UKRAINE: Green Card GWP grew by almost 27% y-o-y in 2019

19 March 2020 —
Total number of Green Card policies in 2019 reached 1.08 million units (+43.6% y-o-y). GWP of the segment increased by 26.8%, to UAH 1.63 billion (~EUR 61.7 million) vs. UAH 1.29 billion (~EUR 40.7 million) in 2018, according to the report of the Motor Transport Bureau of Ukraine (MTIBU).

The number of settled Green Card claims reached 5,953 and worth more than EUR 15.4 million, reflecting a 15.5% increase y-o-y in terms of settled claims number and 32.2% more in terms of the amount paid.

The above mentioned segment results for 2019 confirm economic efficiency of automated checks - in February last year the State Border Service of Ukraine started to verify the availability and validity of vehicle owners' Green Card policies when crossing the border by vehicles with Ukrainian license plates, as well as internal MTPL policies for such vehicles entering the country.

The process of checking and the verification are done automatically. MTIBU noted that during a year after the introduction of the automated inspection system, the cases of presenting fraudulent insurance policies almost disappeared, and the attempts to cross the border without valid Green Card certificates have been minimized.

"This year we will introduce a new black-and-white format of the insurance certificate letterhead, that will be the first step towards an e-Green Card policy. MTIBU is now working on this issue and we expect that using a new certificate format will be possible for Ukrainian vehicle owners starting July 2020, when this innovating project will start to work within the whole system", said Vladimir SHEVCHENKO, the General director of MTIBU.


Domestic MTPL has also been displaying an uptrend. In 2019, the total number of MTPL contracts exceeded 8 million units (+3.7% y-o-y) for the first time in the last 5 years, and GWP amounted close to UAH 5.1 billion (~EUR 193 million), which is 13.5% more y-o-y.

The number of domestic MTPL claims paid increased by 16.2% (140 thousand claims), and the paid claims' total amount grew by 19.5%, to UAH 2.5 billion (~EUR 94.6 million). The share of claims paid for property damage reached 94%, while claims paid for the damage to life and health accounted for the rest of 6%.

Also, in 2019, the number of e-MTPL policies exceeded 1.2 million units (15% of the total MTPL contracts) and the associated GWP reached UAH 929.7 million (~EUR 35.2 million).

Besides e-policy, the Ukrainian MTPL market benefits from other successfully operating digital services, including:
  • the electronic European accident statement;
  • the MTIBU system of electronic communications with claims adjusters and experts;
  • the system of digital communications with foreign insurers and the Bureau;
  • electronic personal online account for recipients of regulatory payments from the Bureau;
  • the electronic document management system of the Bureau has been launched in a test-mode.

As Vladimir SHEVCHENKO explained, "the strategic focus of the MTPL market and MTIBU is to increase the level of protection for the victims of road accidents, as well as to get comprehensive improvement of customer service and system digitalization of the industry".

Some important measures successfully taken in 2019 to achieve those goals, as mentioned by SHEVCHENKO, were:
  • increasing the maximum amount of payments (limits) per a victim by 30%: to EUR 4,900 for property damage and up to EUR 9,800 for damage to life and health;
  • reducing the average claim settlement term by 11 days, to 88 days. More than half of the 51 insurers members of the Bureau, settle the payments (for property damage) within 90 days from the accident date, while 8% of them within 60 days;
  • decreasing the number and volume of complaints against MTPL insurers by 11% (1,813 complaints in 2019 vs 2,039 complaints in 2018). The largest part of complaints (66%) was related to delays in payment of insurance compensations, although their number also decreased by 23%.

For 2020, amendments to several legislative acts that regulate the procedure of controlling availability of MTPL policies are planned. In order to improve the protection of accident victims, it is planned to launch a system for handling complaints against insurers (MTPL ombudsman), as well as to formulate standards for market behavior of MTIBU insurers, in particular, for compliance with conditions of compensation payments and fair relations between insurers and victims, and conduct certification of business processes at MTIBU based on ISO 9001 standards, as the Bureau informed.


EUR 1 = UAH 26.42 (as of 31.12.2019)
EUR 1 = UAH 31.71 (as of 31.21.2018)

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