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Life insurance
The share of life insurance in population spending over the last
five years increased almost by 11 times. This way, the population’s
habit to accumulate money is renovating and consequently there is
an increase of demand on financial services expected in the nearest
future.
Domestic entrepreneurs mainly choose long-term life insurance.
Therefore the life insurance market by its volumes considerably
exceeds the market of non-state pension funds. But it still gives
way to the banking sector (as of January 1, 2012 bank assets
exceeded insurers’ assets by 10 times).
Gross life insurance premiums in 2011 made UAH 1 346,3 mln.,
that is by 9,6% more than in 2010 (in 2010 – UAH 906,5 mln.).
The structure of gross insurance premiums in 2011 was as
following: UAH 1 182,8 mln. (or 87,8%) - premiums from physical
persons; UAH 163,6 mln. (or 12,2%) - premiums from legal persons.
In 2011 the number of physical persons insured increased by 45,2%
(1 238,8 thousand
copmpared to 670,6 thousand in 2010). As of 31.12.11 there were
3 414,0 thousand physical persons insured (as of 31.12.10 – 2 890,2
thousand people).
Gross life insurance claims in 2011 made UAH 70,6 mln., or by
34,2% more than in 2010. Annuity payments amounted to UAH 4,9 mln.
in 2011, that is by 16,7% more than in 2010. In 2011 redemption
sums paid made UAH 119,2 mln., that is by 54% more than in 2010. In
2011 life insurance reserves made UAH 486,5 mln. (in 2010 – UAH
396,2 mln.). Eleven
life insurers showed negative growth of life insurance reserves
due to premature termination of insurance contracts. Life insurance
reserves in two life insurance companies in 2011 made UAH 144,4 and
105,6 mln. (growth by 26,6% and 19,4% respectively).
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Medical insurance The national system of health protection is
financed mainly from the state and local budgets,
funds of which are distributed centrally according to available
capacities of health protection institutions without taking into
account the quality and volume of provided medical services. In
operating system of health protection the patient is considered as
a factor and an article of expenses. Financing of the branch is of
a great concern: in the state budget of Ukraine for 2011 funds for
health protection were calculated in the amount of UAH 41,5 bn. or
3,4% of GDP, and compared to 2010 it is by 0,24% less (in 2010 —
3,64%).
Financing of public health services at the expense of insurance
is insignificant and is represented only by voluntary kinds of
personal insurance, in particular, medical insurance (continuous
health insurance) and illness insurance, which account only for
1,5% of budgetary financing of public health services.
There are more than 120 insurance companies working at the
medical insurance market, provided with developed network of
separated divisions and experienced specialists, which have
concluded agreements with medical institutions on provision of
medical services to the insured and effective “assistance”
system.
Medical insurance (continuous health insurance) in 2011 was
characterized by the following numbers: insurance contracts
concluded – 1360,7 thousand, insurance premiums - UAH 1143,1
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mln., of them UAH 86,4 mln. paid to reinsurers, insurance claims
- UAH 752,4 mln., claims ratio - 65,8 %.
In 2011 874,2 thousand insurance contracts were concluded on
voluntary health (sickness) insurance, insurance premiums made UAH
185,5 mln., of them UAH 2,6 mln. paid to reinsurers, insurance
claims made UAH 34,4 mln., claims ratio was 18,5%.
Travel insurance Priority touristic activities in 2011, as well
as before, remained domestic and international
tourism. As a whole, domestic tourism in Ukraine accounts for
48% of tourists, serviced by licensees, 40% for outgoing and 12%
for incoming tourism.
In 2011 in comparison with 2010 the volume of services, provided
by licensed travel agencies (tour operators), grew by 20,1% and
reached UAH 9,8 bn.
In 2011 out of 24,5 mln. of foreigners which visited our
country, 1,2 mln. arrived for the purpose of tourism, by 20% more
than in 2010. Upon that only 343,5 thousand of organized foreign
tourists made use of the services offered by Ukrainian tour
operators. In 2011 foreign tourists arriving in Ukraine were mainly
from Russia, Poland, Belorussia, Germany, USA, Italy, Romania,
Turkey, Great Britain, Israel.
