UKRAINE: despite difficult working conditions, insurers ended 2022 with dignity

9 January 2023 —
Despite some decrease in GWP, the leading insurance companies ended 2022 with dignity in the war conditions, according to the report of the National Bank of Ukraine (NBU). At the same time, 2023 will also be a difficult year, and insurers should prepare for new challenges already now, Forinsurer writes.

In January-September 2022, insurers collected UAH 28.4 billion (~EUR 0.80 billion) of GWP and paid out UAH 9.5 billion (~EUR 0.26 billion), which is 25.4% and 29.3% less y-o-y, respectively. More than 40% of insurance premiums are traditionally generated by motor insurance (MTPL, Green Card, Motor Hull summed). During the period of military aggression, the share of these types in the market portfolio increased. The support driver for the insurance business was the Green Card segment, which grew by 76% during the period of hostilities compared to the same period of 2021.

In the third quarter, GWP amounted to about UAH 10.8 billion, and paid claims - to UAH 3.6 billion, which is 18.8% and 24.5% less than for the third quarter of 2021, respectively, and indicate a slowdown in the market decline.

"The insurance market is working. The war has become a catalyst that showed the real situation of each insurer. Financially stable companies continue their activities and are tested by the war", said the head of the NBU, Andriy Pyshny.

By the end of September 2022, the assets of insurers increased to UAH 71 billion. In addition, in the third quarter, insurance reserves rose to UAH 39.9 billion vs UAH 36.4 billion in the middle of the year and UAH 35.6 billion in September 2021.

* 1 EUR = 35.5611 UAH (September 30th, 2022)