“The influence of crises on the market situation in the country is very clearly visible. The political crisis in the country, not even the economic one, gives such a message to the people: “Oh, the company is still keeping up, it is necessary to take the money back”. And then there is a surge in termination of contracts and an increase in payments on redemption amounts. Such an upsurge was recorded in our market in 2014,” said Nina Guzei, the Life Insurance Platform association executive. According to her, in the last three years a less number of life insurance contracts have been terminated than before.
The speaker believes that the Ukrainian life insurance market should become public by 2025. In addition, companies must increase their charter capital. “The shareholders must show their readiness to develop this business. They need to realize that life insurance cannot develop without investment. First you need to invest money to get future profit,” explained Nina Guzei.
She said that insurers advocate the issuance of long-term government bonds. “We have to earn money for both customers and company owners. Why, for example, a life insurance company could not be the owner of a land plot in a share of some agricultural holding; or invest in some bonds or shares of the autobahn that make a sustainable profit; or other promising projects,” the source said.
Ms. Guzei said that the first few years, life insurance companies will need state support.
“First of all, financial literacy improvement: we want to change people’s attitude on savings with the government help. By the beginning of the next stage we expect the market to be clean, transparent, with equal rules of the game; the effectively working laws will be adopted. Our further mission is to simply develop the market and be a worthy source of "long" money that the banking system, business and economy need so much,” said the public association executive.
Photos are from open sources.