Insurance Intermediaries in Ukraine: Functional Peculiarities, Problems and Prospects of Development

Abstract

The article is aimed at determining the peculiarities of insurance intermediaries in Ukraine, problems in their activities and prospects for further development. The article substantiates features in the activity of insurance intermediaries, in particular insurance agent, insurance and reinsurance broker by comparing their functions according to a number of signs: direction of insurance service promotion; type of activity; organizational-legal form; participation in the organization of the insurance operations to be carried out. The experience of developed countries in mediation was considered, the number of intermediaries in the European national insurance markets was determined. The comparison was made for the main indicators of activities of the brokerage network in Ukraine (share of the premium received through intermediaries, general insurance premium in the market, dynamics of the number of brokers in Ukraine for 2015–2019, dynamics of the number of contracts concluded through intermediaries in terms of voluntary and compulsory insurance). In the life insurance segment, the domestic insurance companies usually use services of a network of agencies, the number of contracts with brokerage representatives is annually reduced. In addition to insurance, the services of intermediaries are also of demand in reinsurance, but their concentration is inherent only for the field of voluntary property insurance. As a result of the carried out analysis of mediation activities in Ukraine, a number of problems is defined. The directions of their solution together with creation of favorable conditions for further development of domestic insurance market are substantiated.

Keywords

• insurance market
• insurance intermediaries
• insurance and reinsurance broker
• insurance agent
• commission of intermediaries