In interview with forinsurer.com, the expert also named the most significant factors which development of life insurance in Ukraine will depend on. In his opinion, it is unlikely people will think about long-term savings, when they can barely meet the basic needs for food and medical treatment. According to his estimates, in Ukraine this cluster of households takes up to approximately 28-45%.
"But there are at least 55% of the population; and to promote the idea of life insurance among those who are still above the threshold of "insurance poverty", the main factor is information activity of all market participants", says Miroslav Kisyk. It is especially important when the government has to review and reduce its social obligations, even if the methods are not obvious. We should openly tell potential consumers: if you do not take care of future yourself, no one can do it for you. Insurance is a suitable tool, see what it can give. Insurance companies, intermediaries, and the state should show Ukrainians how life insurance works, and what real advantages such instrument may provide. However, we should realize that the process will take years, perhaps, decades".
According to Mr. Kisyk, the client of the life insurance company is everywhere the same; people who have realized responsibility for their financial well-being and the future of their family members. Most often these are people of 30+, who have families and children, many of whom are called the "sandwich" generation: that is, mature, independent people who need to take care of both: the younger generation, growing-up children, and aging parents. The maximum financial responsibility in their family lies on their shoulders.
When asked how the company manages to remain profitable, Miroslav Kisyk replies that, firstly, the larger the portfolio, the greater is the profit. The second reason is the qualitative planning of their activities, that they usually call "implementation discipline”. "We invest only in targeted projects, monitor the effectiveness of their implementation, and constantly minimize unproductive spending. And, of course, we control the money; the life insurance trade obliges it", he says.
As for new services for customers and partners, Miroslav Kisyk noted the introduction of a large number of them, including independent financial consultants. In addition, a lot of activities have been worked out for development of joint service work with partners. As for digitalization of insurance business and electronic policy in the life sector, the expert believes that it is too early for Ukraine to talk about this.
"The practice of consuming the service has not yet been formed in the society, there is no experience of using it, in 99% of cases the client needs a live consultation, and preferably not one, but a series of meetings with a representative of a company", he says. "But we are successfully introducing digital solutions where they already bring real benefits, for example, the system of work of partners and agents with electronic applications. We have adopted this experience from other companies, Metlife members, and successfully implement this practice. It is helpful as it accelerates the policy issuance for a client, simplifies a consultant's work, and saves the insurer's costs. This is a "win-win decision" for everyone, and we are increasing the number of such contracts, motivating sellers to follow the new trends in digital workflow. "
Miroslav Kisyk is expecting growth in the life insurance market of Ukraine in the next 5 years, linking it, first of all, with positive trends that are gradually forming in the country's economy. They are as follows: growth in wages, development of new niches and industries in the Ukrainian business, a gradual climate improvement and purification of a financial sector, including the banking. "The possible change in law regarding the payment of Unified Social Tax is a huge pro and the starting point of corporate life insurance growth", he added. "Our joint work with individual insurance partners to overcome financial illiteracy of population is a priceless work that is also gradually beginning to bring its results."