INSURANCE MARKET IN 2025

The Ukrainian insurance market today is a successful story of survival, deep transformation, and true maturation. Looking back, we see a time of tectonic shifts. Just imagine that since 2016, 304 insurance companies have left the domestic market. It was a painful but critically necessary path of cleansing. The industry has gone through a digitalization revolution, withstood the tightening of solvency requirements in 2019, survived the large-scale “Split” in 2020, and implemented the new, progressive Law of Ukraine “On Insurance”. And all this took place against the backdrop of Russia’s full-scale invasion and unprecedented security uncertainty. This time has become a period of rigorous transparency and the achievement of real solvency for those who stood their ground.

Ahead of us lies a new, equally serious challenge — integration into the European financial space, which will inevitably bring even stronger competition. Market participants have limited time to consolidate their positions within the country and prepare to operate under EU rules. For successful adaptation and increasing the competitiveness of domestic insurers, it is critically important to remove local barriers not inherent in European practice, for example, to optimize excessive financial monitoring requirements in the non-life insurance segment, and to comprehensively regulate the issues of insurance intermediaries’ activities in Ukraine.

So, with what baggage have we crossed the 2025 milestone?

Concentration and financial strength as the market landscape

As of the end of 2025, the market landscape looks as consolidated as possible. There are 47 companies operating in the non-life insurance sector, and only 10 remain in life insurance. Today, this is a highly concentrated and fiercely competitive environment where the top ten companies accumulate 74.3% of the entire non-life market. In the life insurance segment, the situation is even more illustrative: the entire market consists of these 10 players, with one single insurer holding almost 50% of the industry.

Here is the top 10 of the insurance market in 2025 by insurance premiums:

Despite the war and highly complex working conditions, companies have demonstrated impressive resilience. The net financial result of both segments amounted to UAH 6.8 billion, with only 9 insurers finishing the year with losses. At the same time, the market as a whole remains reliably capitalized, as eligible assets to meet solvency requirements reached UAH 86.2 billion, which is 31% higher than in 2024. The strong operational health of the non-life sector is best evidenced by the figures: the portfolio loss ratio is 49.1%, the combined ratio dropped below the psychological threshold and stands at 97%, while operational efficiency fixed at a high level of 88.6%. Such results of our non-life market can only be sincerely applauded.

Record premiums and the MTPL phenomenon in Non-Life

Following the results of 2025, the non-life market showed a record jump in recent years, adding 41.2%. The total amount of collected premiums reached UAH 65.6 billion compared to UAH 46.5 billion a year earlier. If we dive into the structure of this portfolio, we will see that it remains traditionally unchanged, and 83% is formed by classic “motor” lines, i.e., CASCO, MTPL, and “Green Card”, as well as health insurance. However, the real phenomenon and the main driver was exactly MTPL.

It is worth recalling that after the updated law came into force, insurers finally got the opportunity to freely regulate prices for MTPL. Moreover, the rules of the game for the consumer have radically changed, and now payouts are prioritized directly to service stations, without taking into account the deductible and depreciation of parts, which previously could “eat up” up to 70% of the compensation. This gave a tremendous boost to growth. As a result, the share of MTPL grew to 35% of the total portfolio, reaching UAH 23 billion. This is a colossal increase of 123% compared to last year and an impressive 270% compared to 2023.

Other systemic lines also showed confident dynamics. CASCO premiums amounted to UAH 15.9 billion, adding 20.4%, which is an expected consequence of inflationary processes and the growing demand of car owners for war risk coverage. Health insurance generated UAH 10.2 billion with a 17% increase, directly reflecting medical inflation and the rising cost of clinic services. At the same time, receipts from the “Green Card” expectedly decreased by 4% and amount to UAH 5.3 billion. This is explained by the fact that the intensity of trips abroad has somewhat dropped, and a portion of our citizens already buy policies directly in their countries of temporary residence.

Let us present the top 5 insurers by premiums by lines of business:

Insurance as a tool to protect business from war

Property lines of business deserve special attention. Although their share in the total portfolio is small and amounts to only 5.8%, the volume of premiums showed a significant growth of 30%. This jump is directly related to society’s demand for real estate insurance against the consequences of war. Interestingly, 75% of clients here are legal entities. Ukrainian business is actively seeking protection and finding it through the involvement of foreign reinsurance capacities, in particular such global giants as Lloyd’s of London. And although this line still remains unprofitable with a combined ratio of 111.11%, insurers continue to faithfully fulfill their mission, offering war risk coverage services to an increasing number of enterprises and individuals.

