Discount up to -16% on car insurance! Catch this great offer until 15.10.2025. 👉 Buy online quickly and without overpayments.
ATTENTION! At 00:00 the MTIBU database will be updated. Please start concluding the contract after 00:00
The European Union yesterday signed a decision to introduce a visa-free regime with Ukraine. The new regime will not only simplify short-term trips to Europe for Ukrainians, but will also reduce demand for insurance for those traveling abroad. Insurers who sold insurance in visa centers will lose part of their income and will be forced to change sales channels.
Ukrainians will be able to travel to the EU without visas starting June 11, but the changes will be felt not only by tourists, but also by insurers. Currently, having insurance for those traveling abroad (payment of medical expenses), according to the EU Visa Code, is one of the conditions for obtaining a visa. Therefore, the key sales channel for such insurance is visa centers and embassies. The abolition of visas will mean that tourists will not have to comply with the visa code, and therefore some of them will decide to save on health insurance.
The leaders of the travel insurance market do not expect a significant drop in the volume of insurance premiums for this type of service. «We predict a slight decrease in the number of insured people traveling abroad by 10-20%. First of all - due to a decrease in the number of short-term policies,» - says Vasyl Duzhak, Director of the Sales Department of the Insurance Company «PZU Ukraine». Short-term policies are purchased for single trips, while the Insurance Company also sells annual policies with a certain limit of coverage days to cover short but numerous trips to the EU.
Organized tourists will not be able to avoid insurance. The Chairman of the Board of the Insurance Company "European Tourist Insurance" Myroslav Boychyn tells FinClub that, according to the law "On Tourism", tourist insurance (medical and accident) is mandatory and is provided by tourism entities. That is, the cancellation of visas will not affect the volume of insurance for tourists with travel vouchers. "No professional travel company will send its tourist abroad without an insurance policy or at least without the tourist confirming that he has such a policy. Perhaps, at the beginning, someone will risk saving on insurance, which will no longer be needed for visa processing, and will go to Europe without it. It is even possible that the policy will not be checked at (passport. – FinClub) control", – suggests Myroslav Boychyn.
According to Viktoriya Chorna, director of the medical and personal insurance department of the insurance company "Arsenal Insurance", clients with multi-visa who cross the border many times prefer to travel with insurance. "This is due to the fact that many of them have previously encountered the problem of obtaining medical care abroad, the price of which is almost unaffordable for a Ukrainian," the expert believes.
Ukrainians who travel abroad for work or study still need a visa, so a policy is necessary. "Our option of compensating for visa costs in case of refusal, which remains very popular, will be available to them," says Vasyl Duzhak.
In the long term, market participants see an influx of premiums. "We expect growth due to the increase in the number of short trips", – says Oleksandr Shoikhedenko, Chairman of the Supervisory Board of the Insurance Company "VUSO". "Since the visa regime – is still one of the deterrent factors in choosing a travel destination, its abolition will have a positive impact on tourist flows, and accordingly, on the volume of the travel insurance market", – explains Myroslav Boychyn.
To prevent a drop in premiums, travel insurance insurers began to prepare for the upcoming changes in advance. "In February, the company launched a special package offer that includes a "Green Card" policy and an insurance policy for those traveling abroad with the option of technical assistance", – said Vasyl Duzhak. The cost of the package is similar to the cost of two insurances - "Green Card" and travel insurance, but by purchasing the package, the client will receive additional options.
Insurance for a week to the Schengen countries with a limit of $30 thousand without a deductible will cost 150-200 UAH, and insurance with "worldwide" coverage - 250-400 UAH. If a tourist plans an active, risky vacation (diving, skiing, skydiving, rafting), the insurance may cost 300-600 UAH. Insurance to the Schengen countries for a year with a stay of 30 days will cost 500-700 UAH, with "worldwide" coverage - from 750 UAH, for active recreation - from 1000-2000 UAH. Having a deductible of at least 50 euros will reduce the price of the basic policy to 150-200 UAH.
Companies that focused on selling insurance in visa centers and near embassies will have to restructure their sales channels. «The main share of sales was previously made up of two channels - tour operators and visa support centers. After granting Ukrainian citizens the right to visit EU countries without a visa, the shares of these channels in the portfolio will change significantly. Sales through consulates will take a back seat, while retail outlets, and especially online sales, will be able to significantly improve their positions in the portfolio structure», – predicts Viktoriya Chorna.
Insurers will also develop partner sales, for example, with tour operators, as well as through websites selling air and train tickets, and booking accommodation. «For example, you buy a plane ticket or book a hotel, and we offer insurance. Sales points will open at airports, train stations and border crossings, where you can now buy a "Green Card", – says Oleksandr Shoikhedenko.
Source: Financial Club
Author: Rudenko Victoria
Having smart systems in your home will make home insurance cheaper
How not to make a mistake when choosing health insurance?
