To date, the insurance market of Ukraine consists of 460 insurance companies, 115 of which are companies with foreign investments. In the 2000s, the Ukrainian insurance market has left a lot of international players, for example, AXA Group, UNIQA (previously - PJSC "Credo-Classic»), PZU Ukraina, Generali Garant, «Alfa Insurance», «Allianz Ukraine», «AIG Ukraine ", which saw a high potential growth of the Ukrainian insurance market, according to" Investgazeta. "

Of all the Eastern European countries, Ukraine has the most potential, given the number of the population.

Despite the high expectations of international players in the last five years has not made the necessary reforms, both legislation and the market in general. This led to the fact that the insurance market is going through a period of stagnation and does not show significant growth. To a large extent this is due to the policy of credit insurance, because the insurance market is directly related to the credit market. Almost 40% of the insurance market was credit insurance. It can be concluded that the Ukrainian insurance market has failed investors.

In the past two years, there was a small increase in the dynamics of the market. Compared with 2010 to 850.2 mln. (7%) increased the amount of insurance premiums. The main factor in the growth of gross premiums by increasing their volume, in particular, on those types of insurance as mandatory insurance (increase in gross insurance payments 392,066.3 mln. - 15.37%), liability insurance (premiums increase by 15 , 8 mln. - 2.5%), private insurance (increase in insurance premiums 549,645.6 mln. - 44.9%).

A large number of insurance companies has serious problems with insurance payments. Typically, this is due to the high administrative costs.

The main problem is the lack of capitalization of the Ukrainian insurance companies.

Greater risks to the insurance market also include: the nature of price competition, the high proportion of administrative costs, problems with reinsurance, bad risk management policy. Most companies are not ready to work according to international standards, according to "Investgazeta."

Agricultural insurance

Agricultural insurance has great prospects for development, given that the agricultural sector in Ukraine - one of the most dynamic and attractive to investors. Powerful agricultural sector is the basis of food security. Ukrainian agricultural enterprises have great potential for development, and are of special interest among foreign investors. The share of the agricultural sector in national GDP is about 15%. Even at the height of the financial crisis, the Ukrainian agricultural companies have received more than 12% of world investment.

To date, the level of agricultural insurance in Ukraine is only 5-7%, while in Poland the figure stands at 30%, in Germany - more than 60%. State of Ukraine is interested in creating an effective system of agricultural insurance (for example, one of the reforms in this market previously considered to agricultural insurance compulsory).
In particular the recently adopted Law "On peculiarities of agricultural insurance with state support," which gives farmers the right to receive compensation from the state budget amounts paid under contracts of agricultural insurance. Six months after its entry into force should earn Agricultural Insurance Pool. In general, the adoption of the law - a positive step towards the development of agricultural insurance. However, this must not stop. Should be developed for law normative-legal base, that this law actually earned the benefit of farmers: prescribe a mechanism for obtaining compensation, and make it as accessible and transparent.

It is necessary that the Agricultural Insurance Pool was enough capital to cover all the risks that may occur due to bad harvest year. In addition, a major problem is the high cost of agricultural insurance, as this is a high-risk insurance product. On the other hand, at present in the Ukrainian market are hard to find big companies that are seriously engaged in the reinsurance of risks. For example, recently the Ukrainian market went two major reinsurer: Swiss Re, Munich Re, which specialized in including in the agricultural insurance.

State today to solve a lot of problems, so that agricultural insurance is really working.

Life insurance and medical insurance.

Voluntary health insurance market has huge potential for development in Ukraine. This is due to the fact that today the market is poorly developed, but has the greatest growth. Many large companies insure their employees, providing them with a benefits package that is an added benefit for employees when choosing an employer. Even in some countries of the European Union, this view does not develop so quickly. For example, Poland analyzes Ukrainian experience of voluntary health insurance in order to use his example at home.

In Georgia, the government has gone the way of the abolition of the budget financing of health. Therefore, the medical service is developed by health insurance.

However, voluntary health insurance is quite unprofitable product, as consumers of services are always trying to make the most of all medical services that are provided by insurance. This forces the insurance companies to establish a high percentage of the franchise if the customer wishes to use expensive medical services.
In general we can say that the market for medical insurance will develop rapidly in the coming years.

Prospects for the development of the insurance market in Ukraine in the coming years.
The insurance market in Ukraine will actively develop, subject to legal and regulatory framework, developed on the basis of international standards. This is possible, subject to changes in legislation.

It is also necessary to increase the popularity of insurance services. Today, most people perceive insurance as additional commitments, for example, as a condition of the issuance of bank credit. The level of public confidence in the insurance industry is still quite low. So you need to make this market as accessible, transparent and understandable to the public.

Normal situation, when the ratio of the size of the insurance market received insurance premiums to insurance payment is 70-80%. Now this figure in Ukraine is at the level of 20-25%.

This is due to the presence on the market of a large number of small insurance companies, which, in fact, are not engaged in insurance, and working on the system to provide benefits, subject to a sufficient number of insurance premiums. They do not have adequate reserves and therefore the level of non-payment for insurance claims is very high and reduces public confidence in the effectiveness of the insurance itself.
 

RBC-Ukraine. Market Research