UKRAINE: MTPL market remained stable amid increasing GWP in the first quarter

14 May 2020 —
Despite the difficult working conditions associated with the pandemic, the MTPL market of Ukraine remained stable in the first quarter of 2020. Total number of contracts concluded in this period exceeded by 0.5% the level of 1Q2019, as the Motor (Transport) Insurance Bureau (MTIBU) reports.

GWP increased by 20%, to UAH 1.3 billion (~EUR 43 million), while the paid claims increased as well by 15.1%, to almost UAH 680.3 million (~EUR 22.5 million). There was also an increase of e-MTPL contracts - for the first three months of the year, the share of electronic policies in total number of concluded MTPL contracts was close to 30%.

As the MTIBU Director General Volodymyr SHEVCHENKO noted, digitalization of MTPL segment is especially important during quarantine, as it helps to maintain insurers' operations and possibility of full customer service.

In contrast to the domestic MTPL, the number of Green Card policies in 1Q2020 decreased by 2.25% y-o-y due to restrictions for cross-border movement. GWP in this segment dropped by 21.3%, to UAH 356.8 million. However, at the same time, the amount paid under settled claims exceeded last year's level by 78.9%.

In 1Q2020, the payments made by MTIBU from its guarantee fund to the victims of road traffic accidents increased by 9.1% y-o-y. The share of payments to owners of uninsured vehicles in total paid amount reached 60.9% (UAH 32.3 million), the number payments going up significantly - by 17.4% y-o-y.

According to Volodymyr SHEVCHENKO, some measures were introduced to support MTPL insurers during the crisis, such as simplifying the procedure of documentation receipt, relaxation in the requirements of financial monitoring, introduction of legislative amendments to facilitate their work, active digitalization and others.

*EUR 1 = UAH 30.2564 (1 April 2020, National Bank of Ukraine)