Emerging markets of Eastern Europe - most affected by crisis

Emerging insurance markets in Eastern Europe were more affected by the financial crisis than the mature ones, in the West, Ukraine being a good example - this was the conclusion of the first part of the International Financial Forum in Yalta.

"Insurance market in Ukraine has seen a reduction in the volume of underwritings, by more than 30% in the first three months of 2009, the moment when the crisis was at its peak", Alexander Filonyuk, President of the League of Insurance Organizations of Ukraine (LIOU), said.

The most affected was the motor insurance segment, which decreased by more than 45% - this business line having the largest share on the Ukrainian insurance market.

Two worrisome trends can be seen on the market, according to the LIOU representative: reduction of underwritings and non-payment of claims - from the companies' part.

At the same time, the decreased public confidence in insurance (partly because of imbalances in the banking and capital markets), confidence which, anyway, was not high even before, adds up.

The Forum in Yalta, a traditional event for the profile market in Eastern Europe, organized by LIOU, arrived at its ninth edition and brought together leaders of the profile markets in Central and Eastern Europe.