Especially
currently popular form
implementation of rental mechanisms is
leasing
Name
specific form of rent - leasing
– comes from the English lease –
"rent", "letting". Hence the renter
tenant in English language– lessee, and
lessor, lessor.
According to
Art. 2 of the Federal Law “On Leasing”,
leasing is a type of investment
activities related to the acquisition
property and its transfer on the basis
leasing agreements for individuals or
legal entities on certain
conditions for a certain period and for
a certain fee with the possibility
transfer of ownership of an item
leasing to the lessee.
Insurance contract
terminated in the following cases:
expiration
actions;
execution
insurer of obligations to
the insured under the contract in full
volume;
non-payment by the insured
contributions on time;
liquidation
the insured who is a legal entity
person, or death of the policyholder,
being an individual;
liquidation
insurer;
acceptance by the court
decisions on recognition of a contract
invalid.
Terminates
ahead of schedule at the request of the policyholder
or the insurer, if provided
terms of the contract, as well as by agreement
sides If one of the parties intends
terminate the contract early, she must
inform the other person about this
party at least 30 days before
expected termination date
agreement.
If the contract is terminated by
at the request of the policyholder, then the insurer
reimburses him for the amount of insurance paid
contributions for the past period minus
expenses incurred. If at the same time
early termination of the contract
justified by violation of rules
insurance by the insurer, then
the latter must return to the policyholder
paid insurance premiums without any
deductions.
In case of early termination
insurance contract on initiative
insurer paid insurance premiums
must be paid to the policyholder
fully. If the insurer's requirement
By early termination agreement
justified by violations of insurance rules
on the part of the insured, then the insurance
the company reimburses him for what he has paid
insurance premiums minus incurred
expenses.
Generally accepted
insurance systems are considered
the following:
Insurance by
proportional liability.
Insurance
liability for the first risk.
According to the limit system
responsibility.
Q
- insurance compensation
T – actual
amount of damage
S
– insurance amount under the contract
W
– valuation of the insurance object.
For
proportional system
characterized by the insurer's participation in
compensation for damages, which
remains at his risk. Degree of completeness
insurance compensation the higher the
less difference between the sum insured
(S)
and assessment of the insurance object (W).
Insurance
liability for the first risk
provides for payment of insurance
compensation in the amount of damage, but within
insurance amount. Under this system
compensated damage within the limits of the insurance
amount (first risk) is compensated
completely, and the damage exceeds the insured amount
(second risk) is not reimbursed at all.
Insurance
according to the maximum liability system
provides for damages
insurers in firmly established
borders. The initial or
minimum and final or maximum
level of damage to be compensated
from the insurer.
Special
insurance legislation governing
specific insurance relationships,
includes federal laws, decrees
President of the Russian Federation, Government resolutions
Russian Federation on insurance issues. The most important
among them is the Law of the Russian Federation “On
organization of insurance business in the Russian Federation",
which was originally called
"About insurance."
After joining
force of the second part of the new Civil
Code of the Russian Federation, issues of conclusion and
execution of the insurance contract
regulated by Chapter 48 of the Civil Code of the Russian Federation “Insurance”.
Exist
laws and other legal acts on certain
types of insurance, such as the Law of the Russian Federation
“On medical insurance of citizens
RF"; laws related to various
types of compulsory insurance. Among
they should be noted the federal law
“On compulsory civil insurance
liability of vehicle owners
funds."
Insurance
under a general policy it is possible to carry out
if the object of insurance is not
mandatory and advisory
character: property; property divided
at the party; property insurance conditions
similar; the contract is limited
for a certain period.
If they do
heterogeneous lots are insured
property, then the specific size
the amount insured is indicated in the insurance
policy. Approximate
the amount of the insurance premium is made
clause “the premium is determined on
based on standard insurer rates
as a percentage of the total lot
property value."
Policyholder and
the insurer has the right not to limit
the contract is valid for a certain period.
At the same time, the General Policy includes
all essential terms of the contract.
It is necessary to provide specific
conditions (transportation, packaging). By
Insurer at the request of the policyholder
obliged to issue insurance policies By
individual lots of property subject to
covered by the general policy.
In order to ensure
social interests of citizens and interests
state law may establish
life, health and property of state
employees of certain categories.
Mandatory state insurance
carried out at the expense of funds allocated
for these purposes from the appropriate budget
ministries and other federal authorities
executive power (policyholders).
Compulsory state insurance
carried out directly on
based on laws and other legal acts
about such insurance specified in these
acts of state insurance or
other government organizations
(insurers), or on the basis
insurance contracts concluded in
in accordance with these acts by insurers
and policyholders.
Mandatory
state insurance is paid
insurers in the amount determined
laws and other legal acts on
such insurance. .
Agreement
insurance is an agreement
between the insurer and the policyholder.
The agreement is concluded in writing.
The contract is considered concluded if
an agreement was reached between the parties
on all its essential terms. At
concluding property agreements
insurance
achievement is considered significant
between the parties to the agreement: 1.
About specific
property or other property
the interest that is the object of insurance;
2. About the nature of the event, in case
the occurrence of which is carried out
insurance ( insured event); 3.
ABOUT
the amount of the insured amount; 4. About the deadline
validity of the contract.
To the essential
terms of the personal agreement
insurance include
the following conditions: 1. About the insured
face; 2.
About the nature of the event, in case
the occurrence of which in the life of the insured
the person is insured; 3. O
the amount of the insured amount; 4.
About the deadline
validity of the contract.
