Study of the Character of Functional Links Between the Main Integral Indicators of the Market of Voluntary Personal Insurance in Ukraine

Abstract

The article presents a multi-factor econometric model that demonstrates availability of a linear dependence of insurance settlements on a number of “life” insurance companies and gross insurance premiums in the market of personal insurance of Ukraine. Values of parameters of the econometric method satisfy conditions of validity and efficiency and their insignificant shift is justified by the use of the ridge regression. Use of the latter was necessary, since a multi-collinearity was detected. A conclusion could be made from this model about monopolisation of the market of personal insurance in Ukraine. Similar conclusion could be made on the basis of the developed by us econometric model of dependency of a number of “life” insurance companies on average monthly spendings of the population with consideration of the inflation. The article conducts assessment of the market of voluntary personal insurance with the help of the model data and makes conclusion on its future prospects.

Keywords

• market of voluntary personal insurance
• gross insurance premiums
• “life” insurers
• insurance settlements
• multi-factor economic and mathematical model
• linear regression
• time series trend
• approximation function