The Ukrainian insurance market could grow sevenfold following accession to the EU
This was stated by Andriy Pyshnyy, Governor of the National Bank of Ukraine, during the Conference on Ukraine’s Recovery in Gdańsk, according to Interfax-Ukraine.
According to him, the Ukrainian insurance sector has already undergone a major clean-up and transformation, and is now beginning to attract the attention of international investors.
If the NBU’s forecasts prove accurate, the insurance market could grow several-fold within the next five years alone.
Pyshnyy emphasises that this will require investment and further alignment of Ukrainian legislation with European standards.
“Today, there are all the right conditions for this, but once again, we need capital, we need investors, we need transparency, we need adaptation, and we need understanding,” the NBU Governor emphasised.
At the same time, he called on European partners to take a closer look at Ukrainian insurers.
According to the head of the NBU, companies that have managed to operate and meet their obligations during a full-scale war have already demonstrated their resilience and professionalism.
“I think that each of you, having worked throughout a full-scale war, will view this market in a completely different light. You will view competition, solidarity, capacity and capability in a completely different light,” noted Pyshnyy.
The National Bank notes that the Ukrainian insurance market is increasingly coming to the attention of international players.
According to Pyshnyy, investment deals are already taking place in the market, and further entries by foreign companies can be expected this year and next.
For the time being, foreign insurers cannot operate directly in Ukraine – to do so, they need to acquire local companies or set up a new legal entity – whilst the possibility of operating through representative offices will only arise once Ukraine joins the EU.
“Once we join the EU, we will certainly be obliged to open up the market to European players. But let’s take this step by step,” said the NBU governor.
Once Ukraine joins the EU, the rules will change: European companies will be able to operate through their representative offices, as is the case in the single European market.
The NBU compares the current reform of the insurance sector to the large-scale restructuring of the banking system following 2014.
The only difference is that the insurance market is undergoing its transformation much more smoothly – without bankruptcies, high-profile crises or public outcry.
According to the National Bank’s estimates, Ukraine’s banking sector already complies with European regulatory requirements to approximately 78 per cent. For the insurance market, this figure stands at around 55 per cent.
This is precisely why further European integration could become one of the most powerful drivers for the sector’s development.
As Pyshnyy pointed out, this is not just about insurance policies or claims payments. In most EU countries, insurance companies are among the largest institutional investors, channelling funds into infrastructure projects, business, housing construction and economic recovery.
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