Payouts and taxes as the reverse side of the coin

The rapid growth in premiums is accompanied by equally rapid payouts to clients. The total amount of indemnities in the non-life segment was UAH 24.7 billion, which is 30% more than in 2024. The lion’s share — 91%, or UAH 22.4 billion — was generated by the big four drivers: companies paid UAH 7.7 billion for CASCO (a 23% increase), UAH 6.6 billion was reimbursed for MTPL (plus 47.5%), health insurance brought UAH 5.6 billion in payouts (adding 20.2%), and UAH 2.4 billion was returned under the “Green Card” (up 9.9%). Along with record MTPL premiums, we see unprecedented payouts, as this line of business generates over a quarter (26.7%) of all indemnities in the market, but at the same time provides more than a third of all tax revenues of the industry thanks to the 3% tax on income under insurance contracts.

We present the top 5 rating by payouts by lines of business:

The invisible war for the client in distribution channels

As for how Ukrainians buy insurance, there have been no radical quantitative changes, but there are certain shifts. The agency and proprietary networks of companies continue to totally dominate, providing 57% of all non-life sales. Direct sales account for 14%, and bancassurance stably holds the bronze with a 13% share. At the same time, online aggregators have already captured 15% of the MTPL sales market and 17% in the “Green Card” segment. This trend indicates that in the segment of standardized (particularly, compulsory) insurance products, consumers increasingly prefer digital sales channels. However, one should not expect total digitalization of the market due to the specifics of the service itself. Insurance is a complex financial instrument that requires a conscious approach and is rarely a subject of spontaneous demand. That is why the preservation and development of classic agency networks is an objective necessity and a basic condition for the high-quality functioning of the industry. EU markets have a developed and strong agency network that provides more than 80% of insurance premium revenues, so our task is to be ready to compete. Automated platforms are currently unable to fully replace a qualified financial consultant whose competencies include individual risk assessment, explaining coverage conditions, and supporting the client at the claims settlement stage. The most illustrative in this context is the life insurance sector, where 83% of premiums are generated precisely through agency distribution channels. Long-term financial planning, savings programs, and life insurance objectively require personalized communication, professional expertise, and the formation of a high level of trust, which goes beyond the capabilities of digital algorithms.

Savings, health, and trust in Life insurance

The life insurance sector is stably formed by the participants of the PRIMA project, representing 9 out of 10 operating companies. The total volume of this market grew by 9.9% compared to last year and reached UAH 6.2 billion (including health insurance premiums). The portfolio distribution remains classic, with 70% falling on savings and 30% on risk insurance. An extremely positive signal is that clients increasingly trust companies, because the volume of recurring premiums for existing business grew by 11%, and sales of new policies added 13% (in savings). In addition, Ukrainians have begun to terminate agreements much less frequently: the share of early terminated contracts dropped to 31% compared to 49% a year earlier. This is direct evidence that citizens are starting to perceive life insurance as a reliable tool for preserving funds.

Rankings of life insurers by premiums in 2025:

An interesting new trend is the expansion of life insurers into the health segment. Already 4 companies (MetLife, TAS Life, ARX Life, UNIQA Life) have obtained the relevant licenses and, as of the end of the year, collected UAH 240.5 million in premiums. Although this is currently a niche product, accounting for almost 3% of all health insurance in the market, it has significant potential to become an independent, substantial share in companies’ portfolios. The total amount of payouts in life insurance was UAH 1.8 billion (of which UAH 1.7 billion was provided by NASU members). About 77% of indemnities traditionally fall on contracts with a savings component.

Rankings of life insurers by payouts in 2025:

It is worth paying attention to exclusive data from NASU participants. Payouts for the “survival” risk in 2025 jumped by 28% at once, which is an important signal for the market to carefully monitor the process of contract renewal in 2026.

The role of NASU in the market

Finally, it is important to note the colossal impact of the participants of the National Association of Insurers of Ukraine (NASU) on the formation of these results. As of the end of 2025, they occupy 79.2% of the non-life market, having generated UAH 52 billion in premiums, which is 45% more than the previous year. The lion’s share of this growth is driven by the demand for MTPL and war risks. In the top 10 non-life companies, 9 are our members, and among the participants of the PRIMA project — all 10. They are the ones who paid the largest share of all indemnities — 78%, or UAH 19.3 billion, and occupy the first ten positions in the payout ranking.

For the first time, NASU publishes such a comprehensive market cross-section along with our comments and analytics.

And for those who do not like to read much but prefer visualization and figures — welcome to our website, where actual market indicators are constantly published https://nasu.com.ua/indicator/ as well as reviews https://nasu.com.ua/oglyady-rynku/, in particular, the 2025 review in the usual format https://nasu.com.ua/oglyad-strahovogo-rynku-ukrayiny-2025/.