Updated requirements for the activity of insurance intermediaries

In order to improve the quality of the insurance market in Ukraine and bring it closer to European standards, the NBU introduces new requirements for the registration and operation of insurance intermediaries.

These changes were made by NBU Board Resolution No. 109 dated September 5, 2023. The new requirements entered into force on September 8, 2023, and the updated Regulation will be effective from January 1, 2024.

Changes in the regulation of insurance intermediaries in Ukraine take place in two stages:

1. The first stage, starting from January 1, 2024, provides for the introduction of the updated Regulation on the registration of insurance and reinsurance brokers and the conditions for the conduct of mediation activities in the field of insurance, which meets the new requirements of the Law "On Insurance", which comes into force from January 1, 2024.
2. The second stage of reforms, starting from January 1, 2025, provides for a conceptual update of approaches to the regulation of intermediary activity in the insurance sector, in accordance with the requirements of Directive 2016/97/EU of the European Parliament and the Council of the EU dated January 20, 2016 on the sale of insurance products. Among the key innovations will be the introduction of regulation, registration and increased requirements for qualification and training of all categories of insurance intermediaries, including insurance agents and employees of insurers who sell insurance products.

Among the specific changes introduced at the first stage, we can highlight:

• Clarification of the list of insurance intermediaries subject to the new requirements, including natural persons - entrepreneurs as insurance agents.
• Expanding the powers of representative offices of non-resident brokers regarding the enrolment and transfer of insurance (reinsurance) premiums to the main office of the non-resident broker.
• The right to exclude persons related to the aggressor country from the state register of insurance and reinsurance brokers.
• Establishing fixed deadlines for brokers to submit questionnaires to the National Bank (until October 30, 2023) and obligations to bring their activities into compliance with the requirements of the Regulation (until December 31, 2023).
• It is important to note that in the second stage, even more significant changes are planned in the regulation of insurance intermediaries, including increased requirements for their qualifications and training.