scholarly journals Improving state regulation of the insurance services market

2020 ◽  
Vol 45 (2) ◽  
pp. 99-107
Author(s):  
Olha Klymenko
Keyword(s):  
Financial Market ◽  
Financial Services ◽  
State Regulation ◽  
The State ◽  
Insurance Market ◽  
Insurance Companies ◽  
Regulation System ◽  
Positive Trend ◽  
The European Union ◽  
Insurance Premiums

An urgent task in the field of public administration of non-banking financial services markets is to improve the regulation of the insurance market. On the example of the insurance services market, the problems of the functioning of the financial market regulation system are highlighted. Suggestions for its improvement are presented to increase the competitiveness of these markets. The development of the Ukrainian insurance market after 2015 to the present has a positive trend, which indicates the effectiveness and managerial ability of the state regulation system. The indicators of the state of the insurance market of Ukraine in comparison with similar indicators of such markets in the countries of the European Union are considered. The dynamics of concentration of the insurance market of Ukraine over the past 15 years has been analyzed. The main trends in the development of competition in this financial sphere have been identified. The necessity of state regulation of the concentration of the insurance market is substantiated. Views on the methodology and tools used in the study of the concentration and competitiveness of the insurance market are presented. Suggestions for improving the methods are given. It is shown that from 2012 to 2019 the Herfindahl - Hirschman index for risky types of insurance and for the insurance market as a whole has been increasing. It is established that according to the gradation of financial market concentration levels using the Herfindahl - Hirschman index, the insurance market of Ukraine corresponds to the degree of low concentration. According to the value of the Herfindahl - Hirschman indicator, the concentration of the life insurance market during 2003 – 2019, with the exception of 2015, is moderate. But the total share of gross insurance premiums collected by the three largest insurance companies in 2017 – 2019 exceeded 50 % of all gross insurance premiums. According to the Ukrainian law, such a market is considered a monopoly. It is shown that when analyzing the state and development of the insurance market of Ukraine, it is advisable to supplement the values of the Herfindahl - Hirschman index with corrective coefficients that take into account regional characteristics of the market, types of insurance, additional indicators of its functioning efficiency. Measures are proposed to accelerate the development of the insurance market of Ukraine by improving its regulation system.

scholarly journals State regulation as the main factor in the formation of the insurance market in developing countries

2020 ◽  
Vol 13 (1) ◽  
pp. 97-107
Author(s):  
Reem Alnajjar
Keyword(s):  
Developing Countries ◽  
State Regulation ◽  
The State ◽  
Insurance Market ◽  
Insurance Companies ◽  
Insurance Premiums ◽  
Role Of The State ◽  
Main Factor

The author reveals the role of the state in the insurance market of Syria, assesses the level of state regulation of the insurance market of Syria, as the main factor in the formation of this sector of the economy of developing countries, analyzes the dynamics of the occupied share of insurance companies in the market depending on the type of company (state, commercial, Takaful) for the period 2011–2017, assesses the dynamics of collection of premiums in the Syrian insurance market and insurance premiums per one employee of Syrian insurers. The main problems of state regulation of the insurance market in Syria.

scholarly journals COMPARATIVE ANALYSIS OF INSURANCE IN UKRAINE

2020 ◽  
Vol 1 (4(106)) ◽  
pp. 102-109
Author(s):  
І. В. Ліченко
Keyword(s):  
European Union ◽  
Comparative Analysis ◽  
Consumer Demand ◽  
System Development ◽  
Well Being ◽  
State Regulation ◽  
Insurance Market ◽  
Insurance Companies ◽  
The European Union ◽  
Insurance System

