Ukraine continues to defend its territory and is getting closer to victory. The insurance market also faced the challenges of the war period, but continues to make efforts to protect the state on the economic front.
According to the National Bank of Ukraine, in the first half of 2022, the total amount of assets of insurers compared to the beginning of the year (before the full-scale invasion) almost did not change and amounted to UAH 65.7 billion, while UAH 48 billion. belongs to NASU members. Neither the size of eligible assets nor the volume of formed insurance reserves (UAH 36.6 billion) has decreased. During the martial law, insurers not only did not reduce, but also increased the amount of liquid assets – from UAH 14.9 billion to UAH 17.2 billion.
In particular, for the specified period, the total premiums signed compared to the same period last year decreased by 28% and amounted to UAH 17.6 billion. The dynamics of indicators for the last two quarters of 2022 indicate that the largest decline in the volume of activity occurred at the end of the 1st quarter of 2022. In the II quarter, the decline continued, but it was less rapid – insurers were able to adjust their work in wartime conditions.
Despite the difficult situation in the business environment, the NAIU community maintains a stable position. Regarding risk types of insurance, while other market participants showed a significant decrease in insurance payment receipts by more than 45% in the first two quarters of 2022, the decrease in this indicator was not so sharp for NAIU participants and amounted to 20%, thanks to which the overall decrease in the volume of premiums in the non-life segment it was about 30%.
Among 15.36 billion hryvnias. of collected insurance premiums of the non-life segment for the first half of 2022, the key share belongs to NAIU participants (19 companies out of 127) and amounts to 68.7% or UAH 10.55 billion. The main foundation for the market traditionally remains land transport insurance (except railway). The driver of support for the insurance market was the conclusion of contracts under the “Green Card” policy. During the war, this type of insurance increased by 76%. NAIU participants played a key role in this process, collecting almost 90% more premiums compared to the same period in 2021. Claims paid under contracts decreased by more than 30%. The share of payments on the market by NAIU participants was more than 75%.
In terms of insurance premiums, the life segment decreased by 15%. Among NAIU participants, the indicator of collected premiums was UAH 2.1 billion, which is 95.4% of the total amount in the life insurance segment (10 companies out of 13). Claims paid of NAIU participants for this segment amounted to UAH 354.63 million, which almost corresponds (minus about 3%) to the first half of 2021. At the same time, NAIU participants covered almost 99% of payments among all life companies.
In general, the National Bank of Ukraine gave a high assessment of the activity of insurers based on the results of the first half of 2022. In particular, the Deputy Head of the National Bank of Ukraine noted: “The insurance market is passing the test of war with dignity. It became the catalyst that showed the real state of affairs of each insurer. Financially stable companies continued their activities, adjusted their work and ensured the fulfillment of their obligations to consumers. Such companies have proven their viability and are ready to work on the market in the future, even in conditions of war.”
Detailed information through interactive data visualization can be found on the website NAIU.
