Accrued insurance premiums under Green Card international insurance agreements concluded by the member companies of the Motor (Transport) Insurance Bureau of Ukraine (MTIBU) in January-August 2021 increased by 37.52% compared to the same period in 2020, to UAH 1.075 billion.
According to the MTIBU website, the number of Green Card agreements concluded during this period increased by 22.04%, to 496,200.
At the same time, the amount of compensations paid on claims decreased by 35.54%, to EUR 7.865 million, the number of claims paid – by 20.26%, to 3,302.
The MTIBU is the only association of insurers that provide compulsory insurance of civil liability of land vehicle owners for damage caused to third parties.
Green Card is a system of insurance coverage for victims of road traffic accidents, regardless of their country of residence and the country of registration of the vehicle. The Green Card program covers the territory of 47 countries in Europe, Asia and Africa.
According to the decision adopted by the General Assembly of the Council of the Bureaux of the Green Card international auto insurance system in Luxembourg in May 2004, Ukraine since January 1, 2005 has been a full member of this system.
The share of insurance in Ukraine’s GDP is very low and has a downward trend: since 2014 and as of June 30, 2021, it has decreased from 1.69% to 1.14% (by 32.5%), Director General of the Insurance Business Association Viacheslav Cherniakhovsky said at the XXI International Financial Forum in Odesa.
“We have not yet reached the indicators of the first half of 2017 in premiums if we count the market size adjusted for inflation. Achieving the level of penetration of 2% of GDP, laid down in the updated Financial Sector Development Strategy of Ukraine until 2025 year seems unlikely by the end of 2024, especially if there are no changes in the taxation of enterprises when they conclude long-term life insurance contracts for their employees,” he said.
Speaking about the steps that would contribute to the development of the market, Cherniakhovsky noted the inadmissibility of such practices as the accreditation of insurers by banks. “Not a single legislative document contains any accreditations. This is an anachronism and remnants of monopoly. On the contrary, there is a provision of the law on insurance, according to which the consumer has the right to choose an insurer, and it is forbidden to impose the conclusion of an insurance contract within the framework of other legal relations. Banks can only nominate requirements for the structure of the insurance product provided by the insurance company – definitions of insurance amounts, a list of risks, the size of the franchise, the terms of payment and cases of refusal in it,” he said.
Cherniakhovsky said that the National Bank of Ukraine (NBU), as a general regulator for the banking and insurance market, should stop this practice. “This is necessary for all consumers who receive loans now, next month, and not sometime in the future. The practice is unacceptable when banks oblige insurance companies to double prices for owners of collateralized property to receive not only interest on the loan, but and a commission of 50% of insurance payments,” he said.
According to the expert, what they are now trying to consolidate with the new law on the specifics of insurance of agricultural products with state support, in fact, is also a kind of “accreditation”. This approach is unacceptable, since any company that has received the appropriate license has the right to operate in the market for this type of insurance, he said.
In January-June 2021, ARX Insurance Company (Kyiv) paid out UAH 603 million of insurance indemnities to clients, which is 30% more than in 2020, of which 80.7% is vehicle insurance.
As reported on the company’s website, in the KASKO segment, payments over the first half of the year amounted to about UAH 425 million, which is 46% more than in the same period in 2020, OSAGO – more than UAH 62 million (more by 37%).
It is also noted that payments on voluntary medical insurance for the indicated six months amounted to more than UAH 89 million of insurance claims, which is 12% more than in 2020.
The company also reports that a large-scale project with Visa was launched in February 2021. Holders of VISA Platinum, Signature and Infinite premium cards received a free bonus – telemedicine consultations from ARX.
The company pays out about UAH 4 million to its clients every day. On average, the company pays more than UAH 100 million per month, the main categories remain KASKO, OSAGO and healthcare.
As reported, ARX has been operating in the insurance market for 26 years and has been the leader in KASKO insurance for the 12th year in a row. It ranked first among Ukrainian insurers in terms of net insurance premiums and net insurance payments for 2019. It is part of the international insurance holding Fairfax Financial Holdings Limited (Canada).
