The National Bank assessed Ukraine's transition to new OSAGO rules as excellent – First Deputy Head

The National Bank of Ukraine (NBU) described the transition to the new conditions of compulsory motor third party liability insurance (OSAGO), which came into force on January 1, 2025, as “excellent.” This was reported by the First Deputy Head of the NBU Kateryna Rozhkova in an interview with the Interfax-Ukraine agency.

“The process went great. It was smooth and transparent for all involved. Both the old policies (issued last year under the previous legislation) and the new ones are valid at the same time,” she noted.

Rozhkova emphasized that the Motor (Transport) Insurance Bureau of Ukraine (MTIBU) is well prepared in terms of corporate governance and internal processes.

“We do not see any difficulties at the moment. For a final assessment, we need to work under the new rules for at least a year. However, in my opinion, both the insurance market and vehicle owners have smoothly adapted to the new conditions,” she added.

Discussing the activities of MTIBU in the context of the new law on compulsory motor vehicle liability insurance, Rozhkova noted that the NBU has effectively become the regulator of MTIBU, making the bureau its supervised body.

Currently, MTIBU has a two-tier corporate governance structure. The NBU no longer serves as the Bureau's Coordination Council, but has the authority to approve and require replacement of senior management in the event of violations. MTIBU members elect their executive body, and the NBU reviews and approves these candidates, with the authority to require their dismissal if necessary.

In addition, mandatory reporting on the formation and use of funds, as well as an annual independent audit similar to banking standards, have been introduced. If funds fall below a critical level, MTIBU has the right to increase contributions from member insurance companies, but is required to report on the expenditure of funds.