National Commission for Regulation of Financial Services Markets starts recovery of Ukrainian Security and Insurance Company to settle accounts with consumers

National Commission for Regulation of Financial Services Markets starts recovery of Ukrainian Security and Insurance Company to settle accounts with consumers
February 10, 2016.

Kyiv, February 10, 2016. Trust on which the financial services market is grounded should be the main principle of work. Therefore, the National Commission for Regulation of Financial Services Markets launches the recovery program for Ukrainian Security and Insurance Company aiming at settling accounts with consumers who wait for payments, stated Denys Yastreb, member of the National Commission for Regulation of Financial Services Markets at a press briefing at Ukraine Crisis Media Center. According to him, a recovery procedure on the principles of partnership  was offered to the company in January. On February 23 control of economic activities will begin identifying financial issues. Starting March 15, the National Commission will be ready to decide on approval of the plan to restore financial stability of the company. “This plan includes the following elements: a description of the current situation, a detailed budget for the period of taking measures to restore financial stability, a list of persons who should be repaid the current debts and the debts arising during this plan,” said Denys Yastreb. He predicted that in September the recovery procedure will be completed, and the company will operate normally.

According to Sergiy Parfeniuk, general director of Ukrainian Security & Insurance Company, in March last year, the situation with settling debts was critical. Throughout 2015, some measures were taken to address the problem, the company revised the structure of its expenditure and the structure of the insurance company portfolio, informed Sergiy Parfeniuk. “Despite the drop in the volume of insurance premiums in 2015, the company maintained the level of insurance payments. In 2014, Ukrainian Security and Insurance Company paid out insurance benefits for the amount of about 24 million hryvnias; in 2015, payments totaled approximately 25 million hryvnias. Last year about 2.5 thousand consumers received payments. On average, the company paid about 2 million hryvnias per month,” informed Sergiy Parfeniuk. However, during this period the company has not managed to fundamentally resolve the issue of insurance settlement payments. That is why the company requested the National Commission for State Regulation of Financial Services Markets to provide the recovery action plan. He noted that compulsory insurance of the civil liability comprises 100% of company’s debts. “It is socially important insurance today. And it is impermissible that people injured in road traffic accidents remain without any insurance payments,” said Sergiy Parfeniuk.

Now the company focuses on property and personal insurance. The work continues in those areas that will provide sufficient financial resources to pay the debts of previous periods, noted Sergiy Parfeniuk. “In 2014, the so-called motor risks, that is compulsory insurance of the civil liability and hull insurance comprised 70%, whereas in 2015, it was reduced down to 26%. These are the main measures that we are introducing,” noted the general director of Ukrainian Security & Insurance Company. According to his preliminary estimates, the company’s creditor indebtedness is 15 million hryvnias.

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