Development Of Insurance Market Research Articles

Assessment of the External Social Activity of Russian Insurers at the Present Stage of Insurance Market Development

The relevance of the research is associated with the task of more active promotion of the principles and ideas of corporate social responsibility in the insurance community. It is mediated by the duty of involvement of representatives of all types of business in the formation of a civilized social developed public space in Russia.The purpose is to assess the degree of external social activity of Russian insurers at the current stage of development of the insurance market.Objectives: establish the share of insurance companies participating in external socially oriented projects and events; identify the most common forms of their external social activity; assess the level of awareness of potential recipients of insurance services about the participation of insurers in socially oriented events, identify their attitude to such practices.Methodology. The research is based on a content analysis of the factual material of invariant sources and the results of a sociological survey. The fulfillment of the tasks was ensured by referring to general scientific methods of generalization, interpretation of data and their analysis.Results. The share of insurers involved in the implementation of socially oriented projects and activities is currently extremely small. Only 20% of insurance organizations demonstrate consistent active external social activities; there are few large-scale projects. The most common objects of social response are sports, culture and the interests of the population in need of social protection. The awareness of the population about such practices is extremely low and, as noted by the majority of respondents, is able to influence the attitude towards the insurance organization, but not so much that it affects the formed partnerships in the field of insurance.Conclusions. The insurance market demonstrates the passivity of most insurance organizations in participating in the social life of society, going beyond the problems of minimizing risks. Quite often, involvement in the trend of conducting socially responsible business is only declared. The task is to increase the social activity of insurers not only as an ethical aspect of their presence in the socio-economic space, but also as a way to meet the expectations of potential recipients of insurance services and society as a whole.

СТРАТЕГІЧНІ ПРІОРИТЕТИ РОЗВИТКУ СТРАХОВОГО РИНКУ УКРАЇНИ

The article reveals the role of the insurance market in the regulation of socio-economic processes. It is substantiated that the insurance market is an important element of a market economy, respectively, substantiation of the priorities of its development, ensuring the adaptability of the mechanism of state regulation of insurance activities to socio-economic processes is a strategic task. In turn, a developed insurance market contributes to achieving the goals of socio-economic development of the country. The factors that determine the peculiarities of the insurance market development and the ability of the state regulator to perform its tasks and functions in regulating insurance activities have been studied. It is determined that the restraining factors of Ukraine's insurance market development are: increasing military aggression against the country, high inflation, unstable financial condition of insurance companies, lack of optimal ratio in the structure of the insurance portfolio; relative closedness of the insurance sector; low level of integration in the world economic space; underdeveloped segment of long- term insurance, which could be a significant source of domestic investment to support the domestic economy. The main scientific approaches are revealed and the development of the insurance market of Ukraine is assessed. The dynamics of gross and net insurance premiums, gross and net insurance benefits, the level of gross premiums and benefits are analyzed. The main problems are considered and the priorities of the development of the insurance market of Ukraine are substantiated, which include: introduction of alternative mechanisms for assessing insurance risks; increasing the effectiveness of risk management tools in insurance activities; active introduction of information technologies, which will speed up the process of data exchange, simplify the procedure for concluding insurance contracts; increase in the share of long-term insurance in the overall structure; unification of insurance conditions taking into account international standards.

Residential property insurance and markets: Florida's QUASR data

AbstractSection 624.424(10) of the Florida Statutes requires insurers doing business in the State of Florida to file quarterly residential property insurance reports (commercial and residential) to the Florida Office of Insurance Regulation via the Quality Supplemental Report (QUASR) system. The data are reported quarterly at the county level for 13 distinct lines of business and include information on policies in force (and underlying changes in polices during the quarter), premiums, and exposures. The QUASR data are unusual in their level of granularity and as such, should be of potential value to researchers pursuing research topics in the areas of market competition, insurance market development, and insurer/insurance market performance as well as to instructors considering projects involving data management, market and insurer‐level analysis, missing data imputation methods, forecasting, or projects that examine changes across periods of market disruptions and recovery.

