ARX Insurance Company in January-September 2021 collected more than UAH 2.5 billion in insurance premiums, which is 30% more than in the same period a year earlier, according to a press release from the insurer. It is also noted that payments to customers for the reporting period amounted to more than UAH 942 million, which is 29% more than a year ago. The volume of premiums collected for KASKO insurance amounted to more than UAH 1.4 billion, which is more than a third more than in the same period last year (32.7%). The amount of payments exceeded UAH 664 million. The amount of collected premiums on OSAGO stood at UAH 38.8 million (up by 29.7%), on voluntary medical insurance – more than UAH 379 million of premiums (more by 32.5%), more than 140 million insurance claims were paid, property insurance collected UAH 288.5 million (more by 23.5%), payments amounted to more than UAH 27 million. The press release notes that the sum of the collected premiums of the life insurance company ARX Life for the specified reporting period amounted to UAH 192.7 million (more by 23%). The amount of payments was UAH 37.4 million. The profit of both companies for the nine months of 2021 amounted to UAH 200 million. 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). AXA Group (France) in February 2019 completed the sale of its subsidiaries in Ukraine: PrJSC AXA Insurance and AXA Insurance Life. On July 1, 2019, AXA Insurance changed its name to ARX Insurance Company. AXA Life Insurance began operating under the ARX Life brand.
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.