Captive
– joint stock
Insurance Company, serving
predominantly corporate insurance
interests of the founders, as well as independently
economic entities included in
structure of multi-industry concerns
or financial and industrial groups (FIGs).
The activities of a captive are related to
commercial banks, pension and
investment funds and others
financial and credit institutions (FCI)
operating in a system of multidisciplinary
concerns and financial industrial groups.
They are the founders
captiva.
Non-state
Pension Fund
- a special form of personal organization
insurance guaranteeing rental
payments to the policyholder upon reaching
of a certain age.
Cooperative
insurance
– non-state, consisting in
carrying out insurance operations in
cooperative.
32. Types of insurer expenses.
2. non-operating
expenses – for organizing the issue of securities
papers; legal costs and arbitration
fees; expenses in the form of interest on
debt obligations; expenses for
payment for bank services; fines, penalties, etc.;
expenses for holding an annual
shareholders' meetings;
According to Article 25
Law “On the organization of insurance business
V Russian Federation» basis
financial stability insurers
is that they have paid
authorized capital and insurance
reserves, as well as a reinsurance system.
“Article 25. Conditions
insurer
1. Guarantees
ensuring financial stability
insurers are economically
justified insurance rates; insurance
reserves sufficient to fulfill
obligations under insurance contracts,
coinsurance, reinsurance, mutual
insurance;
own funds;
reinsurance.
Insurance reserves and
the insurer's own funds must
be secured by assets corresponding
requirements for diversification, liquidity,
repayment and profitability.
2. Own
funds of insurers (except
mutual insurance companies,
providing insurance exclusively
of its members) include the statutory
capital, reserve capital, additional
capital, retained earnings.
3. Insurers
must have fully paid
authorized capital, the amount of which
must not be lower than the established
by this Law the minimum size
authorized capital.
Minimum size
authorized capital of the insurer
determined based on base size
its authorized capital equal to 30
millions of rubles.
4. correct
investment policy.
Annuity represents
is an insurance contract under which
annual rent is paid for
any period of the life of the insured
in exchange for paying a one-time premium
when signing the contract.
On practice
annual annuity can be paid and
quarterly and monthly, but
the amount is equal to the accrued amount for the year. More often
just to pay a one-time premium
are used insurance amounts, accumulated
for mixed life insurance or
life insurance.
Sometimes allowed
pay for the purchase of an annuity in installments.
Most often annuities
buy for retirement or for
payment for children's education (in favor of
third party).
For determining
insurance rates for annuities
do not use mortality tables
for the population as a whole, and for the population
having higher rates
health and, accordingly, more
low mortality rates.
1. immediate rent
is the annuity whose payment begins
immediately after payment of the entire insurance amount
contributions.
2. deferred annuity
– payment is deferred until a certain date
future date. Time interval from
the end of the contract and the start of payment,
waiting period. If during this period
the death of the policyholder occurs, then
Contributions are paid with or without interest
depending on the terms of insurance.
3. life annuity
for the rest of your life.
4. temporary rent
– paid from the due date
during the period stipulated
agreement.
5. rent prenumerando
(forward) – paid at the beginning of each
payments.
6. annuity postmerando
(after) – paid at the end of each
period established for the next
payments.
7. constant rent
– payment is made unchanged
size.
8. variable rent
– the size changes in
time.
Insurance risk
is the expected event
the occurrence of which is carried out
insurance. Event in question
as an insurance risk, must
have signs of probability and
the accident of its occurrence.
The insurer is obliged:
with insurance
in case of making an insurance payment
as established by contract or law
term. If insurance payment Not
produced in fixed time,
the insurer pays the policyholder
a fine of one percent of
amount of insurance payment for each day
delays;
reimburse costs,
made by the policyholder at
insured event to prevent
or reducing damage to the insured
property, if reimbursement of these expenses
provided for by the insurance rules.
In this case, the specified
expenses in excess of the amount
damage caused;
not to disclose
information about the policyholder and his property
position
Treaties
death insurances are divided into
for life and term insurance.
33. Compulsory personal insurance for passengers.
Insurance
passengers are a view personal insurance
from accidents, providing
payment of full or partial insurance
amounts in connection with the consequences of the accident
incident that happened to a passenger in
ways.
Insurance
passengers are carried out as mandatory,
and voluntarily.
Transit passengers
are considered insured, including
and during the transplant period, if they are
at the station. When left temporarily
the territory of a station, airport, etc.
insurance is terminated and
resumes only upon return
to the train station, airport, station.
Insurance premiums,
included in the ticket price are paid
passengers when purchasing a ticket. Size
payment depends on the type of transport and
travel distance. Individual categories
passengers are insured
free if they use the right
free travel. Is not subject to
insurance service personnel
vehicle.
38. Insurance for marriage
Can be
children from birth to 15 years are insured,
but contributions are paid before the due date
18 years. After turning 18 years old comes
waiting period (up to 25 years). Insurance
the case will be either marriage
or marriage. If that doesn't happen,
then when the insured turns 25 years old
can receive the amount due to him.
Policyholders
there may be citizens from 18 to 77 years old, but if
provided that before the expiration date
contract, the age of the insured will be
no more than 75 years old. No contracts are concluded
with disabled people. In case of death of the insured
the contract is terminated and the amount
those. the policyholder can receive the premiums,
by presenting it to the insurance company
passport and policy.
39. Sources of funds for compulsory social insurance budgets.
Property damage
(damage to property) – cost of repairs
for the restoration of movable and/or
real estate, other expenses,
caused by harm;
Personal injury (harm)
individuals) – treatment costs;
Moral damage
(compensation for suffering);
Claims indirectly
victims (for example, in case of death
breadwinner, funeral expenses, etc.).
