STUDY OF THE FACTORS INTLIENCING THE WORLD INSURANCE MARKET

Abstract

The article is devoted to the study of the world insurance market development, the analysis of the factors which influence an object of the research. The role of insurance markets in the economics of each country is extremely significant. In developed countries people actively use life insurance, health insurance, property insurance and financial risk insurance. Considering that a prime purpose of insurance companies is to provide public with insurance services and protection, there is a need to pay detailed attention to the development of insurance market due to the fact that every country has its unique and distinctive insurance market character. The world insurance market can be conditionally divided according to the country’s economic development criteria. In this article we have analyzed world insurance market; the main object of analysis was the amount of insurance premiums. This analysis was conducted in several directions, namely by world regions, by economic development of countries and by economic development in the world. According to the results of the analysis of insurance premiums, there was a considerable increase in the investigated index, which might state a gradual development of a regional insurance market. It was determined that this growth occurred at the expense of the developed part of the American region insurance market, it was also figured out the distribution of shares of dynamic regions and developed regions in the world insurance market. The necessity to research dominant factors, which might deteriorate world insurance market conditions, has been proved . The amount of insurance premiums as a resultant feature was analyzed in the paper. Using the regressive and correlation analysis methods for the insurance premiums data revealed a direct strong dependence of a country’s insurance market on its gross domestic product. The mathematical model under examination was tested for adequacy, significance and reliability using appropriate indicators. The factors, which analyzed in paper , were checked for statistical significance. Gross domestic product and external balance of a country turned out to be influential factors in the process of testing. The study proves that a current condition of a country’s insurance market is primarily affected by the economic development of a country.