Development of Medical Expense Insurance in Ukraine: Challenges and Solutions

The transformation of international mobility of Ukrainians, the increase in the duration of stay of a significant part of citizens outside the country, and the increase in the cost of medical care affect medical expense insurance. As a result, there is a need to review approaches to the formation of insurance coverage and the organization of assistance in the occurrence of an insured event. The article aims to assess the challenges and substantiate the prospects for the development of medical expense insurance in Ukraine in the context of the transformation of international mobility of the population, the growth of the cost of medical services, the increase in the role of the service component of insurance protection, and the digitalization of the insurance market. The research methodology combines classification, comparative, and systemic analyses. The empirical basis of the study is presented by quantitative and qualitative data that characterize the challenges identified in the article. The limitations of the study are associated with the use of secondary data generated using different methods and time periods, as well as individual practical cases, the results of which may not apply to the entire insurance market. The article systematizes the factors that determine the development of medical expense insurance by the nature of their occurrence and the level of their manifestation. The results of the study show that the new consumer profile requires differentiation of insurance programs, while rising medical service costs necessitate coordinating sufficient coverage with the insurance product’s availability and the insurer’s financial stability. At the same time, the effectiveness of insurance protection depends not only on the reimbursement provided for in the contract, but also on the speed of organizing medical care, the continuity of communication, and the coordination of actions among the insurer, the assisting company, and the healthcare institution. The further development of medical expense insurance should be based on a combination of three interrelated components: the flexibility of insurance products, effective service interaction between the insurer, the assisting company, and medical institutions, as well as the use of digital technologies as a tool for integrating all stages of the implementation of insurance protection. The combination of these components will allow for improvements in the quality of insurance services, the financial stability of insurers, and the compliance of insurance products with the needs of travelers. This study provides insurance companies with guidelines for updating insurance products, improving their service models, and determining the priorities for the technological development of their services.