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10:12
LIOU STRONGLY RECOMMENDS INSURERS NOT TO RECEIVE LICENSES ON OBLIGATORY PROPERTY RISK INSURANCE UNDER AGREEMENTS ON PARTICIPATION IN CFF

Kyiv, July 29 (Interfax-Ukraine) – The League of Insurance Organizations of Ukraine (LIOU) has said that it is economically inexpedient to introduce obligatory property risk insurance under agreements on participation in the Construction Financing Fund (CFF).

The league said that it repeatedly declared this at briefings for journalists, at meetings of the parliamentary committee for finance and banking activities, and in working groups at the regional development and construction ministry and at the state commission for financial service market regulation.

The league has asked the state authorities and insurance market players to hold a roundtable to discuss the issue, the result of which should be a statement by the professional associations on the insurance market on the inexpediency of receiving licenses for the above-mentioned type of insurance and the suspension of a cabinet resolution of July 22, 2009 on the approval of the procedure for obligatory property risk insurance under agreements on participation in the Construction Financing Fund, which could lead to negative consequences on the insurance market.

The league also said that it is inexpedient to further amend these resolutions, as the law clause on the financial and credit mechanisms for property management, which regulates obligatory property risk insurance, does not protect the interests of insurance service consumers and could lead to negative consequences on the insurance market.

The league asked its members not to apply for licenses for this type of insurance.

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