The most common
worldwide type of liability insurance
is insurance
civil liability owners
Vehicle, which
in most countries (including Russia)
is mandatory.
40. Health insurance
Medical
insurance is a sub-sector of personal
insurance providing
formation of target funds through
contributions from enterprises, local authorities
authorities, citizens and their use for
health care financing
population.
Medical
insurance guarantees receipt
medical care, volume and character
which is determined by the terms of the contract
health insurance. Level
medical care depends
depending on the type of model (organization) of medicine
(free or paid).
IN legal terms
this sub-industry of personal insurance
is based on the Law on Medical
insurance of citizens in the Russian
Federation dated June 28, 1991 No. 1499-1. Law
defines legal, economic and
organizational foundations medical
insurance of the population of the Russian Federation.
Medical
insurance is carried out in two
types: mandatory and voluntary.
It is prohibited to invest insurance reserves in:
investments, not
provided for by these rules
for issuing loans,
except as provided by the rules
shares of commodity and
stock exchanges
intellectual
own
checks, privatization
securities
for wages
and taxes, penalties
44. Classification of liability insurance.
48. Rent insurance.
Insurance
temporary rent - a type
voluntary personal insurance,
when regular income, as opposed to
life insurance annuity, paid
to the insured person within
a certain number of years from the fund,
accumulated through insurance premiums.
The contract is concluded with a legal entity. And physical
persons
from 16 years and up to the age at which
the end of the annuity payment will not exceed 65
years. The contract period is from 1 year to 5 years.
The object of insurance is property.
interests related to pension
provision of the policyholder (insured).
In the Russian Federation, temporary rent is paid
under insurance contracts concluded
in accordance with insurance rules
The presence of insurance protection stimulates the development of market relations and business activity The investment climate in the country is undoubtedly improving. That is, any activity is accompanied by a certain risk that must be taken into account, and it is this need that insurance companies are designed to satisfy. Indeed, for a relatively small fee, the policyholder can be sure that if an insured event occurs, the insurer will compensate him for the damage.
The concept of “risk” was first formulated by law in relation to insurance legal relations.
In all developed countries, including in Russia, insurance is a strategically important sector of the economy, providing the overwhelming majority of investments in its development and freeing state budgets from expenses for compensation of losses from unforeseen events. The volume of reserves and the terms for which funds are placed turn insurance companies into powerful financial and lending institutions. Through their activities they concentrate enormous financial power in their hands.
In addition, an effective insurance market helps to increase the sustainability of the economy and ensures flexible management of individual and general risks and funds of individual citizens.
So the place insurance market due to two circumstances. First, there is an objective need for insurance protection, which in turn leads to the formation of an insurance market in the socio-economic system of society. Second, the monetary form of organization insurance fund providing insurance protection connects this market with the general financial market.
The place of the insurance market in the financial system is determined both by the role of various financial institutions in the financing of insurance protection, and by their importance as objects for allocating investment resources of insurance organizations and servicing insurance, investment and other types of activities.
Based on the foregoing, it can be stated that the need for insurance protection is universal; it covers all phases of social reproduction, all links of the socio-economic system of society, all economic entities and the entire population. The insurance market not only contributes to the development of social reproduction, but also actively influences through the insurance fund financial flows in the national economy.
According to the majority of domestic and foreign scientists, it has not been possible to fully form a stable, balanced insurance market that meets the modern needs of society.
Finance is an integral element social production at all levels of management. Without finance, it is impossible to ensure the individual and social circulation of production assets on an expanded basis, to regulate industry and territorial structure economy, stimulate the rapid implementation of scientific and technological achievements, satisfy other social needs. Such needs among business entities and the state determine the emergence of various types of financial relations. Financial relations develop between the state, on the one hand, and legal entities and individuals, on the other; between two legal entities; between legal entities, on the one hand, and individuals, on the other. Grouped by a specific characteristic financial relations form a financial system.
Financial system is a set of financial institutions, each of which contributes to the formation and use of appropriate monetary funds, And government agencies and institutions carrying out financial activities within their competence. Presence of various institutions within financial system due to the fact that finance covers the entire economy of the country and the social sphere.
The financial system of the Russian Federation includes:
1) state budget system, consisting of federal budget, budgets of the constituent entities of the Federation and local government budgets;
2) off-budget special funds;
3) state and Bank loan(all of the above institutions are classified as centralized finance, which are used to regulate the economy and social relations at the macro level);
4) insurance funds (property and personal);
5) finances of economic entities and industries related to decentralized finance, which are used to regulate and stimulate the economy and social relations at the micro level.
The system of financial bodies of the Russian Federation is headed by the Ministry of Finance of the Russian Federation, which is executive body ensuring the implementation of a unified financial, budgetary, tax and monetary policy and carrying out general management of the financial organization in the Russian Federation. Functions financial activities organs also perform government controlled of the Russian Federation and the constituent entities of the Russian Federation, within the framework of the spheres of management within their competence. At the same time, there is a system of bodies specifically created for financial management and control in this area - this is the system of financial and credit bodies (it includes the Ministry of Finance of the Russian Federation and the financial bodies of the constituent entities of the Russian Federation). The system of credit institutions is headed by central bank of the Russian Federation, which is a government body and carries out government leadership in area banking. The Accounts Chamber of the Russian Federation is a body financial control for the timely execution of all articles of the federal budget. Federal Treasury controls the conduct budget policy generally. The Ministry of the Russian Federation for Taxes and Duties is part of the system of central government bodies. The customs service is a source of replenishment of the state treasury, it is headed by the State Customs Committee.