In 2011 20,3 mln. of the Ukrainians travelled outside Ukraine,
of them 1,6 mln. for the purpose of tourism - by 30% more in
comparison with 2010. Upon that domestic tour operators
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provided services to 1,4 mln. tourists only. Countries most
visited by Ukrainian tourists in the previous year were: Turkey,
Russia, Egypt, Poland, Romania, UAE, Greece, Germany, Israel, Czech
Republic.
Incoming tourism in 2011 made 604,7 thousand tourists. Voluntary
medical expense insurance in 2011 was characterized by the
following numbers:
insurance contracts concluded - 1864,4 thousand, insurance
premiums made UAH 277,3 mln., of them UAH 19,7 mln. paid to
reinsurers, insurance claims made UAH 102,7 mln., claims ratio
-37,0%.
Compulsory medical insurance of foreign citizens which are
temporarily staying in Ukraine in 2011 showed the following
results: insurance contracts concluded - 9,9 thousand, insurance
premiums - UAH 2,9 mln., of them no shares paid to reinsurers,
insurance claims - UAH 1,1 mln., claims ratio - 38,5%.
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Accident insurance Annually in Ukraine the number of traumatized
and dead in non-production accidents per 100
thousand people is 3 times higher than in other European
countries. Since 1991 one million people died, that is 99% of
casualties which suffered from dangerous influence of the living
environment, and more than 44 mln. were traumatized, mainly
Ukrainian citizens of a working age. The number of traumatized and
dead at non-production sites exceeds the number of those injured at
production sites by 60 times, and by 200 times those who suffered
in natural or technogenic emergency situations.
Annual losses of the national economy from traumatism exceed UAH
20 bn. and account for more than 4% of Ukrainian GDP.
In 2011 in Ukraine 41217 people died in non-production
accidents, of them 1016 children aged up to 14 years. Compared to
2010 the number of dead at non-production sites decreased by 3,8%
(42826 people in 2010).
In 2011 the number of industrial accidents decreased by 11,2%
compared to 2010 (from 13109 to 11640 people). The number of
fatally traumatized increased by 0,9% or by 6 accidents (from 645
to 651). The number of insurance industrial accidents decreased
almost in all regions of Ukraine. In 2011 compared to 2010 the
number of occupational diseases grew by 8,7% (from 4965 to 5396).
The highest level of occupational diseases has been registered in
Donetsk (32,6%), Lugansk (26,2%), Dnipropetrovsk (18%) and Lviv
(10,5%) regions. The number of professional diseases in these
regions makes 87% of the general number throughout Ukraine.
Voluntary accident insurance in 2011 had the following results: 7
369,8 thousand insurance contracts concluded, insurance premiums
made UAH 566,1 mln., of them UAH 121,0 mln. paid to reinsurance,
insurance claims amounted to UAH 38,4 mln., claims ratio made 6,8%.
Compulsory personal traffic accident insurance based on the results
of 2011 demonstrated the following numbers: there were 587 767,9
thousand contracts concluded, insurance premiums made UAH 140,6
mln., of them UAH 8,8 mln. were paid to reinsurance, insurance
claims made UAH 4,2 mln., claims ratio was 3,0%.
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Motor vehicle insurance As of the end of 2011 total amount of
registered vehicles in Ukraine reached 9,6 mln. The
growth of the number of vehicles over the last several years
occurred due to the growth of the number of motor cars, which makes
7,9 mln.
Half of out-of-date motor-vehicle pool of Ukraine (50%) is made
by the cars which have been produced before 1989, that means they
are over 18 years. 31% of cars are at the age from 5 till 18 years.
Thus, within our country cars aged less than 5 years make only 19%
of a motor-vehicle pool, and middle age of motor vehicles is 19
years.
