NBU: Life insurance is a potential source of long-term funds for Ukraine’s economy.

In Ukraine, there is a significant potential for the development of life insurance, which can become a source of long-term funds for the economy, said the deputy head of the NBU, Kateryna Rozhkova. The world’s ratio of life insurance premiums to GDP is 2.7%. For developing countries, this indicator is 1.6%, while in Ukraine, it remains at 0.08%.

“Life insurance premiums on the global world market in 2023 accounted for about 41% of the annual total insurance premiums, in Ukraine for the same period is 11.1%,” the official said.

NBU, together with market participants, is working on developing a future model for the life insurance market. In Ukraine, this market is represented by only 12 companies working on various accumulative and risk products.

Cumulative insurance is currently in low demand, and changes in this segment are possible if the economy stabilizes, the capital market is developed, and citizens’ well-being improves.