Regulatory examinations and life insurance development

PurposeSolvency and market conduct regulations play a crucial role in supporting life insurance development by boosting consumer confidence and securing a stable environment for insurers to write business. The regulation encapsulates not only the legal framework but also its enforcement. This study aims to focus on the latter and investigate the impact of solvency and market conduct examinations on life insurance development within a homogenous legal environment in the USA.Design/methodology/approachTo test the relationship between the regulatory examinations and life insurance development, this study uses annual data for 51 US states over the period 2013–2018 and uses fixed and random effects panel regressions controlling for the possible omitted variables bias and serial correlation. This study constructs two groups of indicators to measure the robustness and ability of regulators to prevent insolvencies and opportunistic market practices and estimate their effects on market development.FindingsThe results show that more stringent regulators with respect to solvency examinations deter life insurers from their markets and channel to those markets with lenient examiners, hurting the development of life insurance in the stringent states. Additionally, regulators boost consumer confidence by providing robust market conduct practices, which results in higher life insurance demand.Originality/valueThis study contributes to the debates about the pros and cons of the current state-led regulation in the USA and the general benefits/costs of regulation for insurance market development.

Trends in the Development of the Insurance Market of Ukraine in the Conditions of Transformational Changes

Abstract. Introduction. In modern conditions, the result of globalization processes are rapid changes in the world economic system, in particular in its financial sphere, which cause not only positive but also negative consequences. Therefore, there is an objective need to deepen research on the functioning and identify promising areas of insurance market development. After all, in the process of their activity, insurance companies ensure the formation of effective market mechanisms for attracting investment resources into the national economy. Purpose. The purpose of the study is to study the main trends in the insurance market of Ukraine in modern conditions of transformational change and globalization processes and substantiation of promising areas to increase its efficiency. Results. It is established that the main destructive factors that hinder the development of the insurance market of Ukraine include: reducing the level of solvency and liquidity; lack of a clear business model; unfounded approaches in financial risk management; uncertainty of the strategy and program of formation of financial security of the insurance market as a component of security of the non-banking financial sector and others. During 2011-2021 there is a clear trend to reduce the number of insurance companies. At the same time, the level of insurance penetration and concentration of the insurance market of Ukraine in premiums is much lower than similar world and European countries. Insurance companies belong to high-risk financial institutions. Therefore, the obligatory structural elements of the strategy of strengthening the financial security of the insurance market of Ukraine are substantiated. In addition, the principles of financial risk management in the financial security system of the insurance market are presented. It is established that in order to increase the competitiveness of insurance companies it is necessary to first adapt their business models to digital requirements, modernize major technology platforms, expand analytical capabilities of databases, improve interaction with all members of the insurance ecosystem. Conclusions. Modern dynamic conditions of globalization and a number of destructive factors necessitate the development of a strategy for the formation of financial security of the insurance market of Ukraine, as well as the justification of rational approaches to managing financial risks of insurance companies. It is established that the reorientation of the insurance market to digital technologies is a defining requirement of the transformational world. The period of implementation of digitalization processes causes insurers to move from outdated sales channels of insurance products to find new ways to communicate with customers, develop innovative approaches to the insurance business. We are convinced that the simultaneous development of internetization, individualization and digitalization will provide a synergistic effect in the process of digitalization of the insurance market of Ukraine and bringing it to a qualitatively new level of development in the conditions of transformational changes.

