The Ukrainian insurance market is actively developing due to substantial investments into the insurance business made in recent years. The substantive volume of insurance premiums relates to voluntary property insurance and, in particular, insurance of financial risks.
According to the information, provided by the State Commission on Regulation of Financial Services Market of Ukraine, the gross amount of insurance premiums in 2008 has considerably (up to 40%) increased compared to the 2007.
The international financial crisis has significantly affected the Ukrainian insurance market, in particular, the most substantial decrease is observed in the income from automobile insurance and other types of property insurance in the fourth quarter of 2008, connected with the freeze in bank lending.
The income from bank insurance, insurance in corporate sector and some types of personal insurance is expected to fall in 2009, in view of decrease of purchasing capacity of individuals and increase of unemployment rate.
Nonetheless, the insurance market of Ukraine is still at the early stages of its development, namely, according to the experts opinions , only 10% of risks are insured in Ukraine. Thus, after overcoming the consequences of the crisis, the further growth of the market is expected.
The professional approach and experience of Konnov & Sozanovsky lawyers enable them to resolve any legal issues arising in connection with business activity of the Ukrainian insurance companies – clients of our firm. Given the foreign investments in this market, we are servicing the purchase of Ukrainian insurance companies and the creation of new insurance companies. The scope of services we provide to such clients is not limited to the standard one, which includes registration of the company, obtaining of necessary permits and licenses, advising on current legal issues. We developed a complex approach to clients' business needs, which encompasses elaboration of a scheme of business for the client in Ukraine as well as abroad.
The Russian Federation plans to accede to the WTO, and it anticipates new quality of relations with the world business community. Not every Russian businessman understands and cordially welcomes the opening of the doors for the foreign business. Thus, lots of discussions were generated by entry of foreign banks to the market of Russia. Likewise, there is an opposition to some bankers, considering it intolerable, the insurance companies are also against the entry of foreign competitors to the Russian market.
The regulation of foreign players at the insurance market of Russia has been discussed in connection with the entry of the first insurance companies with the foreign capital share (Zurich-Rus, AIG-Russia) to the Russian market long before the adoption of the legal acts in this sphere. It acquired its legislative interpretation in the than version of the Law “On Organization of the Insurance Business of the Russian Federation” of 1999. The further edition of this law as of December 10, 2003, which brought substantial changes concerning admission of foreign players to the Russian insurance market. Liberalization of the restrictions was largely attributable to the necessity for the Russian Federation to comply with its obligations undertaken under multilateral treaties to which it is the party, as well as due to the performance of the requirements for the accession to the WTO.
In the course of the last several years Russian insurance market has actively developed mainly due to the intense capital inflow, including the foreign capital.
Further development of the insurance market in Russia is stipulated by the economic development of the country. The number of the active insurance companies, which cannot stand the competition with stronger players of the market, is expected to reduce in 2009.
The high professional level and the required experience of Konnov & Sozanovsky’s lawyers allow efficient solution of the whole complex of legal issues arising in the work of the major Russian insurance companies. Taking into consideration foreign investments inflow to this sector, we render legal assistance in Russian insurance companies’ acquisition, and also in the establishment of new companies. The scope of services we provide is not limited to the standard one, which includes registration of the company, obtaining of the necessary permits and licenses, which are required for the insurance activity, advising on current legal issues. Our practice assumes a complex approach to the clients’ business structure establishment within the Russian territory and abroad.