THE IMPACT OF WAR RISKS ON THE FUNCTIONING OF THE INSURANCE MARKET

Abstract

Introduction. The article examines the impact of war risks on the functioning of Ukraine’s insurance market under martial law. The relevance of the topic is driven by significant transformations in the financial sector caused by the full-scale armed aggression, which has increased uncertainty and altered the operating conditions of insurance companies.

Objective. The aim of the study is to analyze the consequences of war risks for Ukraine’s insurance market, identify the key trends in its development, and substantiate directions for insurance companies’ adaptation to crisis conditions.

Materials and Methods. The study is based on statistical data from the Ukrainian insurance market for 2021–2025, analytical reports of regulatory authorities, and materials from insurance associations. The research employs methods of system analysis, comparison, generalization, as well as SWOT analysis to systematize internal and external factors influencing Ukraine’s insurance market under war conditions.

Results. The study found that war risks have led to a significant reduction in the number of insurance companies, a decline in insurance premiums, and an increase in insurance claims. Access to international reinsurance has become more limited, while the role of the state in market regulation has strengthened. At the same time, insurance companies are adapting through the digitalization of processes, changes in product policy, and the development of new risk management mechanisms. The main market trends are characterized by a sharp decline in 2022 followed by a gradual recovery in subsequent years. A transformation in the structure of demand for insurance services and the growing importance of war-risk and property insurance have also been substantiated.

Prospects. Further research should focus on developing public–private partnership models in war-risk insurance, improving reinsurance mechanisms, and introducing innovative products, including parametric insurance and cyber risk coverage tools in the context of Ukraine’s European integration.