Ukrainian insurance companies in January-September 2018 collected net premiums for the amount of UAH 25.389 billion, which is 22.1% more than a year ago, the national commission for financial service markets regulation has told Interfax-Ukraine.
Some UAH 8.713 billion was collected under car insurance policies (voluntary car insurance (KASKO), compulsory vehicle owners’ civil liability (OSAGO) and Green Card), which is 22% more than a year ago, UAH 2.451 billion under medical insurance policies (a rise of 21%), UAH 2.407 billion – property insurance (25.9% up), UAH 1.479 billion – fire and natural disaster risk insurance (33.2% up), UAH 1.321 billion – insurance of responsibility to third parties (25% up), UAH 1.251 billion – financial risk insurance (14% down), UAH 1.113 billion – cargo and luggage insurance (42.2% up), UAH 981 million – accident insurance (35.5% up), UAH 838.8 million – medical expenses insurance (32.2% up), UAH 371 million – loan insurance (66.3% up) and UAH 337.4 million – aviation insurance (37.7% down).
During the reporting period, insurance companies specializing in life insurance collected UAH 2.741 billion of net insurance premiums, which is 35.6% more than in January-September 2017, and paid out UAH 536.8 million of insurance claims (a rise of 29.8%).
According to the regulator, the volume of net insurance payments in January-September 2018 increased 18.3%, to UAH 8.467 billion.
Of these, the majority of payments fall on car insurance (KASKO, OSAGO, Green Card) – UAH 4.149 billion, which is 19.6% more than in the same period a year earlier, medical insurance – UAH 1.470 billion (22.9% up) financial risks insurance – UAH 1.050 billion (11.4% down), property insurance – UAH 397 million (2.1 times more), medical expenses insurance – UAH 222.8 million (a rise of 14.1%), fire and natural disasters risk insurance – UAH 170.8 million (4 times more), accident insurance – UAH 139 million (21.6% up), and loan insurance – UAH 63.5 million (a fall of 38.8%).
The regulator also said that reinsurance operations for the first nine months of the current year decreased 11.6%, to UAH 11.719 billion, including a 16.2% fall in nonresident reinsurance, to UAH 2.232 billion.
Insurance companies that are members of the League of Insurance Organizations of Ukraine (LIOU), specializing in risk insurance and participating in the Open Insurance project, in January-September 2018 increased gross insurance premiums by 19.6% compared to the same period in 2017, to UAH 7.7 billion, according to the LIOU’s website. Gross insurance payments in the nine months of 2018 rose by 31.1%, to UAH 2.8 billion.
The total amount of insurance reserves as of September 30, 2018 grew by 40%, to UAH 5.5 billion.
The assets of insurance companies participating in the Open Insurance project amounted to UAH 11.5 billion (19.8% up), and the total net worth to UAH 4.5 billion (4.6% more).
In the structure of gross insurance premiums for the nine months of 2018, the largest share belonged to the types of voluntary property insurance with UAH 3.742 billion (48.8%), personal insurance (except for life insurance) with UAH 1.869 billion (24.4%), non-state compulsory insurance with UAH 1.676 billion (21.8%), voluntary liability insurance with UAH 386.8 million (5%).
In the structure of gross insurance payments, the largest share belongs to the types of voluntary property insurance with UAH 1.281 billion (46.3%), voluntary personal insurance (except for life insurance) with UAH 872 million (31.5%), non-governmental compulsory insurance with UAH 599.3 million (21.7%), and voluntary liability insurance with UAH 14.2 million (0.5%).
The insurance companies of Ukraine, the members of the Motor (Transport) Insurance Bureau of Ukraine (MTIBU), in January-June 2018 increased collection of insurance premiums on compulsory insurance of vehicle owners’ civil liability (OSAGO) by 20.9% compared with the same period in 2017, to UAH 2.183 billion.
According to the MTIBU’s website, the number of OSAGO contracts for the six months increased by 4.4%, to 3.905 million. The total volume of insurance claim fees paid under internal insurance contracts, according to the MTIBU, increased by 16.2%, to UAH 1.066 billion. In particular UAH 158.2 million were paid using EU accident report forms, which is 44.1% more than in January-June 2017.
The bureau also recorded a reduction in the number of settled claims for insurance compensation – by 0.4%, to 67,700, of which 17,832 using EU accident report forms (an increase of 16.5%).
The MTIBU is the only association of insurers that carry out compulsory insurance of civil liability of land vehicles’ owners for harm caused to third parties. The members of the bureau are 56 insurance companies.
