NBU summed up the results of the insurance market reform: what has changed in three years of war

According to НБУ: The National Bank summarized the results of the first stage of the transformation of the insurance market, particularly its transparency. The results were presented by NBU Head Andriy Pyshny and Deputy Dmytro Olijnyk. They met with leading insurers and associations, and also held a presentation for journalists.

“The market has gone through this transformation phase without drama, with an understanding of responsibility to the country. What was striking for us during the analysis of the data was that the most significant work for the quality of the sector was carried out together with participants during an extremely difficult period for the country as a whole – over the past three years, during the full-scale war,” said the NBU Head.

Prior to the National Bank becoming the regulator of the insurance market, there were many systemic problems that were exacerbated by the war. Now the insurance market is financially stable and transparent, open to consumers and attractive to investors.

Important Indicators

• The level of insurance penetration (the ratio of earned premiums to GDP) increased from 0.7% to 0.84% of GDP over the past year;
• The assets of the insurance segment grew by 42% over 5 years, despite the reduction in the number of insurers by 3.5 times;
• Over 90% of insurance companies' assets are highly liquid instruments;
• The net profit of risk insurers for January – September at the level of UAH 3.4 billion is a historical maximum.

Future Challenges

One of the main challenges is the implementation of the Solvency II Directive, which will require insurers to have specialists of various profiles and to enhance their qualifications. The NBU, together with the market, will work on the development of corporate governance and internal control systems, improving the quality of services and the philosophy of barrier-free access.

“All these innovations will also require insurers to have a sufficient number of specialists of the appropriate profile: actuaries, risk managers, underwriters, investment managers. We understand that there is a shortage of personnel in the market, so we urge companies to invest in the development of human capital, to unite and together seek new opportunities,” summed up Dmytro Olijnyk.

The National Bank of Ukraine presented the results of the transformation of the insurance market, which has become more resilient and transparent. The indicators show positive shifts in the industry, but insurers face new challenges related to the implementation of international standards and personnel development. These trends promise further development and improvement of service quality in the insurance sector.