Analysis of contract conclusion statistics shows a growing demand for this service. While at the end of 2019 the share of electronic MTPL policies was about 15% of all issued contracts, by the first half of 2020 this figure had reached 30%. Moreover, over the entire period of electronic MTPL validity (since 2018), more than 3.8 million such policies have been issued.
What makes online insurance so popular?
The insurance sector is actively moving into the digital realm, especially amid the pandemic. The state also supports the course towards abandoning paper media, stimulating market development. In particular, a discount of up to 10% on an electronic policy is provided at the legislative level. And a lower price is the most effective incentive for drivers. In addition, car owners have access to functions for electronic termination and renewal of the contract. Now there is no need to go to the insurance company's office or communicate with an agent in person — you can resolve the insurance issue safely, in just a couple of clicks on your smartphone.
This simplified interaction format benefits all participants: insurers reduce costs for maintaining offices and staff, and clients save time and money when purchasing a policy.
What other innovations does the insurance market offer?
The emergence of a new product always entails the development of related services, and online insurance is no exception. Drivers have access to a whole range of digital tools that streamline the process — from choosing a policy to storing and using it. For example, the aggregator of insurance and financial products hotline.finance allows you to quickly select the optimal program in terms of price and quality. After payment, the policy is sent to the client's email in PDF format. Also, in recent years, it has become possible to file an accident remotely via the European accident report if the damage does not exceed 50,000 UAH. In this case, there is no need to call the police — participants independently enter data about the incident and damage into the database. But the functionality does not end there. On the website of the Motor Transport Insurance Bureau of Ukraine, you can check the status of MTPL validity by the car's license plate or policy number. As for storage, when using the mobile application "Diia", the electronic contract automatically appears in the personal account. And if you use the hotline.finance application, the purchased policy also gets there.
Key advantages of electronic contracts
The transformation of MTPL does not go unnoticed by Ukrainian drivers. Among the obvious advantages for car owners are:
- Informed choice based on options and insurer rating. The agent's skills in "selling" the program are no longer a decisive factor. Users approach the choice of an insurance company more thoughtfully, understanding all the risks.
- Transaction security. It is impossible to forge an electronic policy. Moreover, there is always the opportunity to check it in the unified open database of the MTSBU.
- Reliable storage. An electronic contract cannot be lost — it is always available when needed.
- Savings. E-MTPL is always cheaper than its paper counterpart. And when using marketplaces for selection, the benefit can reach 40%.
- Convenience of registration. You can buy insurance in any comfortable place — at work, at home, or even while abroad.
