LIOU PREDICTS SLIGHT RISE IN COLLECTION OF NET PREMIUMS BY NON-LIFE INSURERS IN 2018

The volume of net insurance premiums collected by Ukrainian risk insurance companies in 2018 will amount to UAH 27.6 billion, which is 7.8% more than in 2017 (UAH 25.6 billion), such a realistic scenario forecast was made by specialists of the League of Insurance Organizations of Ukraine (LIOU), based on the developed methodology of connection of payments with macroeconomic indicators.

According to the league’s website, the data were calculated taking into account the macroeconomic forecasts of the Cabinet of Ministers of Ukraine, the National Bank of Ukraine, the International Monetary Fund, the World Bank, the international rating agency Standard & Poor’s on the growth of GDP, inflation and the average annual hryvnia exchange rate for 2018.

The experts noted that the dynamics of receipts of insurance premiums by types of insurance other than life insurance during 2012-2017 was unsustainable. The largest growth of insurance premiums from non-life insurance was in 2013 (32.9%), while in 2014 there was a decrease of 6%. At the same time, over the past three years there has been a noticeable trend towards an increase in growth rates (in 2015 by 12%, in 2016 by 17.7%, in 2017 by 25%), i.e. an uneven growth is observed.

The comparison of the growth rates of gross insurance premiums and nominal GDP and the analysis of lead rates show the outstripping growth rates of insurance premiums in the national currency compared to the GDP growth rates in 2013 and 2014, and a backlog of the growth rates of insurance premiums in the national currency in comparison with GDP growth rates in 2015-2017.