In 2011 in Ukraine there were 220,6 thousand new automobiles
sold, that is by 35,6% more than in 2010. Financial capacity of the
Ukrainian market of new light motor vehicles in 2011 made EUR 3,6
bn., that is by 35% more than in 2010. The leader of automobile
sales (more than 30%) were not expensive cars with price EUR 6,5-10
thousand. The second by popularity (more than 20%) were automobiles
with price EUR 10-15 thousand. At third place (more than 19%) were
cars at price category of EUR 15-22 thousand. The average price of
an automobile in 2011 was EUR 16,3 thousand.
In 2011 the new financial institutions entered the market of
auto crediting, interest rates were decreasing, and banks were
offering auto credits to their borrowers with no down payments. As
a result the portion of cars sold in credit grew by 3-4 times.
However by the end of 2011 interest rates grew prominently and
rates at long-term credits even exceeded their initial values at
the beginning of the year.
Voluntary motor vehicle (except railway rolling stock) insurance
in 2011: insurance contracts concluded - 503,4 thousand, insurance
premiums - UAH 3 185,0 mln., of them UAH 539,3 mln. paid to
reinsurance, insurance claims - UAH 1 332,1 mln., claims ratio made
41,8%.
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Civil liability insurance of motor vehicle owners
In 2011 insurance premiums on compulsory civil liability
insurance of motor vehicle owners
made UAH 2 283,5 mln., that is by 33,3% more than in 2010,
insurance claims rose up to UAH 918,6 mln. or by 27,1%. For the
period mentioned the number of insurance policies increased up to
8,3 mln. (by 2,4%). For 2011 there were 104,4 thousand insurance
events settled, by 9,9% more than in 2010. The average insurance
claim in 2011 made UAH 8,8 thousand, by UAH 1194 or 15,8 more than
in 2010.
Main CMTPL insurants in 2011 were owners of light vehicles with
engine capacity up to 1600 cc (55,1% of policies concluded), with
capacity of 1600-2000 cc (11,9%) and with capacity of 2000-3000 cc
(9,6%).
The largest share in CMTPL insurance premiums in 2011 took towns
with population less than 100 thousand people – 32,9%, the city of
Kyiv - 17,8%, cities with population 100 - 500 thousand people.
Compulsory civil liability insurance of motor vehicle owners
(under additional contracts) «Green card» in 2011 was characterized
by the following figures: 660,0 thousand insurance contracts
concluded, insurance premiums amounted to UAH 288 mln., of them UAH
40,1 paid to reinsurance, insurance claims made UAH 95,2 mln.,
claims ratio was 33,0%.
Voluntary civil liability insurance of motor vehicle owners in
2011 demonstrated the following numbers: 129,7 thousand insurance
contracts concluded, insurance premiums - UAH 68 mln., of them UAH
16,5 mln. paid to reinsurance, insurance claims - UAH 15,8 mln.,
claims ratio was 13,3%.
Dynamics of compulsory civil liability insurance of motor
vehicle owners, 2005-2011
Indicator 2005 2006 2007 2008 2009 2010 2011Number of insurance
policies, thousand 2 231 2 523 4 318 6 737 7 128 8 143 8
335Insurance premiums, UAH mln. 418 442 800 1 279 1 344 1 713 2
283Average policy price, UAH 187 175 185 190 189 210 ??? Settled
insurance events, number 8 327 22 785 36 843 69 686 75 791 94 989
104 360Insurance claims, UAH mln. 35 106 195 452 554 723 919Average
insurance claim, UAH 4 183 4 665 5 280 6 489 7 308 7 608 8 802
Claims ratio, % 8 24 24 35 41 42 40
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Property insurance In 2011 aroused 60,8 thousand fires, that is
by 2,3% less than in 2010. Among the objects of
property the most fire dangerous are housing facilities (around
80% of all fires), 55% of fires emerge in dwelling houses. The main
locations of fire in housing sector are premises of dwelling houses
(46%), attics (13%), roofs (12%), kitchen (10%) and basements
(8%).
