Round Table on Compulsory Motor Third Party Liability (MTPL) Insurance and Life Insurance in Ukraine

Українська

Outline

A developed private insurance market is a kind of guarantee for social stability and higher well being of population. In Ukraine private insurance sector is only starting its development, but social significance of its proper functioning is difficult to be overemphasized. This is particularly true for motor third party liability insurance (MTPL), which is widely spread in many countries and will become really compulsory for most drivers in Ukraine starting from the next year. During the Round Table, expert from the German Insurer's Association Thomas Hannes Schaefer shared German experience in MTPL insurance with participants of the meeting and commented on the new law of Ukraine "On Compulsory MTPL Insurance". The representatives of insurance companies, the League of the Insurance Companies, Motor (Transport) Insurance Bureau of Ukraine and the State Commission on the Financial Market Regulation in Ukraine paid particular attention to the necessity to ensure legal liability of those, who don't buy MTPL insurance policies, and to inform market agents on its importance and benefits.

During the second part of the Round Table, Volker Henke, expert from the German Insurer's Association, reported on problems and perspectives of life insurance market in Ukraine. Participants of the meeting agreed that low average income in the country, population's mistrust to financial institutions, insufficient capitalization of insurers impede spreading of life insurance. The discussion also concerned pension reform passing. The creation of non-state pension funds may intensify competition on the financial market of long resources, but life insurers are confident that their product will find its consumers due to specific benefits that insured people receive.