New Market Research Report: Ukraine Insurance Report Q2 2016
New Financial Services research report from Business Monitor International is now available from Fast Market Research
[ClickPress, Tue Mar 01 2016] The insurance market in the Ukraine is largely underdeveloped, with limited rates of both penetration (premiums against GDP) and density ( premiums per capita). Several years of economic decline and political instability have impacted heavily upon household income levels, dampening demand for a range of insurance products, and while we expect the country to exit recession in 2016, growth expectations remain tentative in light of the weak exports outlook and the reliance upon economic reform and accompanying international financial support. The country's insurance mar ket does offer substantial long- term growth potential, particularly as it is growing from such a small base, though it is unlikely to attract major foreign investment in the short-term in light of the poor operating conditions and market instability.
Key Updates And Forecasts
Italian bank UniCredit has agreed to sell its Ukrainian subsidiary to ABH Holdings, a subsidiary of Russia's Alfa-Bank. Although mainly a financial services and banking provider, in Ukraine UniCredit also has a small non-life insurance business providing motor, property, health and travel insurance.
Full Report Details at
The non-life market in the Ukraine is expected to record slow growth of around 2.5% annually, in local currency terms, between 2016 and 2020 leading to total premiums of UAH29.3bn by the end of the current forecast period. The ongoing devaluation of the hyrvnia means the outlook is weaker in US dollar terms with premiums of USD1.2bn forecast for 2020, up from USD1.1bn in 2016.
The growth outlook is more positive in the life insurance sector, though we note that high inflation is distorting growth rates. Overall, premiums are forecast to increase by over 14% annually over the forecast period, though again we note growth will be significantly slower in US dollar terms. By 2020 the life sector is forecast to write premiums of UAH6.0bn (USD244m).
The Ukraine Insurance Report has been researched at source and features BMI Research's independent assessment and forecasts for the insurance sector. It examines industry developments, key growth drivers and risk management projections, including the macroeconomic situation, government policy, regulatory environment and the level of development and potential for growth, broken down by line. Leading insurers are profiled, covering premiums, products and services and competitive positioning.
BMI's Ukraine Insurance Report provides professionals, consultancies, government departments, regulatory bodies and researchers with independent forecasts and regional competitive intelligence on the Ukrainian insurance industry.
Benchmark BMI's independent insurance industry forecasts for Ukraine to test other views - a key input for successful budgeting and strategic business planning in Ukraine's insurance market.
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