The insurance market is part of the financial market, a place where people buy and sell insurance products.
Insurance is economic category, system economic relations, which include a set of forms and methods for the formation of target funds of funds and their use to compensate for damage caused by various unforeseen adverse events.
The social need to compensate for material losses determines the need to establish economic relations between people in connection with preventing, limiting and overcoming risks.
The place of the insurance market in the financial system is determined by two circumstances. On the one hand, there is an objective need for insurance protection. On the other hand, the monetary form of organizing the insurance fund to provide insurance protection connects this market with the general financial market.
The main task of Russia today is economic development. One of the main directions of such development is increasing the competitiveness of the Russian financial market, forming an international financial center, improving investment climate in the Russian Federation. In turn, improving the investment climate is impossible without developed financial markets, insurance and banking industries.
The Government of the Russian Federation has approved a strategy for the development of insurance activities in Russia until 2020 (Order No. 1293-r dated July 22, 2013). The document was developed by the Russian Ministry of Finance with the aim of comprehensively promoting the development of the insurance industry, in particular, turning it into a strategic significant sector the country's economy.
The forecast stipulated that the share of insurance in GDP would grow nonlinearly. So, at the end of 2014, this figure was supposed to increase by 42% to 1.7%, at the end of 2015 - by 53% to 2.6%, and at the end of 2020 by another 35% and reach 3.5%.
According to the document, the total volume of insurers' premiums in 2020 will reach 3.66 trillion rubles compared to 663.7 billion rubles in 2011. The share of life insurance in total revenues will increase from 5.2% to 14.9%. Share voluntary species insurance will increase to almost 90%. Share mandatory types will decrease from 16.7% in 2011 to 10.1%. The volume of insurance premiums per capita in 2020 will be 25,957 thousand rubles compared to 4,642 thousand rubles in 2011.
However, the situation is already developing according to a completely different scenario.
The growth rate of the insurance market in the 1st quarter of 2015 of 1.2% is a kind of absolute “anti-record”. It was worse only in the 1st quarter of 2009, when the decline in premiums was 1.5%. Premium collections at the expense of the population remained almost at the level of last year (the increase was only 0.6%).
For the first time in a long time, the ratio of insurance premiums to GDP fell significantly. Today it is 1.5% versus 1.7% a year ago. The share of insurance payments in total household expenditures on final consumption fell to 1.1% compared to 1.4% in the first quarter of last year. Obviously, the population and businesses began to save on insurance. Despite this, the total number of concluded contracts decreased slightly: in the first quarter of this year, 31 million insurance contracts were concluded, of which 28 million were with individuals. At the same time, in the first quarter of 2014, the total number of concluded contracts amounted to 32 million units, of which the same 28 million contracts were for the population. So the drop in the number of concluded contracts fell mainly on enterprises (the decrease in the number of concluded contracts was 22%), and not on the population.
In the second quarter of 2015, the crisis in the insurance market continued, despite an increase in the total volume of insurance premiums, which increased by 3.1% to RUB 252 billion. against 244 billion rubles. in the second quarter of last year. At the same time, the ratio of insurance premiums to GDP decreased to 1.39% versus 1.41% a year earlier.
The decline in the insurance premium to GDP ratio continues for the second quarter in a row, which has not happened since 2011. Then this phenomenon was explained by the rapid growth of the economy after the crisis of 2009-2010, during which production increased, outpacing the insurance market. Now we have the insurance market lagging behind the economy as a whole against the backdrop of a fairly serious slowdown in GDP, which decreased by 4.6% in the second quarter of this year. The relative reduction in insurance payments of the population and enterprises is a consequence of the fall in solvency, the curtailment of investment projects business, as well as the refusal of the population to make large purchases in the face of uncertainty about future economic conditions.
Once again, the motor vehicle insurance market demonstrated disappointing performance. Collections for this type of insurance fell by 15.6% compared to the second quarter of 2014, the share of expenses for comprehensive insurance policies in total household expenditures on final consumption decreased to 0.37% against 0.49% a year earlier, the ratio of comprehensive insurance premiums to GDP fell to 0.26% from 0.32% last year.
The decline in the corporate property insurance segment continued: premiums in this market fell by 5.6% in the second quarter (a 14% decline was recorded in the first quarter of 2015). Here we see the consequences of a reduction in business investment activity: according to the results of the first half of the year, investments in fixed capital decreased in Russia by 5.5%.
On the other hand, a number of segments of the insurance market showed positive dynamics, which saved the market from a general drop in fees. First of all, we are talking about the MTPL market, which has grown significantly due to the increase in tariffs that took place in the first half of 2015. Premium collections in this market grew 49.7% compared to the second quarter of 2014, far outpacing the overall market growth of 3.1%.
The second segment to support the market was life insurance, where collections rose 14.5% in the second quarter. The fact is that the crisis significantly influenced the increase in savings activity of Russians: according to the results of the second quarter, the total volume of household deposits in Russian banks increased by 16% compared to the same period last year. Accordingly, fees for life insurance of bank borrowers, as well as for classic endowment life insurance, increased.
Another segment of the insurance market where the growth of premiums exceeded the average market level is insurance of citizens’ real estate. In the second quarter of 2015, this market grew by 16.7%. Its development is mainly associated with the activity of a number of large insurers, who have made this area a priority for expanding operations in the insurance market.
