The role of insurance services scope in the economy of the regions

Abstract

This paper discloses peculiarities of forming the contribution of the region’s insurance sector into the gross regional product (GRP). The algorithm and the stages of cash flows transformation in the system of insurance, services reproduction and the GRP forming have been considered. It has been found that value added, which is formed at the stage of creating the insurance product, is quantitatively formed in the process of value distribution. Certain suggestions have been formulated to improve the methodology of contribution assessment of the “Financial Corporations” sector and the “Insurance Corporations and Pension Funds” subsection. The following main trends of increasing “the share of insurance in GRP” have been marked out: creating conditions for contributions to increase the number of resident insurance companies, mutual insurance societies and insurance mediators (insurance agents and brokers); making the techniques of more accurate GRP working out while combining these with perfecting statistical, accounting and tax reporting by the subjects of insurance; creating attractive investment conditions in the regions.

Keywords

• gross domestic product
• gross regional product
• total output
• intermediate consumption
• added cost
• insurance
• insurance market
• insurance product
• insurance services
• insurance premium
• insurance reserves
• policy holder
• profit maker