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11:55
FINANCIAL SERVICES WATCHDOG: LAWS ON REGISTRATION OF NEW INSURERS TOO LIBERAL

Kyiv, August 4 (Interfax-Ukraine) – The State Commission for Regulating the Financial Services Markets believes that laws under which new insurance companies are registered are too liberal.

As Commission Chairman Viktor Suslov told journalists at a briefing on Tuesday, this is demonstrated by the fact that the commission has closed 23 companies since the beginning of the year, while the number of applications for the registration of new insurers is about that number.

"We were seeking, with due regard to the crisis, to obtain the right to introduce a moratorium on the registration of new financial establishments, which was once broadly discussed, but we failed to agree that decision with other ministries and departments, and we were forced to withdraw that initiative," Suslov said.

He said the commission is compelled to register more new insurance companies, despite the fact that, according to reports, 200 of the registered insurance company (as of July 1, 2009, there were 473 insurance companies in the register) collect a mere 1% of the insurance premiums on Ukraine's insurance market.

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