The relevance of the article is that bringing Ukrainian legislation in line with the insurance legislation of the European Union is one of the priority areas in the economy of Ukraine. The process of adaptation is a complex process given the large volume of regulations. The analysis of the comparative insurance process is the initial stage for determining the methods for implementing the norms of international cooperation at the domestic level. Insurance during the crisis (covid-19) and other negative political and economic events, the decline in the material well-being of the population has created a problem of significant reduction in consumer demand for insurance services. The problem of supporting consumer demand and the competitiveness of insurance companies is especially relevant today. The article provides a comparative comparative analysis of Ukrainian insurance legislation, the purpose of which is to identify regulatory relationships based on a comparison of national legislation and international regulations of one or different historical periods. It is concluded that significant differences in the parameters and proportions of the domestic market in accordance with the standards of the European insurance market indicate that on the path to European integration our country faces complex long-term challenges for the development of the domestic insurance system. In the EU there are unified methods and forms of state regulation of insurance activities, which are established by the relevant directives of the European Union on insurance. In this regard, the strategic perspective of Ukraine's insurance system development should be based on European standards, in particular, it is necessary to improve the work of the regulator, the legal framework, life insurance and health insurance, accident compensation limits, etc. Therefore, in order to create a proper basis for further development of the insurance market, increase its reliability, the regulatory framework should be based on clear, understandable and modern principles that will ensure proper performance of the functions assigned to them by insurers.

scholarly journals RESULTS OF ANALYSIS AND FORECASTING OF THE MAIN FINANCIAL INDICATORS OF THE HEALTH INSURANCE MARKET DEVELOPMENT IN UKRAINE

2019 ◽  
Vol 6 ◽  
pp. 72-82
Author(s):  
Liliia Hala
Keyword(s):  
Health Insurance ◽  
Financial Services ◽  
Insurance Market ◽  
Insurance Companies ◽  
Market Development ◽  
National Commission ◽  
Time Interval ◽  
Financial Indicators ◽  
Insurance Premiums ◽  
Health Insurance Market

In recent years Ukraine against the background of systemic crisis trying to reform socially-oriented areas of society, including voluntary health insurance, which must combine market and social burdens. Under these conditions, an important scientific and practical research is forecasting financial indicators of domestic insurance companies. Aim. Conducting analysis and forecasting of the basic indicators that characterize the financial state of development of the domestic health insurance market. Materials and methods. Research materials were selected from the official websites of the National Commission which carry out state markets regulation of financial services and the League of Insurance Organizations of Ukraine for 2009–2018 years. We used historical, analytical and comparative, systematic, logical, hypothetical-deductive, mathematical and statistical methods. Results. To forecast the financial indicators of the health insurance market in Ukraine (gross insurance premiums and payments; operations transferred to reinsurance, including non-residents; net insurance premiums and payments) for 2019–2020 years; the time interval was set from 2009 year. According to the results of the calculations, we obtained regression models for different financial indicators (6 models). With the help of the selected mathematical tools, the main financial indicators of the market development for 2019–2020 years were forecasted. The analysis of the data revealed that the highest value growth rate (%) in 2020 year will be characteristic of reinsurance operations, including those transferred to non-residents (49.06 %) and the lowest - to gross insurance payments (14,41 %). It is established that the indicator of net insurance payments since 2010 year has been steadily decreasing (from 78.19 %), and according to the forecasted data in 2019 year it may be equal to 46.77 %, and in 2020 year – 44.98 %, the trend will continue to decrease. However, this indicator since 2016 year (53.9 %) and the data forecast for 2019–2020 years are in the regulatory range (from 30.0 % to 60.0 % for different types of insurance activities). Conclusions. According to the results of the research, it is established that in spite of the financial and economic crisis since 2014 year, the domestic health insurance market is characterized by positive dynamics of growth of the main financial indicators (gross insurance premiums and payments, net insurance premiums and payments). At the same time, there is a tendency to decrease the level (%) of net insurance payments indicator from 78.19 % in 2010 year to the forecast in 2020 year – 44.98 %.

