In Ukraine, the MTIBU centrally administers all Green Card claims and operates a dedicated financial mechanism that ensures uninterrupted settlement of cross-border motor claims, even under extremely challenging conditions.

Since the beginning of the war, the Ukrainian Green Card market has more than doubled, and Ukraine is now among the top five countries in terms of the number of Green Card cross-border accidents. Despite a significant increase in claims processing, the system continues to operate reliably, which is quite remarkable under current circumstances.

XPRIMM: How did the full-scale war reshape Ukraine’s Green Card insurance market?

Oleksandr Salaychuk: The full-scale war fundamentally reshaped Ukraine’s motor insurance market, particularly its international segment – Green Card insurance. Beginning in 2022, the market experienced unprecedented growth driven by the mass Ukrainian refugees driving abroad. That year, the number of issued Green Card certificates more than doubled compared with 2021, increasing by 113.5% and exceeding 1.6 million contracts. Although market volumes slightly declined in 2025 to approximately 1.4 million contracts, Ukraine remains among the top five “exporters” of cross-border accidents. In 2025 alone, nearly 15,000 insured events involving Ukrainian vehicles were recorded outside the country. Despite this high level of cross-border claims activity, the Ukrainian Green Card market has demonstrated a consistently high level of reliability – compensation and indemnity payments are settled fully and on time.

XPRIMM: What explains the high reliability of the Ukrainian Green Card market under wartime pressure?

Oleksandr Salaychuk: The key factor behind this resilience is Ukraine’s centralized model for administering Green Card claims – the Project for Administration of the Ukrainian Green Card (PAUGC). This system is a special model within the international Green Card system, concentrating claims administration, financial guarantees, and payment processes at the bureau level instead of dispersing them among individual insurers. Since 2013 the system has been administered by the Motor (Transport) Insurance Bureau of Ukraine, which assumed full responsibility for managing foreign Green Card claims.

XPRIMM: What challenges existed in the Ukrainian Green Card market before PAUGC was introduced?

Oleksandr Salaychuk: Before PAUGC, the Ukrainian Green Card market faced serious operational challenges. In 2011-2012, due to the insolvencies of two insurers with large market shares, the number of guarantee calls issued to the Ukrainian Bureau by foreign claims-handling parties exceeded 1,000 annually. Payment delays were significant, with average settlement periods reaching 174 days in 2010, 110 days in 2011, and 94 days in 2012. Low financial discipline among insurers and the high number of guarantee calls against the Bureau could seriously undermine trust in the Ukrainian insurance market as well as pose reputational risks.

XPRIMM: How does the PAUGC model work in practice?

Oleksandr Salaychuk: To mitigate these risks, a new claims administration model was introduced on 1 January 2013. Under PAUGC, the Ukrainian Bureau accumulates net written premiums in the Bureau’s accounts on a monthly basis. The accumulated funds are used to pay Green Card claims on behalf of member companies. The Bureau centrally administers all Green Card claims, enabling control over and assurance of timely and complete compensation. The Bureau also regularly monitors insurers’ solvency to ensure they can meet obligations under international Green Card agreements. Accumulated funds are also used to pay reinsurance premiums under the Green Card reinsurance programs with top reinsurers.

XPRIMM: What measurable results has the centralized model delivered?

Oleksandr Salaychuk: The impact of the centralized model is reflected in key performance indicators. Over the past five years, the Bureau had no delayed payments despite processing approximately 15,000 foreign claims per year during 2022–2025. The average claims settlement period has been reduced to up to 25 days, compared with more than 100 days before PAUGC. As a result, cooperation with Ukrainian Green Card market players now provides foreign counterparts with high confidence, ensuring predictable, timely, and complete compensation when an accident is caused by a Ukrainian Green Card policyholder.

XPRIMM: How did PAUGC contribute to stability during wartime and economic disruption?

Oleksandr Salaychuk: PAUGC proved particularly important after the outbreak of the full-scale war. When millions of Ukrainians were temporarily residing abroad and domestic economic conditions were unstable, the centralized claims administration model ensured uninterrupted fulfilment of international obligations and demonstrated the reliability and financial resilience of Ukrainian insurers. For Ukrainian insurers, the model significantly reduces administrative burden: they are not required to administer Green Card claims independently, maintain dedicated claims-handling personnel, interact directly with foreign claims handlers, or seek extra expertise for complex claims. The Bureau assumes all operational, financial, and coordination functions related to Green Card claims processing. This model enables the Ukrainian insurance market to remain resilient under stress and to respond effectively to emerging challenges.

XPRIMM: What role has digital transformation played in strengthening the Green Card system?

Oleksandr Salaychuk: A major milestone was the introduction of electronic Ukrainian Green Cards in 2022, driven by wartime constraints and the need for rapid, remote issuance and distribution. From 1 January 2025, the presence of Green Cards on electronic portable devices has been fully recognized in all member countries of the Green Card system.Today, 100% of GC certificates in Ukraine are issued electronically. Drivers can present certificates in PDF format, while insurers and the Bureau benefit from improved monitoring, reduced fraud risk, and enhanced protection for both policyholders and victims abroad.

XPRIMM: Why is Ukraine’s Green Card model of international relevance?

Oleksandr Salaychuk: Ukraine’s experience demonstrates how the firm control over reimbursement processes similar to our centralization of Green Card claims processing, enduring financial guarantees, and deep digitalization can significantly enhance the resilience of the cross-border motor insurance system – even under extreme conditions. PAUGC provides a compelling case study for countries seeking to strengthen the credibility and operational efficiency of their insurance markets in front of emerging challenges. Several countries have already adopted successfully certain elements of this approach.