Principal causes of fire development in Ukraine are: careless
handling of fire (54,2% of their total), infringement of fire
prevention rules at installation and operation of electric
appliances (22,8 %) and infringements of fire prevention rules at
installation and operation of furnaces (9,2%). The property losses
from fires in Ukraine for the last five years exceeded UAH 3
bn.
Economic losses from fires in 2011 made UAH 2,7 bn., of them
direct material losses made UAH 802,8 mln., indirect – UAH 1 856,9
mln. (in 2010 – UAH 2,3 bn., of them direct losses made UAH 665,4
mln., indirect – UAH 1 644,1 mln.).
Negative influence of floods can be observed at 27% of the
territory of Ukraine (165 thousand sq. km.), inhabited by one third
of population. Over the last 15 years heavy floods, which caused
emergency conditions, occurred in 1995, 1997, 1998, 2001, 2008 and
this year. Thus, the average annual losses from floods in 1995-1998
made UAH 899,3 mln., in 1999-2007 they amounted to UAH 1,5 bn.,
while in 2008 they reached UAH 6 bn.
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Voluntary fire and catastrophic risk insurance based on the
results of 2011 demonstrated such figures: insurance contracts
concluded made 2 630,9 thousand, insurance premiums amounted to UAH
1863,1 mln., of them UAH 781,0 mln. paid to reinsurers, insurance
claims made UAH 157,8 mln., claims ratio made 8,5%.
Voluntary property insurance under classes, other than 7-12, had
the following results in 2011: 2 726,2 thousand insurance contracts
concluded, insurance premiums made UAH 2 428,6 mln., of them UAH
1406,3 mln. paid to reinsurance, insurance claims totaled UAH 213,9
mln., claims ratio was 8,8%.
Compulsory civil liability insurance for damage caused by fires
or accidents at high-risk facilities, including fire and explosion
dangerous objects and objects, where economic activity might cause
ecological, sanitary and epidemiological accidents in 2011: 8,1
thousand insurance contracts, insurance premiums - UAH 32,4 mln.,
of them UAH 8,3 mln. paid to reinsurers, insurance claims - UAH 0,2
mln., claims ratio - 0,5%.
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Cargo and luggage insurance In 2011 carriers of Ukraine
transported 811,7 mln. tones of cargo, by 7,4% more than in 2010.
Cargo turnover grew by 5,7% and made 426,4 bn. tkm. Cargoes
transportation by railways compared with 2010 increased by 11,7%,
including
increase of cargoes dispatch by 8,2%. Domestic sea and river
trade fleets transported 9,9 mln. tones of cargoes, by 10,7% less
than
in 2010. Cargoes transportation by river transport fell by 18,1%
compared to 2010, while by sea transport grew by 1,9%. Foreign
cargoes transportation by river transport reduced by 37,2% and by
sea transport expanded by 0,5%. Cargo handling at commercial and
fish ports and at industrial wharfs (sea and river) grew by 4,7%
and made 161,6 mln. tones. Cargoes handling of internal
transportation increased by 18,6%, import – by 11,2%, transit – by
7,8%, export – by 0,7%. The number of handled vessels – foreign and
infreight – decreased by 5,2% and made 16,2 thousand items.
Enterprises of automobile transport (including transportations
by physical persons-entrepreneurs) in 2011 carried 178,3 mln. tones
of cargoes, by 12,6% more than in 2010 and carried out cargo
turnover of 38,4 bn. tkm., which decreased by 0,9% compared to the
previous year.
During 2011 there were 90,3 thousand tones of cargoes carried by
air transport, by 2,8% more than in 2010. Cargo turnover of air
transport made 366,8 mln. tkm., by 3,2% less than in 2010.
Voluntary cargo and luggage insurance based on the results of
2011 demonstrated the following: there were 116,3 thousand
insurance contracts concluded, insurance premiums made UAH 1 242,9
bn., of them UAH 630,1 bn. paid to reinsurers, insurance claims
amounted to UAH 45,0 mln., claims ratio made 3,9%.