Some progress is noticeable in the segment of voluntary health insurance at the expense of citizens. Collections here reached 5.5 billion rubles, which is 28.6% more than similar period last year. Perhaps the growth of operations in this market is associated with reform of the system medical care population: reduction in volumes free services and the complication of access to them forces the population to more actively use the services of paid medicine, paid for through VHI.
If we talk about the prospects for the development of the insurance market, they cannot be considered too gloomy, despite the disappointing results of the 1st and 2nd quarters of this year. IN Lately showing some encouraging signs of recovery economic growth, which should appear more clearly in the second half of this year. These include an increase in sales of new cars compared to spring indicators, an increase in consumer activity of the population, and stabilization of industrial indicators.
Bibliography
1. Nechaev A.S. Process management of a Russian industrial enterprise // Current issues economic sciences. 2009. No. 5-5. pp. 153-158.
2. The need for effective risk management at Russian enterprises Obolkin N.A., Konyukhov V.Yu. Bulletin of Irkutsk State Technical University. 2009. No. 1 (37). pp. 140-141.
3. Analysis of the development of the economy of post-Soviet Russia Starkov R.F. Bulletin of Irkutsk State Technical University. 2013. No. 12 (83). pp. 362-368.
4. Risk management in the process of organizing production Shchadov I.M., Fedotov K.V., Milova Yu.Yu. Economics and entrepreneurship. 2014. No. 12-4 (53-4). pp. 765-769.
5. Methods of organizing production in conditions of economic risks Bunkovsky V.I., Lukyanchikova N.P., Chernyshenko M.S. monograph / Irkutsk State Technical University. Irkutsk, 2014.
6. Organizational, economic and financial mechanisms development of geo-economic REGIONS Rogov V.Yu. News of the Irkutsk State Economic Academy. 2003. No. 1. P. 148-160.
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Short description
The place of the insurance market in the financial system in general and in financial market in particular is determined by two circumstances. On the one hand, there is an objective need for insurance protection, which leads to the emergence of an economic phenomenon - the insurance market. On the other hand, the monetary form of organizing the insurance fund to provide insurance protection connects this market with the general financial market.
Attached files: 1 file
Place of the insurance market in the financial system
The place of the insurance market in the financial system in general and in the financial market in particular is determined by two circumstances. On the one hand, there is an objective need for insurance protection, which leads to the emergence of an economic phenomenon - the insurance market. On the other hand, the monetary form of organizing the insurance fund to provide insurance protection connects this market with the general financial market.
Rice. 1 The place of the insurance market in the financial system
In countries with a market economy, insurance plays the role of one of the strategic sectors of the economy, because:
reduces the burden on the expenditure side of the budget; the insurance system compensates for damage caused to the state, enterprises, and citizens as a result of natural and man-made disasters and incidents (according to the Russian Ministry of Emergency Situations, such damage in 1996 amounted to 80 billion rubles, in 1997 - more than 300 billion rubles), exempting the state from payments , creates the opportunity to direct freed money to social and other important government programs;
promotes socio-economic stability in society, as an integral element of the system social protection population through the implementation of socially important types of insurance (additional pension insurance, long-term life insurance, motor vehicle liability insurance, etc.);
has a significant impact on strengthening the financial system of the state, since, according to internationally recognized standards, it is the most flexible, permanent and reliable internal source investments in the economy (in the United States, about 30% of long-term investments in the economy come from insurance organizations that provide long-term life insurance).
The insurance market plays a significant role for the development and efficient functioning of the financial sector national economy, since insurance companies are financial intermediaries that reduce the transaction costs associated with the movement of funds from savers to borrowers by accumulating significant funds from multiple premium payers.
Insurance market structure
The insurance market is a complex integrated system. This is the sphere of commodity-money relations regarding the purchase and sale of insurance services. The insurance service is expressed in the protection of property interests of individuals and legal entities upon the occurrence of an insured event. The use value of an insurance service lies in the provision of insurance protection, the exchange value lies in the insurance tariff.
The structure of the insurance market is formed from:
- insurance organizations;
- policyholders;
- insurance products;
- insurance intermediaries;
- professional assessors of insurance risks and losses;
- associations of insurers;
- associations of insurers;
- systems government regulation insurance market.
Insurance organizations are the institutional basis of the insurance market, a specific form of organization of the insurer's insurance fund. The insurance company carries out the conclusion of insurance contracts and their servicing. Insurance organizations are structured according to affiliation, the nature of the operations performed, and service area.
Insurance organizations are divided into: joint-stock, private, public law and mutual insurance companies.
The shareholder form of insurance companies dominates in developed markets.
A joint stock insurance company is a non-state organizational form in which it acts as an insurer private capital, designed as Joint-Stock Company. The authorized capital of a joint-stock insurance company is formed from shares and other securities, which allows, with limited funds, to significantly increase its financial potential.
Private insurance companies are owned by one owner or his family.
In state insurance, the state acts as the insurer. The organization of state insurance companies is carried out through their establishment by the state or the nationalization of joint-stock insurance companies and the conversion of their property into state ownership.
Government insurance organizations are non-profit structures whose activities are based on subsidies. Government insurance organizations specialize in unemployment insurance and compensation for workers and employees who have temporarily lost their jobs.
A mutual insurance company is a special non-state organizational form that expresses an agreement between a group of individuals or legal entities to compensate each other for future possible losses in certain shares in accordance with established insurance rules. Mutual insurance is a non-profit form of organization of an insurance fund that provides insurance protection for the property interests of members of its society.
In developed countries, the share of the mutual insurance market reaches 50% of the entire insurance market.
