Insurers continue to offer coverage for war risks to an increasing number of businesses and individuals, although this line of business remains unprofitable with a combined ratio of 111.11%, according to the “2025 Insurance Market Review” prepared by the National Association of Insurers of Ukraine (NAIU).
In addition, the report notes that insurance against war risks, in particular, led to a 30% increase in insurance premiums in the property line of business, which is directly linked to public demand for real estate insurance against the consequences of war. At the same time, 75% of clients are legal entities. Ukrainian businesses are actively seeking protection and finding it by engaging foreign reinsurance capacity, particularly from global giants such as Lloyd’s of London.
According to the information, 304 insurance companies have left the domestic market since 2016.
“It was a painful but critically necessary cleansing process. The industry underwent a digital revolution, weathered stricter solvency requirements in 2019, survived a massive ‘Split’ in 2020, and implemented Ukraine’s new, progressive Law ‘On Insurance.’ And all of this took place against the backdrop of Russia’s full-scale invasion and unprecedented security uncertainty,” the report notes.
As of the end of 2025, 47 companies operate in the non-life insurance sector, while only 10 remain in life insurance.
“Today, this is a highly concentrated and fiercely competitive environment, where the top ten companies account for 74.3% of the entire non-life market. In the life insurance segment, the situation is even more telling, and the entire market consists of these 10 players, with a single insurer accounting for nearly 50% of the industry,” the report notes.
It is also emphasized that despite the war and extremely challenging operating conditions, companies have demonstrated impressive resilience. The net financial result for both segments totaled UAH 6.8 billion, and only nine insurers ended the year with losses. At the same time, the market as a whole remains well-capitalized, as eligible assets for meeting solvency requirements amounted to UAH 86.2 billion, which is 31% higher than the figures for 2024.
“The robust operational health of the risk sector is best evidenced by the figures, where the portfolio loss ratio stands at 49.1%, the combined loss ratio has fallen below the psychological threshold to 97%, and operational efficiency has remained at a high level of 88.6%.
We can only wholeheartedly congratulate our non-life market on these results,” the report emphasizes.
One of the most telling factors in the annual dynamics of complaints against insurers received by the National Bank of Ukraine in 2025 was a significant decrease in the percentage of actual violations of the law among the total number of complaints (17.9% versus 30% in 2024).
“This indicates that the lion’s share of complaints is due not to unlawful actions by insurers, but to communication problems,” concluded experts from the Insurance Business Association (IBA), based on the NBU’s report on handling complaints from financial services consumers in 2025.
According to the ASB press release, consumers often do not fully understand the terms of the contract due to the complexity of the wording or insufficient explanation from insurers when concluding the agreement. Formalities in settlement and poor explanations of payment calculation algorithms (e.g., depreciation accounting, according to the law) create a false impression of a violation of rights, even though the insurer is acting within the law.
In addition, according to the report, in 2025, the NBU processed a total of 28,440 thousand written appeals, of which 1,473 thousand were related to the activities of insurers. Among the key issues that concerned customers were non-payment of insurance compensation (716 complaints) and incomplete payment (508 complaints).
“The analysis of the data indicates the stability of the insurance sector and a significant improvement in the quality of insurance claims settlement, despite the challenges of wartime,” the ASB emphasizes.
According to the association’s CEO, Vyacheslav Chernyakhovsky, the 2025 figures demonstrate the phenomenal ability of Ukrainian insurance to raise customer service standards even during wartime. Considering that insurance companies (excluding health insurance payments) made more than 540,000 payments during the year, the complaint rate was 0.25%.
“This is significantly better than in the markets of the world’s leading countries, where this indicator is usually 0.5-1%. Year after year, insurers confirm their status as the most customer-oriented segment of the financial market,” he emphasized.
According to Chernyakhovsky, particularly noticeable progress has been made in the field of compulsory civil liability insurance for owners of land vehicles (OSCPV). Thanks to the introduction in 2025 of a new law that replaced controversial “expertise” payments with direct compensation through repair work at service stations, the number of complaints has decreased significantly. With 150,900 payments made under CMTPL, the Motor (Transport) Insurance Bureau of Ukraine received only 478 complaints, compared to 740 in 2024.
Losses of world insurers from natural catastrophes in January-September amounted to $105 billion, according to the report of reinsurance broker Gallagher Re. This is below the average for this period for the last ten years, which is $114 billion.
Insurance losses have exceeded the $100 billion mark for the previous five consecutive years. They were also above that level in 2017 and 2018 and dipped just below that mark in 2019 ($98 billion).
The January fires in Los Angeles caused the largest losses at $40 billion, with damage from the Myanmar earthquake in March estimated at $1.7 billion and summer flooding in China at $0.4 billion.
The U.S. accounted for about 86% of global losses in January-September, the report said.
The number of written appeals to the National Bank of Ukraine on the activities of insurance companies in the second quarter of 2025 decreased by 9.3% – to 321, oral appeals through the contact center – by 18%, to 41, according to the report on the work with appeals of consumers of financial services in the mentioned period.
“We observe a tendency to decrease the number of written appeals on the work of financial, collection companies and insurers. At the same time, we note an increase in the number of questions regarding the work of banks of all forms of ownership,” the report says.
It is noted that the share of identified violations in written appeals regarding the activities of insurers is 22%, state banks – 2.8%, private banks – 1.8%, foreign banks -1.3%, financial companies – 21%, collection companies – 34%.
Appeals regarding the activities of insurers relate to disputes when the consumer received compensation not in full or did not receive it at all.
According to the NBU, the reasons for such problems vary from violations of legislation on the part of insurers to the provision of false data on the occurrence of an insured event by the consumer. In addition, the amount of compensation for material damage may differ from the actual amount due to the expert opinion of the involved insurer’s specialist and the application of depreciation in the calculation of material damage, which is determined by the current legislation or the terms of the contract.
Insurance companies that are members of the Motor (Transport) Insurance Bureau of Ukraine (MTIBU) concluded 3.432 million compulsory civil liability insurance contracts for owners of land vehicles This is 6.45% less than in the same period last year.
According to data published on the MTIBU website, 3.418 million contracts were concluded in electronic form (+24.5%).
In January-June 2025, the Bureau’s members increased the collection of insurance payments under MTPL policies by 2.3 times to UAH 10.457 billion, including UAH 10.424 billion under electronic contracts (2.8 times more).
The total amount of insurance indemnities accrued under domestic insurance contracts increased by 24.58% to UAH 2.885 billion, including UAH 762 million paid using the “Europrotocol” (+68%).
The Bureau also recorded a 2.2% increase in the number of settled insurance claims to 72,400, including data on the use of the “Europrotocol” – 31,800 (+25.5%).
The MTIBU is the only association of insurers in Ukraine that provides compulsory civil liability insurance for owners of land vehicles for damage caused to third parties. The Bureau has 27 insurance companies as members.
The National Bank of Ukraine (NBU) on April 23 announced a tender for compulsory insurance of civil liability of car owners and insurance of drivers against accidents in transport, according to the state procurement system Prozorro.
The expected cost of purchasing the services is UAH 1.044 mln. The deadline for submission of documents is April 30, 2025. The winner of a similar tender a year ago was IC “Guardian”.
