UKRAINE: "split" law was the key market event in 2019

6 January 2020 —
According to PZU Ukraine group, the key event in 2019 on the Ukrainian insurance market was the signing of the "split" law - the transfer of the regulator's functions of the non-banking financial sector to the National Bank.

This law brings the local insurance market closer to Solvency II standards, its fulfillment aligning the market closer to European legislation direction. The new requirements for financial companies will also lead the country to the expected changes of the market and economy.

PZU Ukraine also noted digitalization as the innovation driver of the most important local segments, such as motor insurance. The company is the market leader in terms of e-MTPL policies sold (17% of all e-MTPL policies in the country).

The company underlined that fake MTPL, Green Card and travel policies are one of the local market problems, and digitalization comes as a solution to reduce the risk of buying a falsified insurance policy.

PZU Ukraine believes that in 2019 life insurance market saw "a fairly high positive trend at the level of 20%".

According to the 3Q2019 results, PZU Ukraine Life ranked 4th in TOP 5 life insurers of Ukraine in terms of GWP (11.25% share). PZU Group noted that as far as today, insurance reserves of life insurers already exceed the total amount of bank deposits of the entire country population, which indicates improved public confidence in this insurance type. However, so far only 700 thousand of the local citizens own universal life insurance policies, and that gives a great potential for future development, writes Forinsurer.