Insurance market of ukraine, financial stability of insurance companies: analysis of trends and development prospects

Анотація

The article provides a comprehensive analysis of trends, dynamics, and prospects for the development of Ukraine’s insurance sector, as well as factors that ensure the financial stability of its main entities under the crisis conditions of martial law. The relevance of the study stems from the deep transformation processes in the market during 2015–2025, which unfolded under the pressure of the COVID-19 pandemic and military shocks. Based on empirical data, a paradoxical trend has emerged: against the backdrop of an unprecedented reduction in the number of insurance companies (from 361 in 2015 to 60 in 2025), a systemic strengthening of the sector’s financial base and a rapid increase in capital concentration are evident. The key driver in cleaning the market of financially insolvent players was the 2020 “split” reform and the strict regulatory requirements of the National Bank of Ukraine regarding capitalization, compliance, quality of reserve coverage, and the implementation of IFRS 17 and Solvency II standards. A detailed analysis of key sustainability indicators over ten years revealed stable growth in insurers’ total assets (from UAH 40.5 to UAH 89.4 billion) and insurance reserves (from UAH 15.8 to UAH 54.8 billion). Despite temporary fluctuations in gross premiums in 2020 and 2022 due to exogenous shocks, a confident market recovery has been observed since 2023, with a parallel increase in gross payments to 43.5%. The scientific novelty and practical significance of the work lie in the structuring of the oligopolistic architectonics of the modern insurance market, where the undisputed leaders in terms of asset volumes (ARX, SG “TAS”, UNIQA, INGO, PZU Ukraine) have been identified. A high level of integration of European capital has been confirmed. The profitability indicators (ROA) and combined expense ratio were analyzed, demonstrating the system’s transition from loss-making in 2015 to high operational efficiency and cost control in 2025. Methodological guidelines for developing preventive risk management measures using modern information and communication technologies were proposed. Keywords: financial stability, insurance company, analysis, trend, dynamics, indicator.

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