Uman NUH | today: 12/22/2024
| Author(s) |
Nepochatenko Olena O., Doctor of Economics, Professor, Rector of Uman National University of Horticulture, Head of Department, Uman National University of Horticulture Prokopchuk O.T., Candidate of Economics, , Uman National University of Horticulture, Ukraine Malyovanyi M., Doctor of Ekonomikal Sciences, , |
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| Category | Economics | ||
| year | 2024 | issue | Issue 105 part 2 |
| pages | 7-16 | index UDK | 368 | DOI | 10.32782/2415-8240-2024-105-2-7-16 (Link) |
| Abstract | The development and efficient functioning of Ukraine's insurance market is crucial for ensuring economic stability, protecting the interests of citizens and enhancing the country's investment attractiveness. The insurance market, acting as a protective mechanism against financial risks, contributes to financial security and stability for both individuals and businesses, which in turn creates favorable conditions for sustainable economic growth. The Ukrainian insurance market is highly concentrated and divided into two main categories: life insurance and non-life insurance. Life insurance accounts for a much smaller share of the market, approaching 10% on average over the period under review, while risk insurance (motor, liability, and property insurance) is the dominant segment, accounting for 90 % of the market. As of 2023, there were 109 insurance companies operating in the Ukrainian insurance market, 97 of which were in the non-life segment and 12 in the life segment. However, the majority of the market is concentrated in the hands of a few large companies, such as UNIQA Insurance Company, TAS Insurance Group, ARX Insurance Company, Arsenal Insurance Company, and VUSO Insurance Company, which hold leading positions in terms of premiums and capitalization. It should be noted that many small companies face difficulties due to high competition and economic challenges. According to the National Bank of Ukraine, the total volume of insurance premiums continues to grow, even in a difficult economic environment. One of the biggest challenges for the Ukrainian insurance market remains the economic instability caused by the military conflict and crisis. The war that began in 2022 had a significant impact on the operations of insurance companies, in particular on property and motor insurance, which suffered from the destruction of assets. Over the five-year period, insurers' assets grew steadily, from UAH 29.7 billion in 2019 to UAH 42.7 billion in 2023, up almost 1.5 times in five years. In the Ukrainian insurance market, the leaders in terms of capitalization traditionally include large companies that hold a significant market share and have stable financial results. Among the most capitalized companies in Ukraine are ARX Insurance Company, UIKA Insurance Company, INGO Insurance Company, PZU Ukraine Insurance Company, TAS Insurance Group, etc. However, despite the difficulties, insurance companies continue to adapt, implementing new strategies and reformatting their products to meet modern challenges. Many companies have begun to pay more attention to digital channels of interaction with customers, providing access to insurance services even in difficult conditions. The current state of the Ukrainian insurance market is characterized by significant challenges, including economic instability, war and competition. However, the market is gradually recovering, showing signs of growth and adaptation to new conditions. Insurance companies that can adapt to these trends will have a competitive advantage and opportunities for further growth. The development of the Ukrainian insurance market in the face of current challenges requires a comprehensive approach that combines adaptation to economic instability, introduction of innovative insurance products and increasing public confidence. Despite significant difficulties, such as economic turbulence and changes in the regulatory environment, the Ukrainian insurance market has the potential to grow by improving the quality of services, developing digital technologies and expanding cooperation with international partners. The implementation of these areas will help stabilize and gradually strengthen the positions of insurance companies, which will allow them to respond more effectively to current challenges and contribute to the sustainable development of the market as a whole | ||
| Key words | insurance, insurance market, insurance organizations, insurance coverage, risks, challenges, digitalization | ||