Risk Radar (May2025)
2024 marked a turning point for Ukraine’s insurance market. After years of anticipation, the new Law of Ukraine “On Insurance” finally came into force, setting a new regulatory framework and testing the adaptability of market players. Despite this tighter oversight, continued wartime uncertainty, and rising inflation, the sector proved resilient. Gross insurance premiums surpassed €1,2 billion (the highest figure in the last five years in hryvnia equivalent). Nevertheless, taking inflation into account, this is still €317 million below the pre-war level.
Alongside regulatory reform, 2024 marked a clear shift towards greater market concentration. The total number of insurers fell by 36 companies to 66, with the five largest non-life insurers increasing their market share from 39% to 42%. The top 10 now control 71% of the total premium volume, a trend that looks set to continue.
In 2025, insurers are navigating a new reality shaped by economic instability, the rapid development of
information technology, and the need to align with an evolving regulatory environment.
War risks insurance
War risk insurance has been a critical yet underdeveloped segment of Ukraine’s insurance market since the onset of Russian aggression in 2014. Despite ongoing hostilities, the market offered only limited domestic solutions, while international reinsurers remained largely excluded.
By late 2024, the landscape began to shift. The Ukrainian Parliament registered a draft law to establish a national war risk insurance system, aiming to unify existing efforts and facilitate the future engagement of international reinsurers. Furthermore, the European Bank for Reconstruction and Development and Aon launched the €110 million Ukraine Recovery Guarantee Facility, providing reinsurance support to both international reinsurers and Ukrainian insurance companies. Soon after, McGill and Partners, in collaboration with ARX, introduced the Ukraine War Risk Insurance Facility offering up to $50 million in coverage per risk.
“ Given recent initiatives, 2025 is expected to bring at least some improvements to the war risks insurance market locally. The establishment of a consolidated system shall definitely help.“ OLGA VOROZHBYT, PARTNER, SAYENKO KHARENKO
Adaptation to new regulations
Although the main wave of reforms took place in 2024, 2025 marks a phase of adaptation and the trend towards tighter regulatory oversight is expected to continue. An entirely new legislation has established stricter requirements for transparency, solvency and capital assessment of insurers. 2025 will continue to bring new rules governing corporate management, risk assessment and motor vehicle insurance.
Insurers are expected to adapt to this new regulatory environment, develop internal models for solvency evaluation, and reassess their growth strategies. Some market players have already exited voluntarily or were removed by the regulator. Those unable to comply with the new standards will likely follow suit – either leaving the market or consolidating with other players.
“Alongside the continued war, new legislation poses another major challenge for insurers. Stricter regulations are likely to accelerate market concentration reshaping the industry landscape.“ OLGA VOROZHBYT, PARTNER, SAYENKO KHARENKO
Artificial intelligence
In 2025, the insurance industry is undergoing a significant transformation driven by artificial intelligence (AI) and other digital innovations. According to McKinsey, advanced AI technologies could reach $1.1 trillion in annual value for the global insurance industry.
A Roots survey of insurance executives revealed that nearly 90% view AI as a key strategic priority by 2025. Of those, 82% consider it a corporate initiative aimed at boosting both financial performance and operational efficiency. Ukraine’s insurance market is actively joining this shift.
By leveraging big data, insurers can uncover valuable patterns and emerging trends
within massive datasets. This enables more accurate risk evaluation, improves pricing strategies and enhances customer interaction.
“Today, AI is the leading trend in the services market. Nevertheless, its implementation must include clear protocols for mitigating bias and preventing data leaks.“ OLGA VOROZHBYT, PARTNER, SAYENKO KHARENKO
