ON THE DEVELOPMENT OF THE INSURANCE MARKET OF UKRAINE

Abstract

The insurance sector plays an important role in the socio-economic development of the country, effectively managing the risks in the country and protecting the interests of insurers.

As the economy develops, the Ukrainian insurance market is changing rapidly. However, changing economic conditions create new problems that hinder the effectiveness of the insurance market, which is the key to stability and prosperity in society. That is why it is necessary to identify the negative factors influencing the insurance market and search for new promising directions of development.

The state’s interest in insurance development is conditioned by the adoption and approval of insurance market development programs. The article gives a list of the tasks set and fulfilled by the government under these development programs in Ukraine.

The formation and development of the insurance market occurred in the absence of an effective regulatory framework, in the absence of effective state oversight of insurers and in times of economic crisis. Therefore, it is impossible to say with certainty at what stage of development the insurance market of Ukraine is located, because many problems in insurance activity are needed to solve.

The negative factors do not allow the insurance market to fully develop, forcing foreign investors to look for other, more attractive options for investing in the insurance industry. In order to overcome the problems and reform the insurance market, it is necessary to: stimulate insurers to obtain international financial reliability ratings; to define a single and effective strategy for the development of the Ukrainian insurance market; to introduce world standards of insurance business; strengthen the control of insurers by public authorities to ensure solvency and financial sustainability; to create a qualitative system of training highly qualified personnel for the insurance industry; strengthen the work on the creation and implementation of additional regulatory acts.