The current legislation of the Ukrainian insurance market leaves it far behind when compared to other European countries. Its insurance penetration degree is roughly around 1.3%, while in Europe the average sits at a solid 5%. At the same time, the Ukrainian market saw a stable annual growth of about 20% in the latest years, according to the Lexology portal.
In the first quarter of 2020, the total number of concluded MTPL contracts reached almost 1.8 million units, which represents an increase of 0.5% y-o-y. At the same time, the corresponding GWP amounted to UAH 1.3 billion (~EUR 43 million, +20% y-o-y), as the Motor (Transport) Insurance Bureau (MTIBU) reports.
The National Bank of Ukraine (NBU) continues its preparations for the transfer of regulatory functions of non-banking financial services market from the National Financial Services Commission, to become effective on July 1, 2020, Forinsurer reports.
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 of ARX company for 1Q2020 increased by 19% y-o-y and reached about UAH 626 million (~EUR 20.7 million). The portfolio was dominated by motor insurance (49%), health insurance (23%) and property insurance (15%), Forinsurer reports.
In 2019, Ukrainian insurers costs for conclusion and prolongation of insurance contracts increased by 54%, the expenses for agent remuneration growing by 72%, Forinsurer reports based on the data of the National Financial Services Commission.
For the first quarter of 2020, the GWP of Ukrainian TAS insurance group increased by 20.2% y-o-y. The total amount of GWP reached UAH 478.21 million (~EUR 15.8 million*), Forinsurer reports.
At the end of 2019 the Ukrainian insurance market saw an increase of 7.36% year-on-year, to UAH 53 billion, while in European currency its growth was almost 29% thanks to a more favorable rate compared to 2018*, to a little over EUR 2 billion threshold.
According to the structure of risk reinsurance in Ukraine by non-residents at the end of 2019, the most premiums were paid to Germany (22.3%) and Austria (19.4%), as the data of the National Commission for Financial Service Markets Regulation of Ukraine show.
In 2019, motor insurance on the Ukrainian market (MTPL, Motor Hull and Green Card summed) increased by 16.5% y-o-y, to UAH 15.1 billion (~EUR 0.57 billion), Forinsurer reports.
From April this year, INGO Ukraine insurance company
, one of the TOP-10 local market leaders, will operate under the name INGO. The company will also change its logo and corporate identity, as the insurer informed in its press release.
In March 2020, paid claims of ARX Insurance Company (formerly AXA Insurance) increased by 15% y-o-y, to almost UAH 89 million (~EUR 2.87 million), while the amount of average daily payments remained unchanged (about UAH 4 million), Forinsurer informed.
In 4Q2019 the speed of claim settlement and the quality of MTPL insurers' work improved, according to the Motor (Transport) Insurance Bureau of Ukraine (MTIBU).
Based on the government decision, work of business entities in the country was prohibited from March 17 to April 3. Insurance companies were included into the list of exceptions and can fulfill their obligations in full, Forinsurer reported.
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).
In November 2019, MTIBU announced the creation of an innovative hub to support the development and promote technological startups for road safety. The MTIBU team of experts will analyze the proposed innovative solutions.
Ukrainian insurance market will start working in accordance with the "split" law from January 1, 2021, said Alexander BEVZ, Director of the National Bank's licensing department, at the VI International Carpathian Insurance Conference.
GWP of insurers-members of the Motor (transport) Insurance Bureau of Ukraine (MTIBU) in 2019 increased by 13.46% y-o-y, to UAH 5.1 billion (EUR 0.19 billion), according to the MTIBU Director General Volodymyr SHEVCHENKO.
In 2019, the National Commission for State Regulation of Financial Services Markets closed 27.5% more non-banking financial institutions than during 2018.
According to the Motor (Transport) Insurance Bureau of Ukraine (MTIBU), in 2019 over UAH 212 million (~EUR 8 million) were paid to road traffic accidents victims from the MTIBU guarantee funds. The total number of claims paid increased by 20.1%, while their amount went up 30.2%.