scholarly journals DIRECTIONS FOR IMPROVING THE INSURANCE MARKET REGULATION

2019 ◽  
Vol 2019 (7-8) ◽  
pp. 55-70
Author(s):  
Olga KLYMENKO ◽  
Keyword(s):  
Financial Services ◽  
Developed Countries ◽  
Legal Framework ◽  
The State ◽  
Insurance Market ◽  
Insurance Companies ◽  
Main Task ◽  
Market Regulation ◽  
Positive Direction ◽  
Further Development

The current state of the non-bank financial services markets is analyzed using the insurance market as an example. Features and directions of its development are revealed. The author considers the functioning of insurance companies in Ukraine’s market and insurance performance indicators for 2018 and early 2019. Based on the analysis, the problems of the insurance market activity that hinder its development are identified. Ukraine’s insurance market is gradually moving in a positive direction and has considerable potential for further development; however, it is still significantly inferior to similar markets in democratically and economically developed countries. The role of the insurance market in the socio-economic development of regions is researched. It is shown that the stability of functioning of the insurance services market directly depends on the state of Ukraine’s economy, GDP, and average wage and pension. The main factor limiting the rapid growth of this market is the low solvent demand of the population for insurance services. The specifics of the insurance market (along with consideration of this sector of non-banking financial services across the country), also requires detailing the nuances of the activities of entities operating in the regions of Ukraine.In order to increase the protection of consumers of insurance services, the state regulators need to take further measures to free the market from troubled, insolvent, and unscrupulous insurance companies, as well as to establish an economically justified level of remuneration for intermediaries and regulate their activity. The main task to develop the institutions of non-bank financial services, in particular, the insurance market, is to increase Ukrainian citizens’ trust in them, and to integrate the legal framework in this field into the European legislative system. It is shown that the main goals and objectives of further development of these markets in Ukraine are to increase their transparency, capitalization, and liquidity. The relevance of the assessment of the concentration of Ukraine’s insurance market and the concentration indicators are considered. The author analyses the relationship between the concentration of the market and the number of insurance companies on it. In order to improve the depth and reliability of the assessment of the concentration on Ukraine’s insurance market, it is proposed to introduce correcting coefficients to the limiting values of the Herfindahl-Hirschman index.

scholarly journals THEORETICAL ASPECTS OF FINANCIAL MARKET FORMATION AND ANALYSIS OF ITS ACTIVITY IN UKRAINE

2021 ◽  
Author(s):  
Natalya Tataryn ◽  
Marta Bida ◽  
Iryna Batsman
Keyword(s):  
Financial Market ◽  
Financial Institutions ◽  
Financial Services ◽  
Banking Sector ◽  
Insurance Companies ◽  
Financial Resources ◽  
Economic Sectors ◽  
Insurance Premiums ◽  
Economic Relations ◽  
Effective Development

Our article is devoted to the theoretical aspects of the formation of the financial market and analysis of its activities in Ukraine. In economic essence, the financial market is a set of economic relations associated with the distribution of financial resources, purchase and sale of temporarily free cash and securities. The purpose of the financial market is to provide enterprises with appropriate conditions for attracting the necessary funds and selling temporarily free resources. Effective development of the financial market will ensure the formation of investment processes, increase GDP in the country, as well as create opportunities for the development of various economic sectors. In view of this, the article fully reveals the essence of the concept of the financial market through the definition of domestic and foreign scientists. Theoretical bases of activity of the financial market in Ukraine, and also use of the basic functions (namely tasks) and the principles applied on it are considered. The role of objects and subjects of the financial market is defined. Among the objects are various market instruments, which reflect the temporarily free funds (financial resources) of the subjects of the financial services market, which include the state, households, financial and non-financial institutions. In particular, the activities of financial market entities that are most active in Ukraine, namely financial institutions, which include commercial banks and insurance companies, are analyzed. The dynamics of the number of changes in banking institutions and insurance companies is studied. A comparative description of the dynamics of revenues and expenditures of the banking sector for 2015-2019, as well as current information for January-September 2020. A comparison of the main indicators of insurance companies in the domestic market for the first quarter of 2019-2020, namely: the volume of gross insurance premiums, the volume of net insurance premiums, the share of net insurance premiums, as well as the number of insurance contracts. Based on the results of the study, the directions of improving the financial market in Ukraine are proposed.