Perspectives of the development of life insurance in Georgia

Problems in the life insurance market must be taken into account by insurance companies, however, the public must also be aware of the benefits that life insurance can bring to them. By using this insurance, people are able to take care of their family financial stability in the event of an unforeseen event. The aim of the paper is to promote the development of the life insurance market, improve the insurance culture and system, as well as increase public confidence in life insurance, conduct a study of the life insurance market and study the state of its development in Georgia. Systematic and logical generalization, analysis and synthesis methods of research were used to address this issue. Conclusion. Among the factors hindering the development of the insurance market, we can single out: Lack of information; Mentality; Economic situation of the population. At the same time it is necessary to develop the investment market, which will give incentives to people to invest in life insurance. In the field of pension and life insurance to develop and introduce new products that will be maximally adapted to different segments of the population. It is very important to popularize life insurance. Improve the control mechanism and control the objectivity and fairness of the contracts concluded in the life insurance service, monitor the extent to which the parties to the contract fulfill their obligations. It is necessary for insurance companies to adapt their products to different social strata as much as possible and to take into account their capabilities. To develop individual approaches to each customer. Raise public awareness, raise their qualifications and introduce innovative approaches. Keywords: life insurance, pension insurance, term, perpetual and mixed life insurance.

Financial inclusion as an instrument of accessibility to financial services for EU households

Introduction. Taking into account the European integration intentions of Ukraine, the investigation of the experience of the European Union (EU) countries in the direction of ensuring financial inclusion of the population, especially the young people from whom the socio-economic development of these countries will depend in the future, is relevant. The purpose of the article is to study the experience of the EU countries in the direction of increasing the level of financial inclusion as a key tool for the accessibility to the financial services of the population and justifying the possibilities of its application in Ukraine. Results. The development of financial inclusion in the EU countries and the possibility of applying the best European experience in Ukraine taking into account the directions of its European integration are explored in the article. The essence of the financial inclusion is investigated and its main components are defined. Based on the analysis of financial literacy and financial inclusion indices, there have been drawn the conclusions regarding the problems and prospects for the development of financial inclusion in the EU and Ukraine. Conclusion. In order to develop the financial inclusion, it is necessary to create the appropriate conditions for public access to financial, digital, information infrastructure; provide reliable protection against cyber attacks through the development of the cyber insurance market; develop public-private partnership in the financial sphere and establish appropriate strategies at the state and local levels.

The Life Insurance Market in Albania and the Factors that Affect its Development

Life insurance companies play a very important role in the financial sector. Life insurance provides individuals and the economy as a whole, a lot of important financial services. This is one of the main reasons for addressing this topic. In this paper is presented an overview of the progress of the development of the life insurance market among years and recently its trend and current position is shown. There are insurance companies that offer life insurance service in our country, their products are presented to detailed. There are several factors from different fields that directly or indirectly affect promoting the development of the life insurance market. They are presented explained and shown and their progress in parallel with the life insurance market. The special feature of this paper is an econometric study, which explains the relationship that exists between the credit factor mortgage and life insurance. The role of AMF, (Financial Supervision Agency), is mentioned as quite important in the development of the insurance market. The measures taken and targeted remain an objective quite important, on which the performance of the life insurance market depends.

PROBLEMS OF DIGITAL INSURANCE DEVELOPMENT IN THE REPUBLIC OF ARMENIA

Today, almost all sectors of the economy use information systems, technologies, especially various artificial intelligence tools, the use of which leads to the emergence of such a term as digital insurance. Digital insurance does not have a clear definition, but in general it can be described as signing insurance contracts, reviewing, receiving information about an accident, and performing any other insurance-related activities using devices or systems. The article presents the definitions of digital insurance, an attempt is made to present and analyze the main insurance tools (internet, big data, chatbot, blockchain) that are used in the global and insurance markets of the Republic of Armenia. A numerical analysis of artificial intelligence tools of the global insurance market has been carried out. As the main direction in the development of online insurance, the dynamics of online insurance premiums, which characterizes the RA CMTPLI system, the share of online CMTPLI contracts of insurance companies in the total number of CMTPLI contracts and the share of online CMTPLI contracts in the total number of CMTPLI contracts (%). Also, issues were raised that impede the development and expansion of the RA digital insurance market.

