UKRAINIAN INSURANCE MARKET DURING THE WAR

Abstract

The entire territory of Ukraine is in crisis due to the military aggression of the Russian Federation, which entails economic decline in all sectors of the economy. This paper presents a study of the insurance market in extremely difficult conditions. It is found that at the beginning of the introduction of martial law, insurance companies faced a number of problems, but the coronavirus crisis helped to quickly organize work remotely. The article analyses the dynamics of the number of insurance companies and notes the introduction of a new market participant, which will ensure the promising development of exports of Ukrainian origin. An analysis of the key performance indicators of companies and insurance products that attracted the most premiums is presented. The index of insurance market penetration is calculated to determine its development in the country's economy and for clarity in comparison with the indicators of other countries. Examples of insurance products that allow covering risks from military operations are demonstrated, which shows the readiness of insurance companies to respond to changes in a timely manner, but due to the possible large amounts of compensation, companies set a number of restrictions, which creates a small demand for the product. The article considers that the state is developing comprehensive insurance against war risks and finds out that the insurance market regulator makes an important contribution to its transparent and reliable development. Despite the downturn in business, companies continue to work to ensure profitability. Therefore, the introduction of an effective system of war risk insurance is an important task for the country, which requires unity in cooperation between the state, insurance market participants and international organizations, which will ensure both stability in the activities of society and the possibility of raising funds for the development of the country.