The Economic-Legal Analysis of the Placement of Insurance Reserves of Insurance Companies and Reinsurance for Non-Residents

Abstract

Insurance legislation defines the directions and norms of placement of insurance reserves and provides for reinsurance in the case of large insurance amounts, insurance companies make economically reasonable decisions for themselves. The article is aimed at analyzing the directions of investment of funds of insurance reserves by insurance companies in Ukraine in terms of checking the legal conditions of the insurance business and the optimal reinsurance for non-residents from the point of view of the theory of the open economy. The analysis procedure is used both for the entire insurance market in Ukraine, separately for the life insurance market sector, and the types of insurance other than life insurance. The research time period is: 2013-2018. The following negative macroeconomic tendencies are detected: a decrease in the number of insurers, assets and other key indicators. The stock of collateral for the share capital is significantly reduced, there have been fluctuations and a decrease in the value of registered capital of insurers. There is a positive tendency for insurers to increase their reserves during the researched period. The preferential placement of reserves takes place in bank deposits. Bank metals, stocks, bonds and investments in the Ukrainian economy are uninteresting for insurers. There were no significant structural changes in the placement of assets after the «Revolution of Dignity». It is identified that the market for reinsurance services in Ukraine is optimally open, most reinsurance premiums remain in the country with national suppliers. Non-resident insurers are fully committed.

Keywords

• insurance
• insurance reserves
• reinsurance
• insurance market
• insurance premiums