Abstract
The fact that the accumulated investment potential (IP) of insurance companies (IC) does not have a significant impact on the processes of economic growth in Ukrainian practice actualizes the task of researching the practice of investing in the activities of domestic insurers. The purpose of the study is to find out, classify and highlight the main factors that influence the formation of the Ukrainian IC’ IP and give recommendations for overcoming a number of related difficulties. According to the results of investigation of the Ukrainian insurance industry development trends in 2011–2018, it was concluded that rates of their IP accumulation are insufficient. There is a decrease in the aggregate value of insurers’ investment assets and a reduction in the composition of investment attractive financial instruments. Low efficiency and simplification of investment strategies of IC are noted. The factors that exert a stimulating and inhibitory influence on the investment processes in the Ukrainian insurance market were identified. Ways and tools were proposed to strengthen the effect of incentive factors and eliminate or minimize the effect of the considered restrictive factors that can be used in the practice of state regulation of the insurance industry of the country. Considering the examined factors should allow the state regulators making more effective decisions to improve the investment activity of insurers and enhance its importance in the development of the national economy.
Highlights
insurance companies (IC) had the largest investment potential (IP) in the non-banking financial sector of Ukraine in the early 2000s
Ukrainian IC increased by 40.4%, while and their ing more active processes of increasing the IP of investment assets increased by 46.8%
Stimulating and limiting factors regarding the development of the IP of the insurance industry of Ukraine were highlighted and compared, new types of risks were discussed
Summary
IC had the largest investment potential (IP) in the non-banking financial sector of Ukraine in the early 2000s. Despite the dynamic development of the insurance industry in Ukraine recently, the growth of insurance payments and the accumulation of IP of IC were slower than banks and joint investment institutions (NBU, n.d.; Ukrainian Association of Investment Business, n.d.). Increase in the volume of insurance premiums attracted, and the expansion of insurance protection types stimulate the accumulation of investment potential of domestic insurance companies. In this context, it becomes relevant to research the existing obstacles and trends of investment development in the country’s insurance sector, identify the problems that hinder the more active expansion of the IP of IC, and develop ways to overcome them
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
