Ukraine sold around 81,000 new passenger cars in 2025, the strongest result since 2014 and 17% above the previous year. Yet the used-car market is far larger.
In February 2026 alone, more than 56,600 used-car transactions were registered. Used vehicles change hands several times more often, and their owners account for much of the demand for compulsory motor third-party liability insurance, or MTPL.
For an insurer, this creates a steady flow of new customers through compulsory motor insurance. The challenge is what happens after the first policy is sold and whether the relationship develops beyond it.
MTPL has changed
Since January 1, 2025, direct claims settlement has no longer been voluntary in Ukraine. A person injured in a road accident now contacts their own insurer, the company they selected when buying the policy.
The effect is already visible. During the first nine months of 2025, the number of claims settled through the direct settlement system increased by 107.8%, while the value of payments rose by 109.2%. These claims represented more than 21% of all property-damage applications.
The frequency of insured events is relatively low, so customers will not immediately form an opinion about how their insurer performs. But over time, people understand who is who in the market. This creates a strategic effect and inevitably raises expectations for every insurer.
The customer’s first meaningful interaction with an insurer now often happens when something has already gone wrong. If the experience is good, the customer has a reason to stay. If it isn’t, they leave and are unlikely to return. Marketing doesn’t repair a poor claims experience.
ARX structures its MTPL proposition around this logic. A policy takes around five to seven minutes to arrange online through integration with the Diia app and is then sent directly by email. Every contract also includes unlimited Auto Concierge assistance, covering towing, battery charging, fuel delivery and mobile tyre service.
Customers contact ARX when they need help on the road and receive assistance without having to determine which service provider to call themselves. People get used to good service quickly, and that experience affects how they choose insurance products later.
For drivers who consider the standard liability limit insufficient, ARX also offers additional MTPL cover with limits of up to UAH 4mn. The product is especially relevant for owners of expensive cars and people who drive frequently in dense urban traffic, where the standard MTPL limit might not cover the full cost of a serious accident.
From MTPL to CASCO
A customer who has had a good experience with ARX under an MTPL policy has less reason to look for another insurer when considering CASCO. We see this in our own data. Cross-sales between MTPL and CASCO continue to increase, driven by service quality rather than promotional campaigns.
From a profitability perspective, this matters. A customer with two products in one company costs less to acquire and tends to stay longer.
“These customers form the company’s most valuable long-term base. Insurance profit isn’t built on one-off sales, but on a portfolio of loyal customers whose risks the insurer understands well”, Viacheslav Havrylenko said.
ARX offers several CASCO products for different customer needs. “Ye CASCO” allows customers to select specific risks, including accident damage, theft or total loss, or combine both areas in one policy. MiniCASCO is designed for vehicles in the mid-price segment.
“CASCO Classic” covers traditional risks including road accidents, natural events and unlawful actions by third parties. The number of insured events isn’t limited, while customers select their preferred deductible. “CASCO All Inclusive” is designed for new vehicles, including premium cars.
ARX also offers “Iron Dome”, a product developed in response to wartime conditions in Ukraine. It covers damage caused by missiles, drones and debris and is available for periods of three, six, nine or 12 months. Vehicle inspection is completed through the MyARX app.
This isn’t a promotional product built around a temporary campaign. It addresses demand from customers living with a direct and persistent wartime risk.
Claims payments without embellishment
In April 2026, ARX paid more than UAH 7.6mn for a single CASCO claim. It wasn’t a typical road accident, but unusual losses are often where the value of insurance becomes clearest. Without the policy, the vehicle owner would have received nothing from the insurer.
During Q1 2026, ARX and ARX Life paid customers UAH 643.5mn, up 28% year over year. On working days, average daily payments exceeded UAH 10.2mn.
Total premiums for the quarter exceeded UAH 1.55bn, 11% above Q1 2025. CASCO generated UAH 667.1mn in premiums, while MTPL accounted for UAH 187.3mn.
Profitability without illusions
The number of insurers operating in Ukraine’s CASCO market fell to 57 in 2025 from 65. Whether the number will continue to decline, I honestly don’t know. Companies relying almost entirely on aggressive pricing, though, inevitably face rising loss ratios and eventually have to reconsider their business models.
According to the National Bank of Ukraine, the market CASCO loss ratio stands at 48.5%. The real figure is higher, while pressure on insurers’ capital continues to increase.
ARX increased its market share by selling more policies and serving more customers, not by cutting rates. In 2025, the company collected UAH 2.81bn in CASCO premiums and also increased its customer base.
“At year-end, we remained the CASCO market leader for the 17th consecutive year. But I will say it again: first place isn’t an objective in itself. Our objectives are service quality, satisfied customers and profitability.”
Sustainable insurance profitability comes from pricing risk correctly, meeting obligations and retaining customers as a result. MTPL is the entry point in this model, while CASCO deepens the customer relationship.
An insurer that performs well at both stages builds a more predictable portfolio and gains a clearer basis for managing risk, retention and long-term profitability.