scholarly journals Voluntary medical insurance in Ukraine: state and prospects of development

2021 ◽  
Vol 27 (1-2) ◽  
pp. 70-75
Author(s):  
Z.S. Mysak ◽  
Keyword(s):  
Health Insurance ◽  
Financial Services ◽  
Practical Importance ◽  
Medical Insurance ◽  
State Regulation ◽  
Insurance Market ◽  
National Commission ◽  
Medical Expenses ◽  
Insurance Premiums ◽  
Insurance Contracts

Aim. The paper analyzes the state of the voluntary medical insurance in Ukraine and identifies the tendencies of its development. Material and Methods. The research was conducted on the basis of consolidated reporting data of the National Commission for State Regulation of Financial Services Markets using statistical methods, structural-logical analysis and systematic approach. Results and Discussion. According to the results of the study, the permanent health insurance is a dominant segment in the market of voluntary medical insurance in Ukraine; however the medical expenses insurance shows a steady upward trend. During the study period, the number of concluded contracts by type of medical insurance increased by 3.1 times. The increase in contracts on health insurance against disease turned out to be the most significant: in 2019, 4.7 times more contracts were concluded than in 2015. The dominance of corporate medical insurance in the segment of the market of permanent health insurance was established, while the insurance premiums made by individuals prevailed in the segment of health insurance against disease and medical expenses insurance. When studying the level of payments under voluntary medical insurance contracts, it was found that the highest level of payments had been recorded for permanent health insurance (56.95% - 62.12%). In the result of analyzing the level of reinsurance in the voluntary medical insurance market, a reduction in the ratio of insurance premiums transferred to non-resident reinsurers was established. On the basis of which it can be affirmed that the inwards reinsurance in Ukraine is being formed. The formation of the inwards reinsurance market in Ukraine has significant prospects, as it will ensure the attraction of funds into the national economy and promote integration into the international reinsurance space. Conclusions. The development tendencies study of the voluntary medical insurance is of practical importance for assessing and increasing the competitiveness of the medical insurance market in Ukraine

scholarly journals Bancassurance as a form of effective cooperation between banks and insurance companies

2020 ◽  
Vol 11 (2) ◽  
pp. 58-65
Author(s):  
R. Mamchur ◽  
◽  
О. Nazarenko ◽  
Keyword(s):  
Financial Market ◽  
Financial Services ◽  
Swot Analysis ◽  
Banking System ◽  
Insurance Market ◽  
Insurance Companies ◽  
Settlement Services ◽  
Banking Institutions ◽  
Number Of Customers ◽  
Further Development

At the present stage of financial market development, the needs of individual clients are constantly growing. Competition in the market of traditional services between banks, as well as between banks and non-banking institutions is intensifying. With this in mind, banks must constantly work to diversify their sources of income, develop new services for the banking system; as a result, there are products of cooperation such as bancassurance. However, the level of their development is quite low, which requires appropriate research and generalization of their results in order to develop appropriate recommendations to improve the efficiency and further development of this type of cooperation. The leader in the provision of parabanking services in Ukraine is the insurance market, but its level of development is much lower than in foreign countries. The combination of banking and insurance services is one way to maintain and even increase the number of customers and assets. The interaction of banks and insurance companies can take various forms, including bank insurance and the provision of banking services to insurance companies – placement of funds, settlement services and others. The article examines the emergence of the concept of bancassurance, as a relatively new type of interaction between banks and insurance companies. The formation of such cooperation in Ukraine took place during three main stages. The main advantages of bancassurance singled out separately for insurance companies, for banks and for the clients themselves – consumers of financial services. An analysis made in terms of five banks in the Ukrainian financial market, and the most relevant insurance products they offer and with which companies work closely selected. The study found that in the insurance market of Ukraine, the dynamics of net insurance premiums and payments tends to increase. Insurance companies through the sale of services in banking institutions receive about a third of income. For the purpose of generalization, a SWOT analysis of bancassurance presented, with a clear identification of advantages, disadvantages and opportunities for further development in the Ukrainian financial market. It is determined that bancassurance has many advantages and potential opportunities for further improvement and expansion within Ukraine, while the shortcomings and threats are based on the existing shortcomings of the domestic financial market.