Alona Sokolova, Olena Hasii, Oksana Tymoshenko, Nataliia Pedchenko CURRENT TRENDS IN THE DEVELOPMENT OF UKRAINE'S INSURANCE MARKET IN DIGITADIZATION CONDITIONS

Purpose. The purpose of the article is to investigate promising areas for improving the efficiency of insurance products and services through the use of digital technologies while also ensuring financial inclusion. Methodology of research. The study employed methods of tabular and graphical results presentation, logical generalization, comparative analysis, and systematic approach (which takes into account the dynamic functional relationship between the state of the whole and the balance of its constituent elements), dynamic analysis, logical, and theoretical generalization. Results. The authors propose their own interpretation of the concept of "digitalization". An assessment of trends in the development of Ukraine's insurance market has been carried out in order to determine insurance companies' readiness to implement technological innovations that increase the efficiency of the insurance industry. The extent to which InsurTech has penetrated the Ukrainian insurance market has been determined. Recommendations have been provided for the incorporation of digital technologies (Smart City, VAS – Studio of Visual Analysis) into the operations of insurance companies in Ukraine. The practical significance of the research results. The adoption of digital technologies in Ukraine's insurance market will boost insurance companies' efficiency and improve the quality of their insurance services.

Some trends in the development of the Russian insurance market

Some trends in the development of the Russian insurance market

Life insurance as a tool to increase the welfare of the russian population

Life insurance has been the driving force behind the development of the Russian insurance market in recent years. The types of life insurance that are significant insurers in Russia include not only insurance protection for the population, but also compliance with the requirements for increasing financial resources, and thus high economic indicators of human welfare. The article provides a statistical analysis of the development of insurance in Russia on a special rise, which showed a progressive increase in insurance premiums and international agreements to identify risks. Also, it was found that the predominant types are accumulative and investment life insurance, which allow not only to provide insurance protection, but also implement accumulative and investment functions. At the same time, a significant territorial differentiation of insurance premiums for life insurance in Russia and a low level of its penetration were determined. The work systematized the studies of economists devoted to the indication of the determinants of the development of life insurance. An attempt was made to estimate the determinants according to Russian data. The authors built econometric models that allowed to determine the main factors influencing the development of life insurance as a way to strengthen the financial position of an individual in Russia. As a result of the study, it was revealed that at the level of the constituent entities of the Russian Federation, the determinants of demand are both social and economic factors. The stable regressors, significant in all constructed models, were the gross regional product per capita, the average monthly accrued wages, the female population and the number of unemployed. Also significant in some models were the population size and the level of education of the able-bodied population.

ПРОБЛЕМИ ТА ПЕРСПЕКТИВИ АДАПТАЦІЇ ТА ІНТЕГРАЦІЇ УКРАЇНИ У ГЛОБАЛЬНИЙ СТРАХОВИЙ ПРОСТІР

The article substantiates the role and necessity of intensifying insurance relations in society at the national and international levels. Modern unprecedented risks and threats to civilization (natural, anthropogenic, environmental, etc.) facing humanity require the use of effective financial and economic tools to address potential threats in a timely manner. A study of many years of world experience shows that insurance is such a tool. The purpose of the article is to provide theoretical and methodological justification of the prospects of adaptation and integration of Ukraine into the global insurance space. The key arguments for the accelerated integration of the national insurance market into the global insurance system are presented. Possibilities and potential advantages of integration processes between national insurance markets of different countries are identified. An analysis of the changes’ dynamics in accumulated insurance premiums (by classes “Life – insurance” and “Non – life insurance”) among the TOP – 20 most developed countries in the world. The specificity of many national insurance markets is that the structure of insurance premiums is dominated by payments from long-term types of insurance, which are subsequently generated in the form of investments in the economies of different countries. The key indicators of Ukraine’s insurance market development for 2016–2020 are reflected. The focus is on the most dangerous global risks threatening society in 2022. It is substantiated that in the postwar period there will be a need to strengthen and diversify insurance coverage for investment insurance and agricultural risks. Legislative innovations to the Law of Ukraine “On Insurance” have been specified, which will facilitate the adaptation of the national insurance market to the European and world insurance space. Author’s proposals for the formation of a modern model of insurance relations in society, based on international experience. In particular, proposals were made related to the use of public-private partnerships, as well as increasing the social responsibility of stakeholders in the insurance market.

