The NBU is working on a new mechanism to insure military risk.

The National Bank, together with the World Bank and the EBRD, is preparing a new mechanism to regulate military risk, which is planned to be presented no later than in the first quarter of 2024, the head of the National Bank, Andrii Pyshnyi, said.

He emphasized the importance of the earliest possible implementation of European directives into the norms of Ukrainian insurance, considering the recent decision to start negotiations on Ukraine’s accession to the EU. Therefore, the NBU is completing work on the development of normative legal acts necessary for the implementation of Ukraine’s new law, On Insurance, most of the provisions of which will enter into force on January 1, 2024.

The new regulations introduce risk-oriented, prudential supervision in Ukraine’s insurance market and improve the solvency requirements for insurers following Solvency I and Solvency II. Insurance companies will evaluate assets and liabilities under international financial reporting standards.