Ukraine Insurance Report 2008 |  | Author: Business Monitor International
Publisher: MarketResearch.com
Category: Book
Buy New: $530.00
as of 9/9/2010 08:58 CDT details
Seller: Amazon.com
Format: Download: PDF
Media: Digital
Pages: 35
ASIN: B003GY4Z0S
Publication Date: May 28, 2008
Availability: Available for download now
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| Editorial Reviews:
Product Description
Corporate press releases and articles in the mainstream media tend to highlight the opportunities in theinsurance sector of Ukraine. The country has the largest population of any country in Central and EasternEurope after Russia (and, if one includes it in the region, Turkey). Large agricultural, metallurgical andnuclear energy industries suggest that there are plenty of non-life risks to be covered. Life insurance is atan embryonic stage of development. The wave of foreign companies that are seeking to set up - or, morelikely, buy - operations in Ukraine implies that there are few barriers to entry.
Unfortunately, it is possible to present the same facts in a negative light. The population is poor andageing. The high non-life penetration implies that any growth in premiums will depend on continuingsteady growth in the economy. Ukrainians’ lack of interest in life insurance could reflect a total lack ofconfidence in financial institutions. BMI’s analysis is that potential absolute growth in non-life premimsis about the only aspect of Ukraine’s insurance sector (other than its general openness to new entrants)which compares favourably with other countries in Central and Eastern Europe. It may well be thatdisappointed foreign groups eventually look to leave, in order to pursue opportunities elsewhere.
The wildcard is the political environment, which is one of the most volatile in Central and EasternEurope. If all goes well, Ukraine just might make significant progress with essential legislative,infrastructural, legal and tax reform over the next five years. If all goes badly, policy-making andbureaucracy could stifle the development of the non-life sector and effectively prevent the developmentof life insurance in Ukraine.
For the time being, the non-life segment is the insurance sector of Ukraine. Of the 355 companies that areactive in the non-life segment, 255 are operations that each wrote, on average, US$1.7mn of business incalendar-year 2006. Well regulated, modern and progressive insurance sectors tend not to includeinsurance operations that are so numerous or so small. A sharp contraction in the numbers of such minuteinsurers would be a clear sign that the insurance sector is developing in a positive way.
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