THE ANALYSIS OF THE CURRENT SITUATION OF THE INSURANCE MARKET OF UKRAINE

Abstract

The insurance market is an integral part of the financial market, as it responds sensitively to all the problems in it. Positive changes in the economy, increasing the welfare of the population contribute to the activity of insurance companies, and the stable development of the latter creates conditions for improving the state of the economy by investing their accumulated cash in various areas and industries.

The modern insurance market has reached a certain level of development, but has not become quite stable and in its characteristics does not meet the current challenges of the Ukrainian economy and the requirements of world insurance markets in the process of globalization.

Insurance market - a special area of ​​monetary relations, where the object of sale is a specific service - insurance protection, formed the supply and demand for it.

Over the past five years, we can observe the tendency to reduce insurance companies. This is due to the elimination of companies other than life insurance. The main reasons for reducing the number of insurance companies are their lack of capitalization, low asset quality, devaluation of the national currency, an unstable internal political and economic situation in the country.

Over the past years, the development of the insurance market has slowed down, because the necessary reforms, both legislation and the market as a whole, have not been carried out.

The following factors hinder the development of the Ukrainian insurance market: the absence of a clear policy in the field of state regulation and effective supervision of the activities of market entities, which facilitates shadowing of operations, increase of financial circuits, outflow of capital abroad; decrease of demand for insurance services in the conditions of lowering the solvency of the population, low level of trust in financial institutions; lack of mechanisms for tax incentives for investment activity of insurance companies, low level of long-term life insurance market development; underdevelopment of the rating system of insurers, market opacity, lack of effective mechanisms for protecting the rights of policyholders; lack of infrastructure development, absence of an approved state concept of insurance market development, state insurance intermediary training programs (brokers, underwriters, emergency commissioners, etc.); weak stock market; as a result - the lack of reliable financial instruments for investing, low quality assets to cover insurance reserves.

The formation of the insurance market in Ukraine, its further successful development will depend on expanding the list of insurance services, increasing their competitiveness, expanding the infrastructure, increasing the requirements for the establishment of the activity of insurance organizations, further integration of Ukraine into international structures, and establishing an optimal structure of the relationship between compulsory and voluntary insurance.