The expenses of Ukrainian insurance companies on advertising and marketing in January-March 2023 increased by 18.9% compared to the same period in 2022 – up to UAH 30.8 million, according to the website of the National Bank of Ukraine (NBU).
According to the report, the administrative costs of insurers during the reporting period amounted to UAH 1.310 billion, which is 12.3% less than in the first quarter of 2022, and their costs on sales decreased by 3% – to UAH 474 million.
In addition, there was 8.4% reduction in the expenses on conclusion and prolongation of insurance contracts – from UAH 2.818 billion in January-March 2022 to UAH 2.581 billion this year. Expenses on agent remunerations decreased by 10.4% 0 to UAH 2.369 bn.
Expenses on conclusion and prolongation of reinsurance contracts have increased by 28% up to UAH 24,2 mln, including fees for brokers – by 32,7%, to UAH 23,9 mln, from which non-resident brokers have reduced by 37,5% down to UAH 4,5 mln.
Expenses on settlement of insured events increased by 14.8% up to UAH 101.1 mln, and expenses on services of evaluators increased by 32.7% up to UAH 32.9 mln.
The expenses for assistance services have decreased by 2.2% and amounted to UAH 45,2 mln. At the same time, payment for the services of non-resident assistance reduced 2.3 times, to UAH 2.4 mln.
The expenses on court cases increased in 2,8 times, up to UAH 13,2 mln.
As it was reported, in January-March 2023 Ukrainian insurance companies collected net premiums to the amount of UAH 9.911 billion, which is by 6.1% more than in the same period a year earlier (UAH 9.338 billion).
In addition, in the first quarter of 2023 Ukrainian insurers paid out UAH 3,745 billion of net insurance payments (+19%). The level of net payments increased from 33,7% to 37,8%.
According to the NBU, the total number of insurance companies in Ukraine as of April 1, 2023 amounted to 122 companies, 12 of which specialize in life insurance, while on the same date a year earlier there were 145 (13 life insurance).
At present, 88% of insurance market participants continue to fulfill their obligations under insurance contracts in full and in due term, Governor of the National Bank of Ukraine (NBU) Kyrylo Shevchenko has said.
“After the victory, we plan that they will join the restoration of the economy and social protection of the population. The main requirement of the NBU for insurers will remain their compliance with solvency and liquidity standards,” he wrote in a column for NV.Business publication.
According to Shevchenko, the credit cooperation market continues to operate, despite the decrease in the number of credit unions. The next stage in the development of this market segment will be associated with the launch of a system for guaranteeing deposit fees for members of credit unions and building a two-tier system of credit unions in Ukraine.
He also said that as a result of the deterioration of the property position of borrowers, the task of financial companies engaged in lending is the qualitative restructuring of overdue debts and the introduction of credit holidays on consumer loans.
“We continue focusing on market behavior, a transparent ownership structure and consumer protection in their regulation. At the same time, due to the war, we almost do not introduce prudential requirements,” the governor of the National Bank said.
The nonbank financial sector continues to operate. To support it, the NBU softened a number of regulations and postponed the introduction of new requirements for the activities of financial companies, Shevchenko said.
Ukrainian insurance companies collected net premiums in the amount of UAH 18.688 billion in January-June 2020, which is 7.1% less than in the same period a year earlier (UAH 20.121 billion), according to a posting on the website of the National Bank of Ukraine (NBU).
According to the regulator, the volume of gross insurance premiums collected by insurers for the specified period amounted to UAH 21.008 billion, which is 23% less than in the first half of 2019 (UAH 27.291 billion). Of these, premiums received from individuals amounted to UAH 9.589 billion, from reinsurers – UAH 1.806 billion.
According to the NBU, in January-June 2020, insurers paid out UAH 6.642 billion of net insurance payments in claims, which is 1.7% more than in the first half of the year earlier (UAH 6.527 billion). The level of net payments increased from 32.4% to 35.5%.
Gross insurance payments increased by 2.3% to UAH 6.833 billion. The level of gross payments increased from 24.4% to 32.5%. Of the total volume of gross payments, payments to individuals amounted to UAH 3.129 billion, to reinsurers – UAH 237.7 million.
According to the NBU, the volume of insurance payments belonging to reinsurers in the first half of the year amounted to UAH 4.191 billion, of which UAH 1.934 billion to nonresident reinsurers.
As of June 30, the assets of Ukrainian insurers on the balance sheet amounted to UAH 61.888 billion, while on the same date a year earlier they were UAH 65.265 billion. The volume of assets determined by legislation to represent insurance reserves increased by 30%, to UAH 55.592 billion, while the volume of paid charter capital decreased 17.3%, to UAH 9.599 billion.
The regulator also said that during the specified period, the volume of formed insurance reserves increased by 8%, to UAH 31.359 billion.
In this period, 57.897 million insurance contracts were signed.
According to the NBU, the total number of insurance companies in Ukraine as of June 30, 2020 was 215, while on the same date a year earlier there were 249 companies, including 20 (26) life insurance companies.
The National Commission for the Financial Service Markets Regulation through January-June 2019 received 2,537 complaints concerned insurance companies, which was 3.1% less during the similar period of 2018.
Leaders in the number of complaints wereOmega (157, UAH 8.71 million was additionally paid), Halytska (155, UAH 1.29 million), Oranta (140, UAH 2.7 million), and ASKA (129, UAH 5.99 million).
Some 581 complaints were received against these insurance companies. These companies paid UAH 18.69 million after consideration of complaints by the commission.
Total additional payments by insurers after consideration of complaints over the period reached UAH 48.92 million.
The commission said that complaints arrived from individuals and legal entities, including people’s deputies, the Cabinet of Ministers, the Presidential Administration, parliamentary committees, ministries and agencies.
Ukrainian insurance companies in January-March 2019 collected net premiums in the amount of UAH 9.673 billion, which is 19.1% more than in January-March 2018, according to the website of the National Commission for Financial Service Markets Regulation.
According to the regulator, the volume of gross insurance premiums collected by insurers for this period amounted to UAH 13.331 billion (14.7% more).
The commission notes that the increase in gross insurance premiums was recorded in almost all types of insurance: in voluntary car insurance (KASKO), compulsory vehicle owners’ civil liability (OSAGO) and Green Card by UAH 670 million, or by 24.9%, medical insurance by UAH 443 million, or by 49%, insurance against fire risks and natural hazards by UAH 421 million, or 35.5%, property insurance by UAH 284.5 million, or by 16.3%, life insurance by UAH 195 million, or 23.6%, medical expenses insurance by UAH 183.4 million, or 74%, and aviation insurance by UAH 72.9 million or 90%.
The share of net insurance premiums in gross insurance premiums for Q1 2019 was 72.6%, which is 2.7 percentage points more compared to Q1 2018.
In January-March 2019, insurers paid UAH 3.249 billion in net payments in claims, which is 4.8% more than a year ago. The level of net payments fell from 38.2% to 33.6%.
Gross payments in claims grew by 4.5%, to UAH 3.311 billion. The level of payments fell from 27.3% to 24.8%.