Compulsory carrier liability insurance for negative consequences
emergency at transportation of dangerous cargoes in 2011 resulted
in 181,2 thousand insurance contracts concluded, insurance premiums
made UAH 57,4 mln., of them UAH 8,1 mln. paid to reinsurance,
insurance claims made UAH 0,2 mln., claims ratio - 0,3%.
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Agricultural insurance Despite of lack of state support, main
technical indicators show that the results obtained in
2011 were much better, than those in 2010 and 2009. As in 2010
classical insurance prevailed at the market with small volumes of
formal agricultural risks insurance, mainly bank loan insurance.
Treaties on insurance of collateralized crops with low premium
rates (formal insurance) were mostly concluded in spring-summer for
the period till harvesting.
Significant impact on the results of crop insurance for the
period spring-summer 2011 was made by the program of forward
(collateral) purchase of the company "Khlib Investbud", that
envisaged conclusion of contracts of collateral purchase at
availability of crop insurance treaties.
The general volume of the agricultural insurance market in
Ukraine in 2011 made 786 thousand hectares of insured crop area,
insurance payments amounted to UAH 136,3 mln., 2710 insurance
contracts concluded.
Claims ratio on crops insurance in 2011 made 67,3% (in 2010 –
50,9%, in 2009 - 36,5%).
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Aviation insurance In 2011 commercial transportation of
passengers, cargoes and post carried out 36 national air
companies, which made 105,3 thousand commercial flights (growth
rate - 106,5%) during the year. About 7,5 mln. passengers made use
of services of Ukrainian air companies, that is by 23% more than in
2010. The amount of cargoes and post transported by domestic air
companies in the reporting year made 92,1 thousand tones, that is
by 4,8% more than in 2010.
For a long time the relation between international and internal
transportation by Ukrainian air carriers makes about 80-85% and
15-20% in favor of international. In 2011 6,3 mln. passengers (84%
of total amount) were transported on international lines, inside
Ukraine - 1,2 mln. passengers (16%), growth rates made 23% and 22,3
% correspondingly.
In general in 2011 regular flights between Ukraine and other
countries of the world were carried out by 9 domestic (to 48
countries) and 56 foreign (from 33 countries) companies. During the
year Ukrainian air carriers started exploitation at a regular basis
of 13 new international air routes (from Boryspil to Krakow,
Novosibirsk, Samarqand, Aktau, Stuttgart, Bishkek, Ho Chi Minh,
from Kyiv (Zhulyany) to Spanish Gerona and Valencia, from Kryvyi
Rih to Moscow, from Ivano-Frankivsk to Baku, Naples and Rome), also
4 international regular flights were renewed (from Boryspil to
Krasnodar, Samara, Kostanay and from Odesa to Yerevan).
Considerable movement was also seen at the internal market of
regular air carriage, domestic air companies transported 1,1 mln.
passengers, growth rate made 124,8%. Passenger transportation at a
regular basis between 13 Ukrainian cities carried out 8 domestic
companies, major carriers are „Dniproavia”, „Aerosvit” and
„Ukrainian International Airlines”. It is worth mentioning that in
2011 Ukrainian air company “Business Aviation Center” started
regular flights inside Ukraine, air company “South Airlines”
renewed its work.
Commercial flights of domestic and foreign air companies in 2011
were operated by 28 Ukrainian airports and aerodromes, following
the results of the year passenger traffic increased by 21,7% and
reached 12,5 mln. passengers, post and cargo traffic increased by
11% and made 47,2
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thousand tones. Of the them 8 mln. passengers and 37 thousand
tones of cargoes and post were handled by the main airport of the
country - Boryspil (growth by 20% and 16% correspondingly).
In 2011 712,2 thousand hectares of agricultural lands were
handled by small aviation, flying time made 18,4 thousand hours (in
2010 – 780,1 thousand hectares and 19,1 thousand hours).
In 2011 state enterprise to service an air traffic “Ukraeroruh”
provided support to 484,3 thousand flights (compared to 457,4
thousand in the previous year). The number of flights, carried out
by planes and helicopters of Ukrainian air companies, grew by 9,5%,
by foreign air companies – by 4,9%.
