Improving the assessment of the non-life insurance market development level in Ukraine

Authors

DOI:

https://doi.org/10.15587/2312-8372.2017.98389

Keywords:

non-life insurance market, financial security, portfolio insurance, insurance profitability

Abstract

Nowadays the non-life insurance market in Ukraine is on the stage of development. Therefore, it is necessary to assess the level of development of the non-life insurance market in Ukraine and to propose recommendations for improvement the activity of the non-life insurance companies. The article deals with the peculiarities of the insurer companies in Ukraine that carry out insurance other, than life-insurance. It was analyzed the national non-life insurance market during 2005-2015 that helped to determine the main problems of its development. For assessment of the non-life insurance market development level there were selected the indexes of amount of insurance companies, the amount of the insurance contracts and the volume of responsibility after them, the middle amount covered on one contract of insurance, the volume of gross and clean insurance bonuses, the level of diversification of insurance brief-cases of insurers, the strength of the insurance market, profitability of insurance and investment activity of insurance companies. Using correlation analysis it was eliminated the multicollinearity between selected parameters. It was calculated the integral indicator of the non-life insurance market development level in Ukraine using the method of taxonomy. On the basis of the scale authors conclude that during the analyzed period (2008-2015) the integral indicator of the insurance market development was not high. Only in 2010 and 2012 the insurance market development in Ukraine has reached average level. At all other times the activity of the insurance market was low.

Author Biographies

Nataliya Opeshko, Simon Kuznets Kharkiv National University of Economics, Nauky ave., 9-A, Kharkiv, Ukraine, 61166

PhD, Lecturer

Department of Financial Services Management

Daria Hontar, Simon Kuznets Kharkiv National University of Economics, Nauky ave., 9-A, Kharkiv, Ukraine, 61166

PhD, Lecturer

Department of Banking

Viktoriia Kovalchuk, Simon Kuznets Kharkiv National University of Economics, Nauky ave., 9-A, Kharkiv, Ukraine, 61166

PhD, Lecturer

Department of Finance

References

  1. Konsolidovani zvitni dani. National Commission for Regulation of Financial Services Markets. Available: https://nfp.gov.ua/content/konsolidovani-zvitni-dani.html
  2. European insurance outlook. Ernst & Young Global. Available: http://www.ey.com/Publication/vwLUAssets/EY-2016-european-insurance-outlook/$FILE/EY-2016-european-insurance-outlook.pdf
  3. Insurance Europe’s Annual Report 2015–2016. Insurance Europe. Available: https://www.insuranceeurope.eu/sites/default/files/attachments/Annual%20Report%202015-2016.pdf
  4. Annual Report 2015. EIOPA. Available: https://eiopa.europa.eu/Publications/Reports/EIOPA%20Annual%20Report%202015.pdf#search=EIOPA%20annual%20report
  5. The Insurance Industry’s Contribution to Community Development. Insurance Information Institute. Available: http://www.iii.org/sites/default/files/docs/pdf/impact_win16.pdf
  6. Achkasova, S. (2015). The governmental regulation of the insurance market in the European integration processes. Economic Annals-XXI, 7-8 (2), 49–52.
  7. Vasechko, L. (2016). Current issues of insurance market of Ukraine. Ekonomichnyi prostir, 109, 146–154.
  8. Kozmenko, O. V. (2008). Strakhovyi rynok Ukrainy u konteksti staloho rozvytku. Sumy: DVNZ «UABS NBU», 350.
  9. Plysa, V. Y. (2011). The strategy of post-crisis development of insurance market in Ukraine. Financial Space, 3 (3), 90–96.
  10. Yukhumenko, V. (2016). Insurance industry: world trends and prospects in Ukraine. Investytsiyi: praktyka ta dosvid, 3, 44–48.
  11. Alhassan, A. L., Biekpe, N. (2016). Insurance market development and economic growth. International Journal of Social Economics, 43 (3), 321–339. doi:10.1108/ijse-09-2014-0182
  12. Outreville, J. F. (2012). The Relationship Between Insurance and Economic Development: 85 Empirical Papers for a Review of the Literature. Risk Management and Insurance Review, 16 (1), 71–122. doi:10.1111/j.1540-6296.2012.01219.x
  13. Chang, C.-H., Lee, C.-C. (2011). Non-Linearity Between Life Insurance and Economic Development: A Revisited Approach. The Geneva Risk and Insurance Review, 37 (2), 223–257. doi:10.1057/grir.2011.10
  14. Kozarevic, S., Peressin, L., Valentinus, G. (2013). Efficiency of the transition of the insurance markets in south-eastern European post-communist countries. South-Eastern Europe Journal of Economics, 2, 139–164.
  15. Zyka, E., Myftaraj, E. (2014). Factors affecting the insurance sector development: Evidence from Albania. The Romanian Economic Journal, 51, 171–188.
  16. Pro zatverdzhennia Metodychnykh rekomendatsii shchodo rozrakhunku rivnia ekonomichnoi bezpeky Ukrainy. Decree of the Ministry of Economic Development and Trade of Ukraine from 29.10.2013 № 1277. Available: http://cct.com.ua/2013/29.10.2013_1277.htm
  17. Hurianova, L. S., Serhiienko, O. A., Nikiforova, O. V. et al. (2012). Metodychni rekomendatsii do vykonannia laboratornykh robit z navchalnoi dystsypliny «Matematychni metody i modeli doslidzhennia ekonomichnykh protsesiv». Kharkiv: KhNEU, 64.
  18. Metod Fibonachchi. Available: http://math.semestr.ru/optim/fibonacci.php

Downloads

Published

2017-03-30

How to Cite

Opeshko, N., Hontar, D., & Kovalchuk, V. (2017). Improving the assessment of the non-life insurance market development level in Ukraine. Technology Audit and Production Reserves, 2(5(34), 45–50. https://doi.org/10.15587/2312-8372.2017.98389

Issue

Section

Problems of Macroeconomics and Socio-Economic Development: Original Research