Alexander ZALETOV, Member of the National Commission for State Regulation of Financial Services Markets of Ukraine, has described the situation on the local insurance market as "a perfect storm". According to him,"at the same time several serious risks materialized, such as: a revolutionary change of state power; hostilities in the Eastern part of the country, where it is already impossible for companies to maintain insurance activities; the devaluation of the local currency (UAH) over 300%; growth of inflation rate over 25%; cash withdrawal from the banks of about 30% of retail deposits and the general deterioration of business enterprises".
The types of insurance that declined the most in terms of gross written premiums: Property insurance -15%; Fire risks and risks of natural disasters -17%; Accidents -32.7%; Third party liability -20.8%.
In 2014, the growth of gross written premiums is recorded on the insurance for financial risks segment- 12.5%; CARGO and baggage - 20.9%; Green Card insurance - 38.8% and Health insurance - 9.3%.
According to Alexander ZALETOV, the insurance business is still not profitable due to the decline and the unfair competition on the market (high level of commission and low rates). On the market there are hidden bankruptcies (in most undercapitalized insurers), which reinforces the crisis phenomenon on the market.
At the end of 2014, 25 insurance companies left the market: 20 non-life and 5 life insurers.
Access www.xprimm.com and download the FY2014 Ukraine insurance market statistics.
Market portfolio (in EUR and UAH):
- Growth rates
- Life and Non-Life market rankings
- Market shares