After joining the EU, the Ukrainian insurance industry could undergo drastic changes
25 June 13:56
The insurance market’s share of Ukraine’s economy could grow from the current 1% to 5–7% of gross domestic product over the next five years. This was stated by Andriy Pyshnyy, head of the National Bank of Ukraine, during a roundtable discussion, according to "Komersant Ukrainian", citing Interfax-Ukraine.
According to him, the Ukrainian insurance sector has already undergone a major overhaul, is developing rapidly, and is becoming increasingly attractive to investors. European integration, an influx of foreign capital, and the opening of the Ukrainian market to EU companies could provide an additional boost to the market.
Pyshnyy spoke about the industry’s prospects during a roundtable on the sidelines of the URC 2026 Conference on Ukraine’s Recovery in Gdańsk, Poland.
The insurance market could grow to 5–7% of GDP
Currently, Ukraine’s insurance market accounts for approximately 1% of GDP. According to the NBU governor’s assessment, this figure could rise to 5–7% within five years.
“Today, there is every reason to believe this will happen, but again, we need capital, we need investors, we need transparency, we need adaptation, and we need understanding,” the NBU governor emphasized.
Pyshnyy called on European insurance regulators and companies to take a more serious look at the potential of the Ukrainian sector.
“I think that each of you, having worked through a full-scale war, will view this market in a completely different light. You will view competition, solidarity, capacity, and capability in a completely different light,” Pyshnyy noted.
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Why Insurance Is Important for Ukraine’s Reconstruction
A developed insurance market should become one of the key tools for attracting investment in the country’s recovery.
In the context of war, foreign and Ukrainian companies face risks of property damage, production shutdowns, cargo losses, and infrastructure destruction. Without affordable insurance, many investment projects remain too risky.
Insurance against war risks is one of the central financial priorities of URC 2026.
The Ukrainian market is already attracting investors
Regarding access to the Ukrainian market for European and other foreign companies, the head of the National Bank emphasized that, prior to Ukraine’s accession to the EU, such access is possible only through the acquisition of existing companies or the establishment of a new legal entity, whereas the ability to operate through representative offices will only become available after Ukraine joins the EU.
“Once we join the EU, we will certainly have the obligation to open the market to European players. But let’s take this step one at a time,” said the NBU governor.
The regulator is already seeing deals that indicate growing investor interest in Ukrainian insurance companies.
Pyshnyy noted that the depth of the insurance market’s transformation is no different from the transformation that took place in the banking sector.
“But it’s unfolding with far less drama. This is because there has been constant communication, structuring, and a shared understanding of common goals. And achieving results has begun to motivate the participants themselves. Everyone felt that we were succeeding together. And today we see deals taking place in the market that indicate this market is increasingly and more frequently attracting investors’ interest,” said the head of the NBU.
According to him, the depth of the transformation is already evident today: the market is attractive, reputable, highly liquid, and profitable.
How foreign companies can enter Ukraine now
Until Ukraine becomes a full member of the European Union, a foreign insurance company cannot simply open a representative office and begin operating in the Ukrainian market.
Currently, there are two main ways to enter the market:
- acquire an existing Ukrainian insurance company;
- establish a separate legal entity in Ukraine and obtain the necessary permits.
Once Ukraine joins the EU, European insurers will be able to operate through their representative offices in accordance with the rules of the single European market.
Pyshnyy confirmed that upon becoming a member, Ukraine will be obligated to open its insurance market to European companies.
To what extent does the Ukrainian insurance sector comply with EU rules?
According to the head of the National Bank, the Ukrainian banking sector is already 78% compliant with the European regulatory framework.
For the insurance market, this figure is currently lower—about 55%.
This means that Ukraine still needs to continue adapting its legislation, supervisory rules, capital requirements, risk management, and consumer protection.
Further alignment with EU standards should make the market more transparent and reliable for international investors.
“But imagine what will happen if there is even deeper European integration. That, in fact, is what we’ll be working on, and it will certainly have an impact in virtually every area,” the NBU governor concluded, predicting new agreements this year and next regarding foreign companies entering the Ukrainian market.
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