1993 – 1997
This was the time of initial market reforms, privatization, financial and stock market formation in Ukraine. The Government approved the first document aimed at formation of the insurance services market – “Decree of the Cabinet of Ministers of Ukraine “On Insurance”. The Air Code of Ukraine was drafted. The system of state supervision over insurance activity in Ukraine was created, the state register of insurers was developed, and licensing of insurance activity was initiated.
17th February 1993 was the official date of BUSIN registration (the name of the company “BUSIN” derives from the names of two of the organization’s founders: the first private “Busol” Airlines Company and “Sinko” Insurance Company). BUSIN received a license for insurance activity. The authorized capital of the company was equal to 5 000.00 US Dollars in National currency. The Pool of Air Insurers of Ukraine was founded, and our company initiated its foundation, standards for aviation insurance and reinsurance were written at this time. BUSIN established first contacts with the international insurance market; the first optional Contract of air risks reinsurance was concluded with the broker Bowring Aviation, Marsh & McLennan Group.
The Cabinet of Ministers of Ukraine adopted the Regulation № 1083 “On procedure and conditions for obligatory aviation insurance”. Our company offered a suggestion and worked on improvement of normative insurance documents of Ukraine aimed at their maximum adaptation to international standards of aviation insurance.
In 2000 BUSIN extended the Contract on obligatory re-insurance of air operator civil liability and the first Contract on re-insurance of hull aviation risks was concluded in the international market with Marsh Company, Aviation Division.
At the beginning of 2000 the registered authorized capital of the company was equal to UAH 2 500 000.00 (approximately 500 000.00 Euro), the assets have increased and they were better protected from inflation processes expected in Ukraine.
The tragic events of September 11, 2001 shocked the world insurance market and resulted in lingering crises. The end of the year was a terrible ordeal for the young Ukrainian company but it withstood it with honour.
BUSIN ontinued to work on improvement of the level of insurance services, the portfolio of company risks became more varied, and our team took an active part in preparing legislative documents related to insurance activity regulation and it’s unification with European standards.
In June 2002 the General Meeting of the Joint-Stock Company decided to increase the authorized capital up to UAH 5 625 000.00 (approximately € 1 100 000.00).
On 3rd February, 2003, upon the decision of the IUAI Executive Committee (International Union of Aviation Insurers), BUSIN became the first and only representative of Ukraine in the international organization which is the principal coordinator of the interests of the air and space risks insurance market.
Years of Ukrainians’ world achievements in different spheres of life – science, art, sports – and great political “shocks” in Ukraine.
The dynamic development of BUSIN continued, the company employees did their best to extent the range of clients and to increase the number of insurance products – considerable development of motor transport insurance was seen, other types of insurance are also developed. BUSIN increased the authorised capital by UAH 4 500 000.00 and after that the authorized capital was equal to UAH 10 125 000.00 (approximately € 1 540 000.00), and in such a way it fulfilled legal demands to the minimum amount of the paid authorised capital of the company. On 20th January, 2004 the General Meeting of the company decided to issue shares and the authorised capital was increased due to reinvestment of dividends.
The company had concluded the obligatory Aircraft Third Party, Passenger, Passenger Baggage and Cargo Legal Liability Treaty in the international insurance market with the largest volume in the history of Ukraine, and the Aircraft Hull All Risks Reinsurance Treaty. Many world-famous insurance leaders and dozens of Lloyd’s syndicates participated in our Contracts. Such contractual relations proved the insurers’ high level of worldwide, real integration with the international insurance market and professionalism of our company.
BUSIN was nominated as Laureate of the “Ukrainian Financial Olympus” National Program and was given an award in the “Aviation Insurance” category.
The Ukrainian authorities moved towards European integration, our country began the process of entering the World Trade Organization (WTO)?, and adaptation of the national regulative regime to international standards.
In 2006 the obligatory reinsurance contracts were renewed for 2007, the company improved its work in different spheres; we won the tender for complex insurance of AEROSVIT Airlines company risks – leader of Ukrainian air services.
The analysis of the company’s financial statistics showed that BUSIN held the leading position in the Ukrainian insurance market and entered the year 2007 feeling inspired.
BUSIN, as always, continued to execute perfectly our commitments to customers partners and reinsurers. Both Aircraft Third Party, Passenger, Passenger Baggage and Cargo Legal Liability Obligatory Reinsurance Treaty and Aircraft Hull All Risks Obligatory Reinsurance Treaty are annually renewed on the international insurance market. During 2007-2009 almost 15 million UAH of the insurance indemnities were paid to the company’s clients.
According to the results of 2007 ignificant progress was achieved in diversifying our portfolio of insurance products: the motor insurance portfolio was increased by more than 100%, property insurance portfolio by 135%, athe program of financial risks insurance was launched together with banks and leasing companies.
In 2008 company focused on diversifying the portfolio of insurance products, as almost 20% of insurance services consisted of property and motor insurance and our participation in the Ukrainian Nuclear Insurance Pool (UNIP). In 2008 BUSIN also increased the Statutory fund by 2.4 times.
Despite the global financial crisis and the collapse of the insurance market, BUSIN managed in 2009 to keep the leading position in the domestic insurance market and to achieve significant business growth by expanding its customer base, introducing new insurance products and the effective marketing policy of the company’s management.
Expert Rating RA confirmed in 2007-2008 “а+” grade stability rating of BUSIN (“uaA+” grade on national scale). In 2009 Expert Rating RA increased BUSIN’ stability rating to “аa” grade (“uaAA” grade on national scale). Such a high stability rating means that the company has a very high probability of withstanding the impact of negative factors.
International audit is annually performed by BDO Balance Audit according to International Financial Reporting Standards (IFRS).
Despite the negative impact of financial crisis on the insurance market, BUSIN remains the Leader of aviation insurance in Ukraine and at the same time introducing new products – Bankers Blanket Bond insurance is launched, agent sales of Motor Third Party Liability Policies is increased.
BUSIN also holds the leading position in Reinsurance on the Ukrainian market providing to the local and foreign Insurers high level retrocession services under Obligatory Reinsurance Treaty as well as on the own retention.
Company continues to execute the strategy of integration into the international insurance market. Both Aircraft Third Party, Passenger, Passenger Baggage and Cargo Legal Liability Obligatory Reinsurance Treaty and Aircraft Hull All Risks Obligatory Reinsurance Treaty are renewed, top managers and executives take part in international conferences and seminars. Financial results of 2010 year is confirmed by BDO Balance Audit according to International Financial Reporting Standards (IFRS).
The rating agency Expert Rating in 2010 year confirmed the stability rating of BUSIN Insurance company on its own scale on the grade of AA (the equivalent of a national scale – uaAA). Stability rating of the insurer on the international scale is BBB (good stability rating).
New Air Code was adopted by Supreme Council of Ukraine on May 2011. Our Company will take part in discussion and making recommendations to adapt the existing state regulations of aviation insurance to the requirements of new Air Code.