The product of the insurance market is an insurance product. The promotion and sale of the product in the insurance market is carried out by insurance intermediaries.
Specialized insurance companies produce certain types of insurance, for example, life insurance, motor insurance, etc. This type of company also includes reinsurance companies that accept part of the insured risk from insurers for a certain fee. The purpose of reinsurance is to create a balanced portfolio of reinsurance contracts, ensure financial stability and profitability of insurance operations.
Universal insurance organizations offer a wide range of insurance services. Since the purchase and sale of insurance products is carried out in the insurance market, both the promotion of insurance agents in the market and their implementation are necessary. These operations are carried out by insurance intermediaries: insurance agents and insurance brokers.
Insurance agents - individuals or legal entities, acting on behalf of the insurer and on his behalf in accordance with the powers presented.
Insurance brokers are independent individuals or legal entities licensed to conduct insurance intermediary operations on their own behalf on the basis of instructions from the policyholder or insurer. The insurance broker is not a party to the insurance contract. His services are intermediary in the execution of an insurance contract, for which he charges an agreed percentage.
The functioning of the insurance market requires the presence of professional risk and loss assessors - surveyors and adjusters.
Surveyors are inspectors or agents of an insurance organization who inspect the insured property. Based on the surveyor's conclusion, the insurance company decides to conclude an insurance contract.
Adjusters are authorized persons or companies involved in establishing the causes, nature and extent of losses.
State regulation of the insurance market can be presented as follows:
Rice. 2 System of state regulation of the insurance market
Figure 3. Factors contributing to the growth of the insurance market in 2012.
Problems on p. Market.
The main systemic problems of the Russian insurance market include:
- the existing level of solvency and demand of citizens and legal entities for insurance services;
- the incomplete use of the insurance mechanism, and, in particular, the underdevelopment of compulsory insurance, without which the market cannot actively develop voluntary insurance;
- relatively weak development of insurance operations (depending on general condition economy, improving legislation in terms of streamlining compulsory types of insurance, developing long-term life insurance, pension and mutual insurance, taxation) restrains the increase own funds and accumulation of insurance reserves from insurance companies;
- lack of a system for involving the population’s funds in the investment process through the conclusion of long-term life insurance and pension contracts;
- lack of reliable instruments for long-term placement of insurance reserves;
- restriction of competition in certain market sectors and territories, in particular, through the creation of affiliated and authorized insurance organizations;
- lack of a system of measures to improve legislation on taxes and fees in the insurance market;
- low level capitalization of insurance organizations (limited financial capacity of the market), as well as the underdevelopment of the national reinsurance market, leading to the impossibility of insuring large risks without the participation of foreign reinsurance companies and the unjustified outflow of significant amounts of insurance premiums abroad;
- informational closedness of the insurance market, which creates problems for potential policyholders in choosing sustainable insurance organizations;
- imperfection of legal and organizational support for state insurance supervision.
Content
Introduction
I. The concept of the insurance market
1.1. Concept of insurance and insurance market
1.2. Subjects and infrastructure of the insurance market
1.3. The place and role of the insurance market in the financial system
II. Insurance market of Ukraine
2.1. Development of the Ukrainian insurance market
2.2. Conditions of the Ukrainian insurance market at this stage
Conclusion
List of information sources
Introduction
Carrying out activities in market conditions is accompanied by various types of risks. Uncertainty is one of the main components of the market situation in every market of any state - developed or developing. Uncertainty includes the entire range of possible unforeseen situations and risks. At the same time, any economic entity takes risks already at the moment of organizing his own business. Therefore, risks are an integral part of the activities of any enterprise.
In such a situation, practically the only way to protect against risks and minimize their consequences is insurance. In this regard, the nature and functions of insurance in Ukraine are fundamentally changing, its importance is growing as an effective, rational, economical and accessible way protection of property interests of business entities, producers of goods and services, as well as citizens.
The insurance services market is one of the necessary elements of the market infrastructure, closely related to the market for means of production, consumer goods, capital and securities markets, labor and work force. In countries with developed economies, the insurance business has a wide scope and provides entrepreneurs with reliable protection of their interests from adverse consequences various types of man-made accidents, financial risks, criminogenic factors, natural and other disasters.
Insurance services occupy an important position in the system of risk management and minimization. At the same time, the insurance market, ensuring competition among insurers, provides policyholders with the opportunity to choose the most suitable and favorable conditions insurance for each individual insured event and in each individual situation.
Under conditions of domination state form property and the administrative-command management system in our country, the potential of the insurance institution could not be fully revealed; the scope of its application was very limited. The insurance business in its present significance was not and could not be, since there was no basis - private entrepreneurship and independence of business entities.
Research into the fundamentals of the formation and operation of the insurance market is extremely important for our country, since right now domestic market is at this stage of development. Studying world experience in this aspect is necessary to prevent the repetition of mistakes, as well as to gain the opportunity to create a more advanced insurance system in our country.
Thus, the purpose of this course work is to consider the insurance market as such, its formation and development in Ukraine.
The objectives of the course work are:
· disclosure of the concept of the insurance market, its subjects and infrastructure;
· consideration of the formation and development of the Ukrainian insurance market and its current situation.
I.Insurance market concept
1.1. Concept of insurance and insurance market
Insurance is an integral part of finance, but insurance relations have a number of features:
* monetary relations in insurance are associated with the possibility of insured events causing damage;
* during insurance, the damage caused is distributed among the insurance participants;
* when insuring, damage is redistributed between territories and over time;
* insurance is characterized by the return of funds contributed to the insurance fund.
