Insurance Industry. Ukrainian Green Card Market
The market of insurance started its active development in the world not so long ago. Since that time the services in this area became very popular. Automobile insurance is especially needed because a road is a place for any unexpected situations to occur. Analysts of Pro-Consulting company analyzed the situation on Green Card market.
Some Theory
Insurance market is one of the most promising in Ukraine. It is especially true for the so-called Green Cards which are mandatory for car owners on the territory of 48 states - the members of this system (Austria, Germany, Spain, Greece, etc.). Use of Green Card means that in case of road accident insurance company undertakes to cover damage caused to the victim. If the vehicle leaves the territory of this state, its owner is obliged to purchase the uniform certificate.
From the beginning of this year the volumes of Green card increased in Ukraine for 21%, but the number of contracts decreased for over 4%. The costs for Green Card are different depending on a number of parameters, including car brand, period of effect of the contract and the country intended for the tour. Motor Transport Insurance Bureau of Ukraine presented official data about Green Card market in Ukraine in the first half of the current year. According to these data, amount of rated insurance premiums reached UAH: 496 mln., and amount of costs covered during this period was about EUR: 5 mln. Slight decrease of the results and claims paid is observed to compare with 2015. As of January – July of 2015 there were 2900 claims paid, according to the data of 2016 this number is 2290. Total number of contracts also decreased for slightly more than 4%. More in details these parameters are shown in the following table:
Dynamics of main parameters of Green Card market, 7 months of 2015 – 2016
|
Parameter |
January – July of 2016 |
January – July of 2015 |
Changes, % |
|
The number of insurance contracts, units |
444233 |
424563 |
-4,43 |
|
Amount of rated premiums, mln. UAH |
496,26 |
601,53 |
21,21 |
|
The number of claims paid during the period of report, units |
2291 |
2898 |
26,49 |
|
Amount paid for claims during the period of report, mln. EUR |
4,83 |
6,26 |
29,6 |
Insurance Prices
Starting from the second half of August of this year the price for Green Card policies increased for less than 5%. As of 12.09.2016 the price for Green Card registration for the car, for 15-day period, for entry on the territory of EU member states is about UAH: 730; for the trucks this price is UAH: 1 730, for buses: UAH: 2 750. Slight price increase is observed to compare with the similar period of previous year. Thus, in 2015 the Green card price for the car, for 15-day entry on the territory of EU member states was about UAH: 700, for the trucks it was slightly more than UAH: 1600, for the buses: UAH: 2 630.
As of 12.09.2016 Green Card price for the car, for one month of stay in EU member states is UAH: 1 170, for the trucks it is UAH: 2 290, for buses: UAH: 3 830. Slight change of pricing policy is also observed to compare with similar period of 2015. Thus, in previous year the price of green card for the car, for one month of crossing the border of EU member states was slightly more than UAH: 1100, for the trucks it was UAH: 2 190, for buses: UAH: 3 650.
