DIRECTIONS FOR IMPROVING THE INSURANCE MARKET REGULATION

Abstract

The current state of the non-bank financial services markets is analyzed using the insurance market as an example. Features and directions of its development are revealed. The author considers the functioning of insurance companies in Ukraine’s market and insurance performance indicators for 2018 and early 2019. Based on the analysis, the problems of the insurance market activity that hinder its development are identified. Ukraine’s insurance market is gradually moving in a positive direction and has considerable potential for further development; however, it is still significantly inferior to similar markets in democratically and economically developed countries. The role of the insurance market in the socio-economic development of regions is researched. It is shown that the stability of functioning of the insurance services market directly depends on the state of Ukraine’s economy, GDP, and average wage and pension. The main factor limiting the rapid growth of this market is the low solvent demand of the population for insurance services. The specifics of the insurance market (along with consideration of this sector of non-banking financial services across the country), also requires detailing the nuances of the activities of entities operating in the regions of Ukraine.In order to increase the protection of consumers of insurance services, the state regulators need to take further measures to free the market from troubled, insolvent, and unscrupulous insurance companies, as well as to establish an economically justified level of remuneration for intermediaries and regulate their activity.
The main task to develop the institutions of non-bank financial services, in particular, the insurance market, is to increase Ukrainian citizens’ trust in them, and to integrate the legal framework in this field into the European legislative system. It is shown that the main goals and objectives of further development of these markets in Ukraine are to increase their transparency, capitalization, and liquidity.
The relevance of the assessment of the concentration of Ukraine’s insurance market and the concentration indicators are considered. The author analyses the relationship between the concentration of the market and the number of insurance companies on it. In order to improve the depth and reliability of the assessment of the concentration on Ukraine’s insurance market, it is proposed to introduce correcting coefficients to the limiting values of the Herfindahl-Hirschman index.