Insurance market of Ukraine for 9 months of 2024
The insurance market of Ukraine in the 3rd quarter of 2024 showed an increase in assets and premiums
The insurance market of Ukraine for the 9 months of 2024, as well as for the 3rd quarter, showed an increase in all key indicators – assets, insurance premiums and insurers’ payments. Total gross insurance premiums increased by 12.3% from UAH 34.2 billion to UAH 38.4 billion, the level of payments was 41%.
Gross risk insurance premiums grew for the second quarter in a row and for the 9 months of 2024 they increased from UAH 30.6 billion to UAH 34.3 billion, the increase in payments has continued since the beginning of 2023 due to inflation and devaluation of the national currency, the level of payments fell from 36% to 41%.
Life insurance premiums and payments also resumed growth: life insurers’ premiums increased from UAH 3.57 billion to UAH 4.06 billion, the level of payments in life increased from 22% to 24%.
The main indicators of insurers’ activities remained acceptable, according to the results of January-September, the segment was profitable. Despite the exit of insurers and financial companies from the market, the volume of assets of the segment increased.
Insurance market structure
In the third quarter of 2024, the number of insurers and non-banking financial institutions decreased: 15 insurers and 40 financial companies were excluded from the Register. Approximately half of the institutions left the market voluntarily, refusing their licenses. In July-September, the NBU agreed to narrow the scope of licenses for 59 financial companies and five insurers.
The number of participants in the insurance and non-banking financial market decreased from 926 to 897 in October. The number of insurers decreased to 75.
The number of banks remained unchanged at 62. 5 risk insurers were excluded from the State Register of Financial Institutions at the initiative of the applicant. One risk insurer was forcibly excluded. At the same time, one insurance broker was included in the State Register of Insurance and Reinsurance Brokers.
In October, all licenses of 5 insurers were canceled voluntarily (based on their applications). While the licenses of one insurer were forcibly canceled. At the same time, the National Bank of Ukraine approved the expansion of the scope of licenses for the type of activity of providing financial services to two insurers. At the same time, the narrowing of the scope of the license was approved for one insurer.
As of November 1, 58 non-life insurers (there were 64), 11 life insurers (the number did not change), one insurer with a special status, 43 insurance brokers (there were 42) operated in the non-banking financial services market.
Assets of insurance companies of Ukraine
The total assets of non-banking financial market participants increased by 5.7% in the third quarter. Growth was recorded in all segments, except for credit unions.
Assets increased the most in financial companies – by 6.4%. The assets of insurers increased by 3.7%. However, the assets of credit unions decreased for two consecutive quarters. The share of NBFIs, supervised by the NBU, in the financial sector increased by 0.3% to 10.1%.
In the third quarter, the assets of life insurers remained almost unchanged. In contrast, risk insurers’ assets grew by 6% q/q, despite the exit of 14 companies from the market. Risk insurers’ premiums grew for two consecutive quarters – by 12% q/q and 10% y/y. Life insurers’ premiums resumed growth after a decline in the second quarter – by 10% q/q and 9% y/y.
Payments and premiums increased by main classes
The volume of gross insurance premiums transferred to reinsurance increased by 7% per quarter. The level of payments under transport insurance products (CASCO, OSCPV, “Green Card”) for January – September was 3-4 pp. higher than for the same period last year.
In transport insurance, the largest growth was recorded for the “Green Card” (+13% q/q), continuing past trends. In personal insurance classes, assistance and travel insurance showed the greatest growth (+83% q/q).
Transport and personal insurance account for over 80% of premiums and 90% of payments on the market. Among other products, financial risk insurance (+25% q/q) and cargo and baggage insurance (+18% q/q) grew the most.
Insurance payments also increased, but with different dynamics. For risk insurers, payments increased by 1% q/q, continuing the trend since the beginning of 2023. The growth rate slowed down noticeably.
For life insurers, payments increased for two consecutive quarters after falling in the first quarter – by 14% q/q. The level of payments on the market increased slightly – by 1%.