Compulsory civil aviation insurance in 2011: 3,0 thousand
insurance contracts concluded, insurance premiums made UAH 184,6
mln., of them UAH 193,7 mln. paid to reinsurers, insurance claims
made UAH 48,3 mln., claims ratio made 26,2%.
Voluntary aircraft insurance in 2011: 0,4 thousand insurance
contracts concluded, insurance premiums made UAH 20,0 mln., of them
UAH 7,4 mln. paid to reinsurers, insurance claims made UAH 0,9
mln., claims ratio made 4,5%.
Voluntary liability insurance of aircraft owners (including
carrier liability) in 2011 demonstrated the following figures: 0,1
thousand insurance contracts concluded, insurance premiums amounted
to UAH 41,0 mln., of them UAH 31,7 mln. paid to reinsurers, no
insurance events took place.
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Marine insurance Ukraine has the largest number of seaports
among all the countries of Black Sea and Azov
basin: there are 19 commercial seaports and a great number of
different terminals. Commercial seaports’ capacities of Ukraine,
transport services of Black Sea basin, which are the 3d largest
after Russian Federation and Romania, make it possible to process
163,7 mln. tones of cargoes per year. Moreover, Ukraine has the
highest transit ratio. However, for now realization of such
advantages is at rather unsatisfactory level.
Wear of fixed assets of shipbuilding industry of Ukraine is
currently 70%. Specific weight of labor input is 3—5 times higher
than within foreign shipbuilders, duration of shipbuilding is 2—2,5
times higher than within foreign enterprises. 86% of output of
shipbuilding industry of Ukraine is being exported.
Passengers carriage by sea transport in 2011 compared with 2010
rose by 6,3%. Enterprises of Sevastopol, which carried out 82,3% of
all passengers transportation by sea, increased passengers carriage
by 6,2%.
Foreign sea transportation of passengers grew by 22,3% in
comparison with 2010. Enterprises of Autonomous Republic of Crimea,
which carry out almost all foreign sea transportation (98,2%),
increased passengers carriage by 25,6% in 2011.
In 2011 passenger carriage by river transport decreased by 2,3%
compared with 2010, foreign carriage grew by 66,7%.
Voluntary water transport insurance in 2011: 12,2 thousand
insurance contracts concluded, insurance premiums made UAH 30,5
mln., of them UAH 14,3 mln. paid to reinsurers, insurance claims
amounted to UAH 11,3 mln., claims ratio was 37%.
Voluntary liability insurance of water transport owners
(including carrier liability) in 2011 showed the following figures:
0,9 thousand insurance contracts concluded, insurance premiums made
UAH 6,1 mln., of them UAH 3,9 mln. paid to reinsurers, insurance
claims amounted to UAH 0,1 mln., claims ratio was 0,5%.
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Nuclear insurance Nuclear insurance according to the Law of
Ukraine “On a civil liability for nuclear harm and
its financial maintenance” as of December, 13, 2001 № 2893-III
is carried out in the form of obligatory insurance of a civil
liability of the operator of nuclear installation for nuclear harm
which can be caused as a result of nuclear incident. The insurer
which carries out nuclear insurance is obliged to obtain a licence
for realization of this kind of insurance according to the
legislation of Ukraine and to be a member of the Nuclear insurance
pool of Ukraine (NIPU).
Over 2011 insurers-members of NIPU received UAH 80,5 mln. of
insurance premiums, including UAH 15,8 mln. from non-residents, of
them UAH 35,8 mln. were paid to reinsurance, insurance claims made
UAH 0,9. The largest part of insurance liability was reinsured in
foreign insurance pools, in particular: American, Belgian, British,
Spanish, Chinese, German, Northern, Russian, Slovak, Slovenian,
Hungarian, French, Croatian, and Czech, Swiss and Japanese.
