Popova Liubov, PhD (Economics), Associate Professor of the Department of Public, Corporate Finance and Financial Intermediation, Yuriy Fedkovych Chernivtsi National University, Ukraine

ORCID ID: 0000-0001-7015-5567
e-mail: rusulliubov@gmail.com

The Current State of the Insurance Market and New
Requirements for Its Further Development

Abstract. Introduction. The article defines the main trends of development of the insurance market of Ukraine in modern conditions. The dynamics of key indicators such as the number of insurance companies, volume of gross premiums and payments, volumes of assets, volume of formed insurance reserves and authorized capital are analyzed. The activity of insurance companies in the sphere of investment is investigated. The main problems of market development and their influence today are outlined. Along with this, the dynamics of changes in profits and losses of insurance companies of Ukraine is researched. Established that the modern insurance market requires the introduction of innovative technologies to increase growth trends. It is proved that the focus on innovation is critical for future success and development of the insurance market of Ukraine and the most relevant directions for their implementation are identified.

Purpose. The purpose of the article is to study the dynamics of the development of the insurance market, the substantiation of the main problems and the impact of the introduction of innovations in the insurance business.

Results. The main trends of development of the insurance market of Ukraine in the modern conditions are determined. The basic indicators of development and factors of influence on them are investigated. The state of investment of insurance companies in the Ukrainian economy is characterized. On the basis of the research, the main problems of the insurance market development and ways of their solution were determined. It has been proved that in order for the insurance industry to remain in the modern trend and could develop in the face of changing risks, to increase its operational efficiency, it will need the necessary innovations that will better meet customer needs; gaining competitive advantage; increase of efficiency of work; improvement of selection of risks; development of new modern insurance products.

Conclusions. The analysis of the insurance market of Ukraine shows a low level of social protection of the population of the country, since the income from life insurance premiums and the number of insurers in this type is too small compared to non-Life insurers to ensure sustainable development. It can be concluded that in general the level of insurance penetration in Ukraine is low. However, according to the Comprehensive Program for the Development of the Financial Sector of Ukraine, a gradual increase of this indicator is planned. The main task of solving problems is within the competence of insurers as subjects of management. It is these institutions themselves should be interested in leveling up such problems, reducing the impact on their activities. Solving the problems of the microscope will, first of all, increase the competitiveness of insurance companies. It should be noted that insurers should pay attention to the innovative technologies and informational awareness of individuals, in particular, concerning the products of a product, their advantages, those positive aspects, which allows insurance to be used as a method of reducing the risk of loss.

Keywords: financial market; insurance market; insurance companies; investing; innovations; insurance service.

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