The assets of insurance companies placed in the instruments of the stock market in January-March 2018 amounted to UAH 11.326 billion, which is UAH 2.625 billion, or 18.8% less than in the same period in 2017, member of the National Commission for State Regulation of Financial Services Markets Oleksandr Zaletov has told Interfax-Ukraine. According to him, due to regulatory requirements and stagnation of the national stock market, the volume of shares and corporate bonds in the structure of insurance companies’ assets is steadily declining. In the first quarter of 2018, investments in shares decreased by 23.7% compared to the same period in 2017, or by UAH 1.746 billion, in corporate bonds by 13.7%, or by UAH 126.5 million.
At the same time, Zaletov notes the growth of investing of insurers’ funds in government domestic loan bonds continues – by 15.5%, or by UAH 859.9 million. At the same time, income from investments in government domestic loan bonds for the period increased by 29%.
“The stability of the hryvnia and higher interest rates contributed to the growth of insurers’ national currency investments both in deposits and current accounts. But this did not save from the decline in the yield of this category of assets by 6.8%. In addition, investment in the economy of the country in the areas defined by the government rose by 54.8%, or UAH 150.5 million,” the expert said.
The insurance companies of Ukraine in January-March 2018 collected net premiums in the amount of UAH 8.119 billion, which is 26.7% more than for the same period a year earlier, according to the website of the National Commission for State Regulation of Financial Services Markets. According to the regulator, the volume of gross insurance premiums collected by insurers for the period amounted to UAH 11.619 billion (6.6% more).
The commission notes that an increase in gross insurance premiums occurred for almost all types of insurance: auto insurance (KASKO, OSAGO, Green Card) by UAH 461.2 million, or 20.7%, insurance against fire risks and risks of natural phenomena by UAH 1.046 billion, or 41%, insurance of liability to third parties by UAH 365 million, or 72.2%, credit insurance by UAH 224.8 million, or 3 times, life insurance by UAH 193.8 million, or 30.6%, insurance against accidents by UAH 163.6 million, or 65.9%, medical insurance by UAH 143.8 million, or 18.9%, and medical insurance by UAH 69.9 million, or 40.3%.
The share of net insurance premiums in gross insurance premiums for the first quarter of 2018 rose by 11.1 percentage points from the first quarter of 2017 and amounted to 69.9%.
In January-March of the current year, insurers paid UAH 3.099 billion of net insurance claim fees, which is 37.2% more than in the same period a year earlier. The level of net payments grew from 35.3% to 38.2%.
Ukrainian insurance companies that are members of the League of Insurance Organizations of Ukraine (LIOU), specializing in risk insurance and participating in the Open Insurance project, in January and February 2018 collected UAH 1.7 billion of insurance premiums, according to the LIOU website. The largest share in the structure of gross insurance premiums is that of voluntary property insurance with UAH 1 billion (60%), voluntary personal insurance (excluding life insurance) with UAH 400 million (21.7%) and non-government compulsory insurance with UAH 200 million (14.3%). Gross insurance premiums for voluntary insurance in January-February 2018 amounted to UAH 100 million (4%).
Gross insurance claim fee payments over the period amounted to UAH 500 million. The largest share in the structure of gross insurance payments was that of voluntary property insurance with UAH 200 million (40.3%), voluntary personal insurance (except for life insurance) with UAH 200 million (34.7%), non-government compulsory insurance with UAH 100 million (24.2%) and voluntary responsibly insurance with UAH 40 million (0.7%).
LIOU also analyzed voluntary car insurance (KASKO), obligatory insurance of civil liability of vehicle owners (OSAGO) and voluntary medical insurance.
KASKO premiums of the Open Insurance project participants totaled UAH 289.2 million in January-February 2018. Gross payments in claims reached UAH 180.3 million. The level of settling the payments was 62.3%.
As for voluntary medical insurance, premiums amounted to UAH 272 million and gross payments in claims – UAH 162 million. The level of settling the payments was 59.6%.
OSAGO premiums reached UAH 156.4 million and payments in claims – UAH 110.6 million. The level of settling the payments was 70.7%.
The insurance companies participating in the Open Insurance project are Azinco, Alfa Insurance, Arsenal Insurance, ViDi Insurance, Globus, Euroins, Interexpress, Inter-plus, Naftogazstrakh, NIKO Insurance, PZU Ukraine, Providna, PRO100-Strakhuvannia, Raritet, Skarbnytsia, Ukrfinstrakh, UNIQA and USI.
The Open Insurance project was founded by the League of Insurance Organizations of Ukraine in 2008 with the aim of improving the standards for disclosing information on the activities of insurance market participants, publicly announcing financial indicators, observing the policy of transparent activities and access to information.