The draft regulation was prepared in accordance with international experience and contains the structure of acquisition expenses, expenses for claim settlement and postponed acquisition costs. It also defines the procedure of formation and accounting of technical reserves for non-life insurance (reserve of unearned premiums, reported but not paid claims, reserve of incurred losses, which were not reported, reserve of catastrophes, reserve of loss fluctuations). The regulation establishes requirements for insurers to make liability adequacy test (LAT) on the reporting dates, as well as adequacy test of reserves (reserve of claimed but not paid losses and reserve of losses incurred, but not reported) as of the previous reporting dates (run-off test) .
According to ZALETOV total amount of technical reserves, formed by insurers under risk insurance agreements, as of March 31, 2018 exceeded UAH 13.7 billion* (+10.7% than a year ago). In the structure of assets, representing technical reserves of insurers, 59.5% is owned by deposits and assets on current bank accounts. The share of subrogation rights to reinsurers is 18.6% of technical reserves, and the share of property is 7.4%.