for a licence
The procedure for applying for an insurance licence includes several stages:
Preparation of documents:
- The applicant must prepare a package of documents required to obtain a licence. This package includes:
- An application for a licence in the prescribed form.
- Copies of constituent documents.
- A copy of the state registration certificate.
- Documents confirming the availability of the authorised capital.
- Documents confirming the compliance of the material and technical base.
- Qualification documents of managers.
- Certificate of no criminal record for managers and owners.
- An application for a licence in the prescribed form.
Submission of theapplication:
- The application together with the package of documents is submitted to the National Financial Services Commission. Documents can be submitted in person, by mail or electronically through specialised portals.
Consideration of theapplication:
- The National Financial Services Commission considers the application and checks the applicant's compliance with the established requirements. This includes verification of the submitted documents and a possible on-site inspection at the place of business.
Decision-making:
- Based on the results of the inspection, the National Financial Services Commission makes a decision to issue or refuse to issue an insurance licence. In the event of a refusal, the applicant is provided with a justification of the reasons for the refusal and recommendations for eliminating deficiencies.
Obtaining a licence:
- In case of a positive decision, the applicant receives an insurance licence, which entitles him or her to conduct the relevant operations. The licence is issued in the prescribed form and registered in the relevant register of the National Financial Services Commission.
Procedure for monitoring compliance with licence conditions
The National Financial Services Commission continuously supervises insurance companies' compliance with licence conditions. This includes:
Regular inspections:
- The National Financial Services Commission conducts scheduled and unscheduled inspections of insurance companies to assess their compliance with the established requirements and standards.
Reporting:
- Insurance companies are obliged to submit regular reports to the National Financial Services Commission on their financial performance, liquidity position, fulfilment of insurance obligations, etc.
Monitoring of activities:
- The National Financial Services Commission monitors the activities of insurance companies, analyses their financial performance and decides on the application of enforcement measures in case of violations. Legal marketplace "CONSULTANT" will help you solve any problem! All the necessary services at any time: analysis of documents, legal analysis of the situation, legal analysis of the situation, written advice, verification of documents by a lawyer, legal analysis of documents, legal opinion of a lawyer, legal opinion of a lawyer, legal analysis. Are you looking for an online lawyer or a lawyer online? Choose CONSULTANT - a lawyer is always at your side!
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