Formation of Market Relations in Motor Insurance – Historical Aspect

Motor insurance is an important segment of the modern insurance market, providing protection for property and the personal interests of road users and reducing the consequences of road accidents. The article aims to analyze the stages of formation and development of the basic provisions of motor insurance and its implementation in Ukraine, taking into account historical, economic, and behavioral factors. The research methodology is based on the application of historical-genetic, historical-comparative, systemic, economic-analytical, and actuarial-statistical methods. The article describes the evolution of motor insurance, outlines its development in Europe, the USA, and Ukraine, and assesses the impact of digitalization, telematics, and military risks on modern mechanisms for tariff formation and risk assessment. The results of the study show that the key principles of insurance – solidarity risk sharing, the formation of common funds, the compensatory nature of payments, and social orientation – were formed long before the advent of motor transport and were later adapted to the new conditions of mobility and technical progress. Nowadays, the development of motor insurance has been accompanied by the industry's professionalization, the strengthening of regulatory frameworks, and the expansion of the range of insurance products. In Ukraine, after 2022, military, digital, and structural factors did not change the basic actuarial principles; however, only the method of their implementation has changed: the transformation of motor insurance extends actuarial principles to the conditions of stochastic non-stationarity and multidimensional risk structure. There is a transition from static tariff models to behavioral auto insurance, when the cost of the policy depends on the individual behavior of the driver (pay-as-you-drive). InsurTech solutions are becoming increasingly widespread: online registration of mandatory civil liability insurance and CASCO, integration of motor insurance into digital platforms, and automation of loss settlement. In terms of institutional and regulatory transformation of the market, the implementation of European directives is taking place, requirements for financial stability of insurers are being strengthened, the number of companies is being reduced, players are being consolidated, and the role of the National Bank of Ukraine as a key regulator is growing. Thus, the motor insurance market in Ukraine is developing in line with global trends in digitalization and tariff personalization, while also being characterized by the unique impact of war risks.