Mass closure of insurance companies expected in Ukraine

"In 2017, a number of insurance companies, including those with foreign capital, may disappear in Ukraine".

This forecast was made on the air of "Obozrevatel. LIVE" by the CEO of the Insurance Company "DIM Insurance" Roman Malenko.

"The insurance market in Ukraine is insufficiently capitalized. A number of insurance companies do not have sufficient assets to fulfill their obligations. Therefore, in 2017, as in 2016, there will be companies that will begin to close. The existing insurance market will be redistributed among those participants who will remain in it ", - he noted.

Malenko emphasized that in 2017 one should not expect an influx of foreign investments into the insurance market of Ukraine.

"The arrival of foreign investors is not expected in 2017. On the contrary, those companies that have foreign capital may exit the Ukrainian insurance market", - he stated.

As the expert explained, the main reasons for the current situation are insufficient market regulation and problems related to competition.

"Since almost everyone competes on the size of the agent's fee, there is no understanding of the product, there is no understanding of the client. There is a size of the agent's fee, accordingly, an increase in the size of the agent's fee leads to the fact that the company has no money left for payments", - Roman Malenko concluded.