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УДК 368.02:336.76

DOI: https://doi.org/10.36887/2415-8453-2026-2-6

Hanzhurenko Iryna,
Doctor of Economics, Professor of the Department of Management, Economics and Tourism
Lviv Institute "IAPM", Lviv, Ukraine,
https://orcid.org/0000-0003-4151-123X
Musiiets Tetiana,
PhD in Economics, Professor, Professor of the Department of International Finance,
Kyiv National Economic University named after Vadym Hetman,
https://orcid.org/0000-0003-4291-5543
Petrenko Olha,
PhD in Economics, Associate Professor of the Department of Economic Theory and Economics of Enterprises,
Odessa State Agrarian University, Odessa, Ukraine,
https://orcid.org/0000-0001-9722-3785

JEL classification: G22, G10, G32

This article examines the economic efficiency of insurance in Ukraine amid financial market transformation driven by geopolitical instability, integration with European regulatory standards, and industry digitization. It is argued that the traditional system of financial ratios—combined loss ratio, return on equity, claims ratio, liquidity, and operating expense ratio – must be supplemented with digital maturity metrics: the level of underwriting automation, the speed of claims processing, indicators of customer acquisition through digital channels, and the effectiveness of data utilization in risk management. The impact of implementing Solvency II principles on the operations of Ukrainian insurance companies has been analyzed. Tighter requirements for capital, risk management systems, and reporting reduce short-term profitability due to the need for significant investments in compliance infrastructure. At the same time, such changes increase the sector’s transparency and long-term financial stability and stimulate market consolidation, as smaller companies lose the ability to meet new regulatory requirements. The impact of digital transformation on the operational efficiency of insurance has been examined. The automation of underwriting and the implementation of artificial intelligence for claims assessment enable cost reductions and faster customer service, thereby positively impacting profitability. Digital sales channels and mobile apps expand geographic reach and increase customer loyalty. Blockchain technologies reduce fraud. However, digitalization requires significant initial investment and is accompanied by cybersecurity risks, data quality issues, and regulatory uncertainty, which temporarily reduce profitability. Methodological approaches to assessing insurance effectiveness are examined: traditional ratio analysis; the Data Envelopment Analysis method for comparing insurance companies across multiple parameters; the balanced scorecard; and a dynamic approach that accounts for an insurer’s adaptability to market changes. Key challenges for Ukrainian insurance companies have been identified: geopolitical risks, low insurance culture among the population, macroeconomic volatility, regulatory pressure, a shortage of personnel, and cyber risks. The strategic directions for improving profitability and financial stability are to develop InsurTech partnerships, expand the product line, integrate into Europe, and adopt ecosystem-based business models.

Keywords: insurance efficiency, digitalization, profitability, market consolidation, financial stability, insurance companies, return on investment, risk management.

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The article was received 31.05.2026

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Hanzhurenko I. , Musiiets T. , Petrenko O. 31.05.2026. Assessment of the economic efficiency of insurance activities in the context of financial market transformation. Ukrainian Journal of Applied Economics and Technology. 2026. №2. 38-42 pp. https://doi.org/10.36887/2415-8453-2026-2-6

Quote article, MLA style

Hanzhurenko I. , Musiiets T. , Petrenko O. Assessment of the economic efficiency of insurance activities in the context of financial market transformation. Ukrainian Journal of Applied Economics and Technology. 31.05.2026. https://doi.org/10.36887/2415-8453-2026-2-6