scholarly journals FOREIGN EXPERIENCE IN FINANCIAL SERVICES REGULATION AND ITS USE IN UKRAINE

2020 ◽  
Keyword(s):  
European Union ◽  
Public Relations ◽  
Financial Markets ◽  
Financial Market ◽  
Financial Services ◽  
Legal Regulation ◽  
State Regulation ◽  
The European Union ◽  
Foreign Experience ◽  
The World

The article deals with the problems of public relations in the sphere of financial services in foreign countries. The foreign experience of regulation of the sphere of financial services is studied and possibilities of its use in Ukraine are determined. An example of a model of legal regulation of the financial services industry in Ukraine may be the model used by the European Union. The European Union in the field of financial services has introduced a system of authorized institutions and bodies of the European Union, based on the principles of the internal market, aimed at consolidating a competitive efficient financial market, ensuring a high degree of financial stability, consumer protection and control. The regulation of financial markets in different countries of the world usually works within two different models. The first model involves regulation by predominantly state bodies, and only a small part of the powers overseeing, controlling, establishing the rules for conducting operations are transferred to associations of professional market participants - self-regulatory organizations. The second involves the transfer of as much authority as possible to self-regulatory organizations. At the same time, the state retains basic control functions and the ability to intervene at any time in the process of self-regulation. An important issue in the implementation of the European Union's financial services policy is the organization of a prudential oversight structure for financial market participants.However, the effectiveness of its operation depends on the specific institutional structure of supervision established in the Member States of the European Union in most countries of the world as a regulator of the banking system entrusted to the central bank. The experience and possibilities of introducing positive experience in regulating public relations in the sphere of financial services of such countries of the European Union as Germany, Great Britain, France, Denmark, Czech Republic, Hungary, Estonia, Latvia, Malta and the experience of the Russian Federation are discussed in detail The study of the financial services market regulation systems makes it possible to conclude the gradual development of common rules, rules and principles that are recognized by most countries. The need for unification is linked to the processes of interstate integration, internationalization and globalization of the financial markets, which initiate the gradual blurring of the identification boundaries between different national models of state regulation of the financial services market.

scholarly journals STATE REGULATION OF CAPITAL MARKET IN UKRAINE

2021 ◽  
Vol 1 (21(49)) ◽  
pp. 4-9
Author(s):  
Lyudmyla Berezovska ◽  
Anastasiia Kyrychenko
Keyword(s):  
Stock Market ◽  
Capital Market ◽  
Financial Services ◽  
Money Market ◽  
State Regulation ◽  
The State ◽  
National Commission ◽  
Financial Instruments ◽  
The European Union ◽  
The Law

In modern conditions a developed stock market is a necessary element of the country's economy effective functioning as it establishes legal and economic relations between businesses that need financial resources and individuals who can provide them. The level of business activity in this sector determines the state of economic development of the country. Exchange activity in a market economy requires government regulation in order to ensure the efficiency, balance and stability of the exchange market. The purpose of the article is to analyze the state regulation of the stock market in Ukraine. The article analyzes the dynamics of trading on the stock market of Ukraine, identifies problems with its operation. The main models of state regulation of the financial services market are considered, namely: monoregulatory and polyregulatory. It is concluded that there is a multi-regulatory model of organized markets in Ukraine, as regulatory functions are assigned to the National Commission on Securities and Stock Market and the National Bank of Ukraine on domestic government bonds, money market derivative contracts, money market instruments. The state regulation of the stock market in Ukraine in accordance with the Law of Ukraine "On Amendments to Certain Legislative Acts of Ukraine on Simplification of Attracting Investments and Introduction of New Financial Instruments" of June 19, 2020 is studied. which includes capital markets and commodity markets; improving the organization of the depository and clearing system; introduction of a trade repository and a liquidation of the netting mechanism; enshrining in law the differences between qualified and unqualified investors; introduction of green bonds as a new type of financial instruments. It is concluded that the adoption of the above law is an important step in the development of the stock market, as this law amends the law "On Securities and Stock Market" and establishes uniform rules for all exchange traders, defines the market regulator and circulation mechanism. financial instruments, radically changes the structure of the capital market and adapts Ukrainian legislation to the norms of the European Union in the field of financial services, bringing Ukraine closer to the global financial space.

