The National Bank reminded that the opportunity for insurance companies providing life insurance services to obtain an exchange control license was realized thanks to the Act "On Currency and Foreign Exchange Transactions" in the framework of foreign exchange liberalization.
“Now, in order to minimize currency risks, health-conscious people that care about comfortable old age and children’s future well-being, will be able to conclude life insurance contracts in foreign currency, as well as receive payments in foreign currency,” the statement said.
Insurance companies’ right to carry out foreign exchange transactions will contribute to the Ukrainian insurance market development by increasing the attractiveness of products for end consumers, reaching new customers and reviving market competition.
The share of insurance in Ukraine’s GDP should increase from the current 1.4% to at least 2% by 2025, says in the Strategy for the Ukrainian Financial Sector Development by 2025, published on the website of the National Bank of Ukraine. According to the document, the level of acceptable assets in the structure of total assets of insurance companies in five years should not be less than 80% (as of September 30, 2019 - 73%).
Besides, by 2025, in order to create conditions for attracting long-term resources, it is planned to increase the share of life insurance in the total amount of net insurance premiums received from 10.9% to no lower than 20%.
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