Impact of Economic Factors on Life and Non- Life Insurance Development in Albania – A VECM Analysis

This paper intends to explore the economic factors which stimulate the demand for insurance products in Albania due to the fact that insurance industry has a significant effect on the economic development of a country. Albania is a developing country and insurance market has progressed moderately. Considering density insurance as a proxy of life and non-life insurance market development, the authors have examined the economic determinants of the Albanian insurance market during the period of 2009-2020 based on quarterly data. The analysis is performed using Vector Error Correction Model designing separate models for each of the insurance segments: life and non-life ones. Among several economic variables, this paper examines the effect of GDP, inflation, real interest rate and unemployment. According to the empirical results, GDP per capita has the most significant impact while unemployment is found to be insignificant in respect to life and non-life insurance density. The results are mostly in accordance with the empirical research work, and they are valuable to both academics and experts in insurance industry. The paper contributes to the existing international literature, especially to the literature related to developing countries, being the first one investigating the influence of a set of economic factors on life and non-life insurance industry in Albania. On the other hand, the results of the paper suggest that insurance companies monitor should evaluate these factors in order to increase and improve insurance service available to the public.

Life insurance: features, present state and problems

The essence of life insurance, its features and advantages in comparison with other kinds of insurance is considered. Influence of changes of insurance payments on change of level of payments is analyzed and the interrelation between insurance premiums and insurance payments is found out. The forecast for 2021–2023 on insurance premiums and payments accordingly is constructed. In connection with this, the study of the life insurance market in Ukraine and the identification of the main problems of its development is currently quite relevant. Life insurance plays an important role in ensuring security and social stability in the country. Considering the economic essence of life insurance, it should be noted its feature, which is a combination of properties of insurance protection and savings. In this regard, in the general insurance market of the country, its structural segment has specific features in defining the basic concepts of insurance risk and insured event. Yes, insurance risk is based on the unpredictability of the event. The brake on the development of the life insurance market in Ukraine is that the capitalization and financial condition of the vast majority of insurance companies is unsatisfactory and does not ensure their competitiveness even in the domestic market. The limited amount and imperfect structure of financial savings of most insurers prevent them from becoming an effective institution of social protection and investment in the Ukrainian economy. Among the inhibiting factors should also be noted the limited investment activities of insurers. It is defined the basic problems that hinder the development of life insurance in Ukraine.

Insurance Market Development, Energy Consumption, and Turkey’s CO2 Emissions. New Perspectives from a Bootstrap ARDL Test

Many empirical studies have tested the linkage among CO2 emissions, economic growth, and consumption of energy; however, most have not tested the possible influence of insurance market development on their frameworks. This research aims to provide new perspectives on the empirical literature by exploring the role of insurance market development on environmental degradation. The study utilizes a new technique of the bootstrap Autoregressive Distributed Lag (ARDL) test as introduced by (McNown et al., 2018). The ARDL testing approach is utilized to explore the short and long linkage between the examined variables. Furthermore, the research utilized the Granger causality to explore the of causality linkage among the selected variables. The findings illustrate that economic growth and consumption of nonrenewable energy have positive influence on CO2 emissions. Furthermore, the findings illustrate that the insurance market development has a positive influence on the levels of Turkey’s carbon emissions; this finding is also confirmed through the economic growth channel. The outcomes of the current study suggested that the Turkish policy makers should make strategies and policies to ensure the sustainable development of insurance markets, to reduce environmental degradation by supporting the projects, and to invest in clean energy sources.

Institutional quality, insurance markets, and economic growth: evidence from pooled mean group estimation

ABSTRACT We study the role of institutional quality and insurance markets in the economic growth of middle-income countries between 2005 and 2019. Insurance market development consistently explains long- and short-run growth. Institutional quality is a better predictor of long-run growth, but is more erratic regarding sign and significance for short-run growth.