scholarly journals DIRECTIONS OF DEVELOPMENT OF THE FINANCIAL SERVICES MARKET OF UKRAINE

2019 ◽  
Vol 4 (5) ◽  
pp. 412 ◽  
Author(s):  
Serhiy Shkarlet ◽  
Valeriia Prokopenko ◽  
Maksym Dubyna
Keyword(s):  
Financial Institutions ◽  
Financial Literacy ◽  
Financial Services ◽  
Financial Stability ◽  
State Regulation ◽  
The State ◽  
Financial Intermediaries ◽  
Regulation System ◽  
Event Analysis ◽  
Public Authorities

Development of the financial services market is an important component of the national economy’s development. Within this market, credit and investment resources are formed, which are the basis of economic development of the real economy sector of the state. It is this that determines the importance of creating conditions for improving the efficiency of financial institutions, which become intermediaries between persons who have free funds and those economic entities that they need. The outlined justifies the relevance of the topic. Consequently, taking into consideration the objective of the study, the following aim of its implementation was set: to identify and substantiate the main determinants of the development of the financial services market in Ukraine. To achieve this goal, the following tasks were set and solved: to identify the main, most important, measures of transformation of the environment of financial institutions functioning; to substantiate the essence of such measures and the peculiarities of their implementation; to specify basic actions within the limits of separate determinants of the financial services market development, to describe their applied character. Method. In the course of the research, a range of different scientific methods was used. Among the general techniques, it is necessary to allocate methods of observation, comparison, abstraction. It is advisable to include the method of economic analysis, synthesis, system approach, content methods, and event analysis in specific research methods. Results. Universal priorities of financial services markets development in different countries are determined and systematized, the analysis of which made it possible to investigate perspective determinants of the development of such a market in Ukraine, peculiarities of their introduction into the functioning of the financial services sphere are described. Among these measures are the following: increase in the stability of financial institutions, increase the transparency of the functioning of producers and consumers of financial services, raising the level of financial literacy in society, reforming the state regulation system of the activities of financial intermediaries, the formation of the trust infrastructure system. Taking into consideration the received scientific outcomes, the justification of peculiarities on the implementation of these priorities in the system of the financial services market functioning in Ukraine is conducted. Practical implications. The research results obtained in the course of the research implementation regarding the possibilities of changing the financial services market for improving the efficiency of financial institutions work have an applied character, and their implementation will make it possible to form a new environment for the functioning of such economic actors. This will facilitate the transformation of financial resources to increase the formation of investment and loan funds. The results obtained can be used by public authorities that regulate the activities of financial institutions in the process of developing new strategic documents for the development of the financial services market in Ukraine. Value/originality. The conducted research is relevant, considering the significant impact of the financial services market on the development of the national economy, the proposed measures for the development of such a market are applied and can be used by public authorities in the regulation of the activities of financial institutions. This research has been conducted within the framework of the scientific work implementation Department of Finance, Banking and Insurance, Chernihiv National University of Technology, Ukraine on the following topics: “Financial stability of economic systems in crisis conditions of management” (No. 0115U001149) and “Development of financial intermediaries in the turbulent conditions of the national economy’s functioning” (No. 0115U001149).

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