The outlook for Ukraine's insurance market remains unsettled. While the market does offer substantial growth potential in light of the limited rates of coverage, particularly in the underdeveloped life sector, significant structural challenges will continue to deter investors and undermine this unrealised growth potential. Downside risks are substantial as the difficulty of maintaining a fragile economic recovery while the conflict in the east of the country escalates could derail currently positive expectations for GDP growth and average household income rates, eroding any possible increase in demand for life and non-life covers.
Key Updates And Forecasts
Some insurers are turning to new distribution partners in order to achieve growth. In August 2017 Kniazha Life VIG announced it was partnering with Free Life (Dnipro), a consultation company in the life insurance sector with an extensive client base in Ukraine.