Based on the features listed above, the following definition can be given: insurance - this is a set of economic relations between its participants regarding the formation of an insurance fund and its use for damage compensation.
Insurance activity or insurance business is the field of activity of insurers in insurance, reinsurance, mutual insurance, as well as the activities of insurance brokers, insurance actuaries in providing services related to insurance and reinsurance.
The insurance market is a certain area of financial relations where the object of purchase and sale is insurance protection and where supply and demand for it is formed. The insurance market is a special socio-economic structure that unites various entities that pursue their specific interests and perform certain functions.
Insurance market is a market where the object of purchase and sale is an insurance service. In the insurance market, as in any market, there are sellers, buyers and intermediaries.
The insurance market operates inextricably in connection with other components of the financial and monetary market. It is directly related to the credit market, the market banking services etc., which ensures its stability and normal functioning in accordance with its goals and objectives. The main purpose of the functioning of the financial market is the accumulation and redistribution of policyholders' funds to reduce and reduce the consequences of risks in order to make a profit.
1.2. Subjects and infrastructure of the insurance market
We will begin our study of the insurance market by considering its subjects - participants in insurance relations. It is obvious that in addition to buyers of insurance services, there are also different types sellers. Insurance organizations, mutual insurance companies, insurance brokers and insurance actuaries are subjects of the insurance business. The law defines the following participants in insurance relations:
· policyholders, insured persons, beneficiaries;
· insurance organizations;
· mutual insurance companies;
· insurance agents;
· insurance brokers;
· insurance actuaries;
· insurance supervisory authority;
· associations of insurance business entities, including self-regulatory organizations.
Policyholder -
This is a legal or legally capable individual who has entered into insurance contracts with insurers or is an insured by force of law.
The second main subject of the insurance market is the insurer, a legal entity, a separate economic entity, which was created specifically for the provision of insurance, coinsurance, reinsurance, mutual insurance and has received a license. Insurers perform the following main functions:
- carry out risk assessment;
- receive insurance premiums;
- determine the amount of loss or damage;
- form insurance reserves;
- invest assets;
- make insurance payments.
The following types of insurers are distinguished: insurance companies (societies), reinsurance companies (societies), mutual insurance companies.
Insurance companies (organizations) -commercial organizations, specializing in insurance operations.
Reinsurance companies (companies) carry out activities related only to reinsurance, that is, the protection by one insurer (reinsurer) of the property interests of another insurer (reinsurer), associated with the latter’s acceptance of obligations under the insurance contract for insurance payments.
Reinsurance companies buy and sell non- insurance service, and the risk associated with the implementation of insurance services, ensuring the reliability and stability of the entire insurance system. For example, Insurance Company A has insured a large risk that makes its portfolio too risky. In this case, reinsurance is the best method to reduce this risk.
The classification of insurance companies by characteristic features is given in Table 1.
Table 1 - Classifications of insurance companies
| Signs of classification |
Groups of insurance companies |
|
| Institutional division |
- joint stock; - shares; -state |
|
| Territorial division |
-local; -national |
|
| Industry division |
- carrying out insurance operations in the field of personal insurance ( endowment insurance life and personal risk insurance); - carrying out insurance operations in the region property insurance different types; - carrying out insurance operations in the field of property insurance and personal risk insurance |
|
| Species division |
- carrying out activities in the field of compulsory insurance; - carrying out activities in the field of voluntary insurance |
In the case of a mutual insurance company, the insurance fund is formed on the basis of the centralization of funds by the participants mutual fund, who simultaneously act as both policyholders and insurers. Consequently, the participants of a mutual insurance company own all its assets.
Insurance intermediaries. Most insurance transactions in the world are carried out through insurance intermediaries, among which are:
- insurance brokers,
- insurance agents.
Insurance agents - permanently residing in the territory of the state and carrying out their activities on the basis of a civil law contract individuals or legal entities that represent the insurer in relations with the policyholder and act on behalf of the insurer and on his behalf in accordance with the powers granted.
Insurance brokers - permanently residing in the territory of the state and registered in accordance with the procedure established by law as individual entrepreneurs individuals or legal entities who act in the interests of the policyholder (reinsurer) or the insurer (reinsurer) and carry out activities to provide services related to the conclusion of insurance (reinsurance) agreements between the insurer (reinsurer) and the policyholder (reinsurer), as well as with the execution the said agreements. When providing services related to the conclusion of these contracts, the insurance broker does not have the right to simultaneously act in the interests of the policyholder and the insurer.
Insurance brokers have the right to carry out other activities related to insurance, not prohibited by law, with the exception of activities as insurance agent, insurer, reinsurer. Thus, insurance brokers are not entitled to carry out activities unrelated to insurance.
The activities of insurance agents and insurance brokers to provide services related to the conclusion and execution of insurance contracts (except for reinsurance contracts) with foreign insurance organizations or foreign insurance brokers on the territory of the country are not permitted. To conclude reinsurance agreements with foreign insurance organizations, insurers have the right to enter into agreements with foreign insurance brokers.
In table 2 we present the main characteristics of the activities of the two main types of insurance intermediaries, such as an insurance agent and an insurance broker. The main differences between them are in whose name the activity is carried out, what type of remuneration is, the number of partner insurers, the need to obtain a license and restrictions on activity.