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Reinsurance The reinsurance market is at the stage of an active
supply and demand. In 2006-2011 the State
commission for financial services markets regulation of Ukraine
has taken a number of measures directed at change of the structure
and volumes of reinsurance. It has led to substantial improvement
of operations on reinsurance abroad and to the expansion of
geography of reinsurers.
In 2011 under the reinsurance contracts the Ukrainian insurers
(cedents, reinsurants) paid UAH 5 906,2 mln. of insurance premiums
(in 2010 – UAH 10 745,2 mln.), of them:
– UAH 1 182,7 mln. to reinsurers - non-residents (in 2010 – UAH
991,3 mln.), – UAH 4 723,5 mln. to reinsurers - residents (in 2010
– UAH 9 753,9 mln.). The overall share of insurance claims,
compensated by reinsurers, made UAH 731,6 mln. (in
2010 – UAH 508,6 mln.), of them compensated: – UAH 164,8 mln. by
reinsurers - non-residents (in 2010 – UAH 289,6 mln.), – UAH mln.
by reinsurers - residents (in 2010 – UAH 219,0 mln.). In the
structure of outward reinsurance in 2011 the largest shares of
insurance premiums were
paid on: property insurance – UAH 1 398,3 mln. (or 23,7%) (in
2010 – UAH 2 959,1 mln. (or 28%)); financial risk insurance – UAH
936,2 mln. (or 15,9%) (in 2010 – UAH 2 233,9 mln. (or 21%)); fire
risk insurance – UAH 776,9 mln. (or 13,2%) (in 2010 – UAH 1 991,7
mln. (or 19%)); motor insurance (CASCO, CMTPL, "Green card") – UAH
663,0 mln. (or 11,2%) (in 2010 – 785,4 mln. (or 7,3%)); cargo and
luggage insurance – UAH 626,8 mln. (or 10,6%) (in 2010 – UAH 1
053,2 mln. or 10%)).
In 2011 the reduction of outward reinsurance with residents
occurred, first of all, due to the decrease of gross insurance
premiums in some insurance companies, which remained at the level
of 2010, that in return influenced the volume of insurance premiums
ceded to reinsurance, and growth of retention of the larger portion
of risks.
In relation to gross insurance premiums the share of outward
reinsurance in 2011 made 26,0% (in 2010 – 46,6%). In 2011 claims
ratio (relation of claims to premiums) on reinsurance operations
with non-residents made 47,9% (in 2010 – 29,2%) and with residents
– 3,5% (in 2010 – 2,2%).
Operations on reinsurance of risks outside of Ukraine keep
stable positions: their relative density remains at the level of
4-5% and is characterized by wide geography of the reinsurance
markets. The largest shares of insurance premiums paid to
reinsurers – non-residents (UAH 1 182,7 mln.) were paid to: Great
Britain – 27% (or UAH 322,3 mln.), Russian Federation – 19% (or UAH
222,7 mln.) and Switzerland – 12% (or UAH 142,5 mln.).
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In 2011 the share of reinsurance brokers in risks placement
within the reinsurers – non-residents made 21,6% (in 2010 - 10%).
Geography of those operations was rather diverse: Russia, USA,
Europe and Lloyd’s market.
Structure of insurance portfolio of the Ukrainian insurers,
1996-2011 (%)
Reinsurance Year Retention
In Ukraine Abroad 1996 82 6 12
1997 85 5 10
1998 70 13 17
1999 61 15 24
2000 56 20 24
2001 57 17 26
2002 53 18 29
2003 50 25 35
2004 40 50 10
2005 53 42 5
2006 59 37 4
2007 65 31 4
2008 63 33 4
2009 57 38 5
2010 52 42 4
2011 74 21 5
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Taxation of insurance companies
In 2011 tax on insurance transactions, paid by the insurers made
UAH 639,4 mln., that is by
UAH 138,6 mln. or by 27,7% more than in 2010. Upon that tax on
gross income from non-life insurance activity in 2011 made 56,2%,
from life
insurance - 1,0% and from transactions with reinsurers –
non-residents – 0,1%. Tax burden in 2011 increased and made 2,82%
(in 2010 – 2,47%).
