Accessibility of MTPL Insurance in Ukraine in the Context of Adaptation to EU Standards

Abstract

The article is devoted to analyzing the accessibility of compulsory motor third-party liability insurance (MTPL) in Ukraine in the context of adapting regulatory requirements to the standards of the European Union, which is a relevant task within the framework of European integration reforms. MTPL plays a key role in ensuring social protection and road safety, based on insurance principles, particularly accessibility, which implies an economically justified cost of policies for all vehicle owners. However, recent changes in regulatory legislation aimed at harmonizing with European norms have led to a significant increase in insurance service prices, causing public outcry and discussions about their appropriateness. This price growth potentially limits the accessibility of insurance for a large part of the population, contradicting the social goals and the balance between quality and affordability enshrined in European standards. The study emphasizes the insufficient attention paid to the impact of regulatory changes on MTPL accessibility, which complicates the assessment of their effect on the economic behavior of vehicle owners and the effectiveness of the insurance system. The analysis is based on a review of academic works by Ukrainian and European researchers, which highlight the principles and features of motor liability insurance. Special attention is given to the role of the deductible as a tool for reducing policy costs, which remains an effective mechanism for differentiating insurance products in many EU countries. The dynamics of the MTPL market in Ukraine demonstrate complex trends, including the impact of wartime conditions and rising prices, which have affected premium volumes and the number of concluded contracts. To address the outlined challenges, the article proposes new approaches to assessing the accessibility of insurance services, in particular by developing indicators of insurance burden relative to the average and minimum monthly wages, as well as an insurance affordability index that accounts for the average age of vehicles. These indicators allow for identifying the financial strain on the population and for considering socio-economic factors such as the aging vehicle fleet. The analysis underscores that although the reforms aim to increase compensation limits, they may distort the social nature of insurance, shifting the focus away from the needs of policyholders. The conclusions of the study emphasize the need to improve pricing policy toward reducing the cost of insurance services while considering the intensity of the insurance burden. Future research should focus on the practical application of the proposed indicators based on the motor insurance markets of Ukraine and the EU.