Table 2 - Main characteristics of insurance intermediaries
| Characteristics |
Insurance agent |
Insurance Broker |
|
| On whose behalf carries out activity |
On behalf of the insurer and on his behalf |
On its own behalf and on behalf of the policyholder or insurer |
|
| Reward type and its source |
Commission remuneration the insurer pays |
Commission remuneration the insurer pays or policyholder |
|
| Dependence on a specific insurer |
It usually works with one insurer |
Works with many insurers |
|
| Characteristics |
Insurance agent |
Insurance Broker |
|
| Necessity licensing |
Agents' activities not licensed |
The activities of insurance brokers are licensed |
|
| Restrictions on subject of activity |
Insurance is not an exclusive activity |
Insurance brokers are not entitled to carry out activities unrelated to insurance. |
Associations of insurers can have an economic orientation: insurance and reinsurance pools created to ensure the financial stability of insurance operations, as well as a professional one: unions, associations that are created for the purpose of coordinating their actions, representing and protecting the interests of their participants.
In the insurance market of any state, there are certain relationships between its participants. This is determined not only by cooperation in solving certain problems, but also by economic necessity and the presence of risks. Market participants strive for cooperation precisely in order to reduce the risks of certain types of insurance or insured events.
Partners in the field of insurance for each specific insurance organization are other insurance participants, as well as other insurance organizations (Fig. 1).
Figure 1. Insurance Partners
Let us briefly describe the elements of the internal insurance market environment.
Types of insurance services - a range of insurance products offered to the market, which are characterized by a certain set of insurance conditions, including a list of insurance subjects, a set of insurance risks, requirements for establishing the level of insurance liability and insurance premium, the procedure for concluding an insurance contract and the obligations of the parties for its execution.
Insurance rates represent a reasonable level that allows us to determine the cost of insurance services. Insurance involves empirical processes, so special procedures are required to determine insurance rates - actuarial calculations . The system for selling insurance services will include stages, methods, subjects of sale, and the procedure for processing insurance documents. .
The infrastructure of an insurance organization represents the services and structures of the insurance organization that serve the production process: economic planning, financial, marketing, technical, expert. Among these services, the most specific is the expert service, which includes various specialists depending on the specialization of the insurance company:
- emergency commissioner. Establishes the causes, nature and extent of losses for insured ships, cargo, as well as other types of property, issues an emergency certificate;
- surveyor. An inspector or agent of the insurer who inspects property accepted for insurance. Based on the surveyor’s decision, the issue of concluding or not concluding an insurance contract can be decided;
- medical expert. Conducts medical examinations of the quality of treatment of the insured, checks registers for payment of medical institutions;
- dispatcher. A specialist in the field of international maritime law, preparing calculations for the distribution of expenses for general average between the ship, cargo and freight, i.e. dispashu;
- actuary. A specialist who calculates insurance rates and insurance reserves.
It should be noted that these experts are not necessarily employees of the insurance organization. Often these are independent, independent agencies. Thus, qualification societies, specialized organizations for fire safety, labor protection, safety precautions, etc. can act as a surveyor. The dispatcher is also most often an independent person. In practice, abroad he is usually invited by the shipowner; in Ukraine, similar specialists can be found in the Chamber of Commerce and Industry.
1.3. The place and role of the insurance market in the financial system
The place of the insurance market is determined by two circumstances. On the one hand, there is an objective need for insurance protection, which leads to the formation of an insurance market in the socio-economic system of society. On the other hand, the monetary form of organizing the insurance fund for providing insurance protection connects this market with the general financial market.The place of the insurance market in the financial system is determined both by the role of various financial institutions in financing insurance protection, and by their importance as objects for allocating investment resources of insurance organizations and servicing insurance, investment and other types of activities (Fig. 2).
The universality of insurance determines the direct connection of the insurance market with the finances of enterprises, finances of the population, banking system, state budget and other financial institutions within which insurance relations are implemented.
In such relationships, the relevant financial institutions act as policyholders and consumers of insurance products. Specific relationships develop between the insurance market and the state budget and government off-budget funds, which is associated with the organization of compulsory insurance.
Figure 2. Place of the insurance market in the financial system.
The insurance market has stable financial relations with the securities market, the banking system, foreign exchange market, state and regional finances, where insurance organizations place insurance reserves and other investment resources.
The functioning of the insurance market takes place within the financial system, both on a partnership basis and in conditions of competition. This concerns the competition between various financial institutions for free cash population and economic entities. If the insurance market, for example, offers life insurance products, then banks offer deposits, stock market- securities, etc.
The insurance market performs a number of interrelated functions: compensation (refund), savings, distribution, precautionary and investment:
1) The main function of the insurance market is the compensation function, thanks to which the insurance institution exists. The content of the function is expressed in providing insurance protection to legal entities and individuals in the form of compensation for damage in the event of the occurrence of adverse events, which was the object of insurance.
2) The accumulative or savings function is provided by life insurance and allows you to accumulate a predetermined insured amount against the concluded insurance contract.
3) The distribution function of the insurance market implements the insurance protection mechanism. The essence of the function is expressed in the formation and intended use insurance fund. The formation of the insurance fund is implemented in the system of insurance reserves, which provide a guarantee of insurance payments and stability of insurance.
4) The preventive function of the insurance market is not directly related to the implementation of insurance activities. This function works to prevent an insured event and reduce damage. The implementation of the preventive function is ensured by financing measures to prevent or reduce the negative consequences of accidents and natural Disasters. Appropriate funding is provided from the preventive measures fund. The implementation of preventive functions helps to increase the financial stability of insurers and acts important factor ensuring the uninterrupted process of social reproduction.
5) The investment function of the insurance market is implemented through temporary placement free funds in securities, bank deposits, real estate, etc. With the development of the insurance market, the role investment function increases. Noteworthy are a number of foreign economists who define fears, etc..................