|
|
 |
|
Viewing report
|
|
|
|
Ukraine Insurance Report 2008
Business Monitor International, May 2008, Pages: 35
BMI's Ukraine Insurance Report provides independent forecasts and competitive intelligence on Ukraine's insurance industry.
Corporate press releases and articles in the mainstream media tend to highlight the opportunities in the insurance sector of Ukraine. The country has the largest population of any country in Central and Eastern Europe after Russia (and, if one includes it in the region, Turkey). Large agricultural, metallurgical and nuclear energy industries suggest that there are plenty of non-life risks to be covered. Life insurance is at
an embryonic stage of development. The wave of foreign companies that are seeking to set up – or, more likely, 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 and ageing. The high non-life penetration implies that any growth in premiums will depend on continuing steady growth in the economy. Ukrainians’ lack of interest in life insurance could reflect a total lack of confidence in financial institutions. BMI’s analysis is that potential absolute growth in non-life premims is 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 that disappointed 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 Eastern Europe. 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 and bureaucracy could stifle the development of the non-life sector and effectively prevent the development of life insurance in Ukraine. For the time being, the non-life segment is the insurance sector of Ukraine. Of the 355 companies that are active in the non-life segment, 255 are operations that each wrote, on average, US$1.7mn of business in calendar-year 2006. Well regulated, modern and progressive insurance sectors tend not to include insurance operations that are so numerous or so small. A sharp contraction in the numbers of such minute insurers would be a clear sign that the insurance sector is developing in a positive way.
Customers who bought this item also bought
Indian Insurance Industry: An Analysis
China: An Insurance Giant
India ? The Next Insurance Giant in Asia-Pac
Intellinews Russian Insurance Sector Report
General Insurance Market Assessment 2006
Thailand Insurance Sector
Japanese Insurance Industry - Global Strategic Business Report
South Korean Insurance Industry Analysis (2007)
|
|
|
|