Potential of Islamic Insurance Market: Islamic Banking and Sukuk Sectors Case Study in Indonesia

This paper predicts the potential of the Indonesian Islamic insurance market, approached by calculating the premium contribution from the Islamic banking and sukuk sectors. This paper aims to determine and analyze the potential development of Islamic insurance market in Indonesia, seen from total contributions from Islamic banking and sukuk sectors over the next five years. The paper uses the Box-Jenkins ARIMA method which is one of the quantitative forecasting methods. The results of this study indicate that over the next five years, the total contribution of Islamic insurance will experience positive growth and it is predicted that it will have a total contribution of IDR 11,568.40 billion in 2023 from Islamic banking and sukuk sectors with the biggest contributor from the Islamic banking sector. The ARIMA forecasting results show a positive trend in the premium contribution of the Islamic banking and sukuk sectors from year to year. Even so, the growth will experience a slowdown. The prediction of a slowdown in the two sectors in its contribution to the Islamic insurance market in Indonesia is a sign that there might be a decline in the total financing growth by Islamic banking. Likewise with the sukuk sector, both state and corporate sukuk are predicted to experience a slowdown in the growth of Islamic insurance premiums.

The problem of risk protection in agriculture of Ukraine

An important specific feature of risk insurance in the agricultural business is the possibility of systemic risks, which are characterized by large amounts of loss-making for agricultural enterprises. In this case, the amount of insurance premiums received by insurers may significantly exceed the amount of their insurance payments. In our opinion, the insurance products offered by Ukrainian insurers in the field of agricultural insurance do not fully meet the needs of consumers. The main problems of Ukrainian insurance organizations providing services in the field of agricultural insurance are the low level of solvency of agricultural enterprises, as well as inflationary processes that make long-term agricultural insurance contracts concluded in the national currency of little demand. The evolutionary development of the Ukrainian insurance market for agricultural risk insurance, in our opinion, should correlate with the development of reinsurance of these risks. This will make it possible to balance the insurance portfolios of insurance companies and provide insurers with additional opportunities for their investment activities. The creation of a specialized national reinsurance company for reinsurance of agricultural risks, in our opinion, will improve the insurance coverage of Ukrainian agricultural enterprises.

Інституціональне забезпечення розвитку агрострахового ринку

Abstract.Introduction. The article considers the problem of institutional support for the development of the agricultural insurance market in Ukraine. The substantiation of the algorithm of reproduction of dynamic process of institutional development which is offered to be realized in three stages is given: 1) assistance of growth of mutual trust of operating subjects of the agroinsurance market; 2) settlement of consolidated liability of all participants in the insurance process in the agricultural sector; 3) creation of conditions for the functioning of a proper insurance environment in the agricultural insurance market. Results. Strategic directions of improving the institutional environment of the agricultural insurance market on the basis of systematic coordination of relevant formal (various laws and regulations, insurance conditions, etc.) and informal institutions (insurance culture, moral and ethical values, etc.), effective infrastructure and information support, effective transaction cost management are proposed. domestic insurance companies, synergistic interaction of direct (insurers, insurers and intermediaries) and indirect (governmental and non-governmental institutions) participants in the agricultural insurance process. The key condition for optimal interaction of agricultural insurance market participants is to increase the level of development of its institutional support, focused on the distribution or redistribution of risks and liability in the time lag. Conclusions.Thus, the process of institutional support for the development of the agricultural insurance market should be considered in terms of algorithmic settlement of insurance interests and opportunities for integration of formal, informal, functional and structural institutions, which are focused on ensuring a culture of providing and consuming agricultural insurance services. Emphasis is placed on the fact that the institutional support for the development of the agricultural insurance market is based on the formation of stable effective demand of potential policyholders for certain insurance services and their direct generation by various insurance companies to timely cover emerging agricultural insurance risks. To promote the sustainability of the agricultural insurance market is its modernization, which focuses on the systematic adoption of strategic measures to organize the reproduction of a proper favorable insurance environment in agricultural insurance.