Bìznes Inform (Oct 2019)
Assessing the Financial Security of the Insurance Market in Today's Environment
Abstract
The article is aimed at studying the level of financial security of the insurance market of Ukraine, taking into account the significant impact of this sphere of the financial market on the overall level of economic security of the country. The main essential characteristics of the financial security of the insurance market are defined and the main indicators of the financial security of the insurance market in Ukraine for 2016-2018 are analyzed, as well as their thresholds in accordance with the current legislation. To assess the level of financial security of the insurance market as an integral part of the country's economic security, the indicators proposed by the Methodical recommendations for calculating the level of economic security of Ukraine were used, i.e.: insurance penetration rate, insurance density indicator, long-term insurance share in total premiums collected, level of insurance payments, share of premiums owned by non-resident reinsurers, and share insurance premiums for the three largest insurance companies in the total insurance premiums income. On the results of the study, an overall decrease in the activity of the insurance market during 2016-2018 and the volatile level of almost all major economic indicators are identified. The calculated quantitative values indicate close to dangerous level of financial security of the Ukrainian insurance market. On the basis of the analysis, internal and external threats to the financial security of insurance companies are determined, and methods of ensuring the financial security of the insurance market in Ukraine are identified and proposed. Significant variability of processes taking place in the Ukrainian market is noted, which makes it difficult to predict the future market situation. The results of the study can be used to further research the progress of economic processes in the insurance market of Ukraine in order to elaborate a strategy for its development.
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