INGO Insurance Company (Kyiv) in January-June 2021 collected more than UAH 966 million in insurance premiums, which is 26% more than in the same period in 2020.
According to the company, in the first half of this year, more than UAH 416.5 million were paid to customers, more than 92,000 insurance events were settled.
The formed insurance reserves of INGO as of June 30, 2021 amounted to more than UAH 1.226 billion, which is 13% more than on the same date a year earlier, the cost of highly liquid assets – UAH 1.929 billion.
The actual solvency margin is UAH 687.1 million, which exceeds the norm by UAH 390.3 million.
The company’s net worth is UAH 32.950 million (more by 5%), the charter capital is UAH 305.543 million.
INGO Insurance Company has more than 25 years of experience in the market. Since 2017, its main shareholder has been DCH business group of Oleksandr Yaroslavsky.
The company has 28 licenses for various types of compulsory and voluntary insurance, and provides insurance services to corporate and retail clients.
INGO is a full member of the Motor (Transport) Insurance Bureau of Ukraine (MTIBU), a member of the American Chamber of Commerce, the European Business Association and the International Chamber of Commerce.
The largest number of branches of insurance companies (per 100,000 population) is located in Kyiv – 115, Kherson region – 124 representative offices, Zaporizhia – 49, Mykolaiv – 36, Khmelnytsky – 33, Cherkasy – 31, Ternopil-30, Chernivtsi – 28, according to the website of the National Bank of Ukraine (NBU).
At the same time, it is emphasized that in these regions the representation of insurers is 12.2 per 100,000 population.
The NBU also notes that in another eight regions of Ukraine the presence of insurers is significant (2.48 per 100,000 population). These are Lviv region with 57 representations, Odesa – 57, Vinnytsia – 34, Zakarpattia – 31, Ivano-Frankivsk – 28, Chernihiv-22, Kirovohrad – 20.
The smallest concentration of insurers (1.97 per 100,000 population) the NBU notes in Dnipropetrovsk region – 61 representative offices, Kharkiv – 44, Donetsk – 43, Poltava – 27, Rivne – 21, Zhytomyr – 20, Sumy – 20.
As reported, according to the NBU, as of March 31, 2021, the total number of insurance companies in Ukraine was 208, while on the same date a year earlier – 225. In particular, 20 insurers specialize in life insurance.
Euroins Ukraine insurance company (Kyiv) in January-March 2021 attracted about UAH 165 million in insurance premiums, which is 88% more than in the same period in 2020.
According to the insurer’s press release, the main areas of the company’s work, as in 2020, remain car insurance and voluntary medical insurance – the most popular and demanded services on the conventional insurance market of Ukraine.
According to the company, premiums collected on compulsory motor third party liability insurance (OSAGO) for the first quarter amounted to UAH 47.4 million, which is 45% more than in the same period a year earlier, voluntary car insurance (KASKO) – UAH 23.2 million (a rise of 47%), and voluntary medical insurance – UAH 34 million (2.5 times more).
In addition, the company was able to ensure a high dynamics of premiums in other areas of activity. Thus, property insurance increased 4.6 times, insurance against fire risks – 2.5 times, against accidents – 2 times, third party liability insurance grew by 52%.
During the first quarter of this year, Euroins Ukraine paid out more than UAH 37 million to customers, which is 42% higher than in the first quarter of 2020. On average, the company pays its clients UAH 400,000 in compensations every day.
“In 2021, Euroins continues growing dynamically, strengthening its market positions. Our mid-term goal is to enter the top 10 of the leading insurance companies in Ukraine, and we are confidently moving towards this. To implement such ambitious plans, we are actively building up our team in all regions of Ukraine. We are developing digital insurance channels and partnership projects,” Board Chairman of Euroins Ukraine Yanko Nikolov said.
PJSC Euroins Ukraine has been operating in the Ukrainian market since 1992. It is a part of Euroins Insurance Group AD (Bulgaria).
The company has 22 licenses: 14 for voluntary and eight for compulsory types of insurance. The company specializes in motor, medical, property and cargo insurance for private and corporate clients. It has 19 offices throughout Ukraine. The company is a member of MTIBU.
