STATE AND PROBLEMS OF DEVELOPMENT OF INSURANCE MARKET OF UKRAINE

Authors

DOI:

https://doi.org/10.15802/stp2016/67285

Keywords:

insurance, insurer, the insurance market, insurance services, insurance payments, insurance portfolio, insurance cover

Abstract

Purpose. The insurance market of Ukraine is still interesting for foreign investors. However, there is a range of negative factors. They are: 1) the old regulatory framework, public access and transparency of the insurance market for population; 2) low profitability of certain types of insurance; 3) low competitiveness of the insurance companies in comparison with commercial banks in attraction drive of free funds of legal entities and individuals; 4) insufficient state regulation and control does not allow the insurance market to develop effectively. Therefore, the purpose of the article is to analyze and identify the causes that hinder the development of insurance business in Ukraine, as well as to determine the directions of insurance market development. Methodology. To achieve this purpose the article determines the total number of insurance companies, composes the gross payment rating of the largest of them, presents the dynamics of net insurance premiums for basic insurance. This analysis allows you to identify problematic issues and activities of the insurance market. Findings. The analysis of the article revealed a number of factors that prevent successful development of insurance in Ukraine. The authors suggest priority areas for improving the situation in the insurance market. It was found that the main tasks of the development of insurance are: 1) legal framework reform; 2) improving competitiveness, investment attractiveness of the insurance companies; 3) development of modern infrastructure of the insurance market; 4) expanding the range of services and their compliance with international standards; 5) personnel development; 6) improvement of insurance activity licensing; 7) building of culture and public trust. At the same time the increase in the population solvency, economic and political stability in the country will contribute to the stabilization and intensive development of the insurance market. Originality. The article firstly developed a scientific approach to the determination of the system of factors, which the modern insurance market should correspond to. Рractical value. The solution of the presented problems with the help of the measures proposed by the authors will help the insurance market to develop successfully. And this, in its turn, will contribute to the stabilization of the national economy, because the insurance market is its integral segment.

Author Biographies

L. V. Martseniuk, Dnipropetrovsk National University of Railway Transport named after Academician V. Lazaryan

Dep. «Economics and Management», Lazaryan St., 2, Dnipropetrovsk, Ukraine, 49010, тел. +38 (093) 934 18 03

O. V. Chornovil, Dnipropetrovsk National University of Railway Transport named after Academician V. Lazaryan

Dep. «Accounting, Audit and Intellectual Property», Lazaryan St., 2, Dnipropetrovsk, Ukraine, 49010, тел. +38 (050) 363 19 17

K. V. Belaya, Dnipropetrovsk National University of Railway Transport named after Academician V. Lazaryan

Dep. «Finance and Economic Security», Lazaryan st., 2, Dnipropetrovsk, Ukraine, 49010, тел. +38 (063) 85 858 72

A. O. Udovychenko, Dnipropetrovsk National University of Railway Transport named after Academician V. Lazaryan

Dep. «Finance and Economic Security», Lazaryan St., 2, Dnipropetrovsk, Ukraine, 49010, тел. +38 (099) 171 18 00

Anoop Kumar Sharma, Shri Mata Vaishno Devi University

Dep. «Architecture and Landscape Design», Katra, Jammu and Kashmir, India, 182320, tel. +91(901) 890 37 78

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Published

2016-04-25

How to Cite

Martseniuk, L. V., Chornovil, O. V., Belaya, K. V., Udovychenko, A. O., & Sharma, A. K. (2016). STATE AND PROBLEMS OF DEVELOPMENT OF INSURANCE MARKET OF UKRAINE. Science and Transport Progress, (2(62), 36–46. https://doi.org/10.15802/stp2016/67285

Issue

No. 2(62) (2016)

Section

ECONOMICS AND МANAGEMENT

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