Formation of the insurance market in Ukraine: realities and problems

Insurance is one of the important financial segments of the national economy, where financial and investment resources are formed, accumulated, redistributed and used, and there is an interaction between producers and consumers of insurance products.The financial condition of most insurers is quite low and does not provide them with competitive advantages even in the domestic insurance market. The decisive factor in the opacity of insurance processes is determined by the insurers of circuit transactions. Public reporting of insurers does not contribute to an objective diagnosis of their financial condition, stability, and often inaccuracies and errors.However, the fall in the relative indicators of insurance indemnity in the conditions of a steady rise in the size of insurance premiums convinces that insurance has not yet fully realized its function of providing real insurance protection and covering the existing risks of economic entities.Carrying out structural restructuring of the economy and economic reforms necessitate further development of the insurance market of Ukraine as part of the financial market. Insurance implements the state policy of socio-economic protection of the population, as well as generates significant investment resources. Foreign experience shows that insurance companies have a special place in ensuring the investment process, the possibility of accumulating financial resources, the transformation of the insurance market into a powerful source of investment resources.The main reasons that threaten insurers and, consequently, the financial security of the state, are a significant narrowing of the life insurance segment, a slight increase in insurance capital, slow growth of insurance reserves, slow increase in financial stability, there are structural transformations to expand voluntary property insurance. The development of the insurance sector and increase the confidence of economic entities in insurance institutions depends on the insurance policy, method and regulatory levers of the state.It should be noted that the domestic insurance market is considered to be a fairly closed and non-transparent market. This is due to the extremely heterogeneous construction of the market environment, low level of transparency of the insurance market, the lack of detailed objective data on the functioning of a particular insurer and the structure of its financial capital.The main problems hindering the development of the insurance market in Ukraine are considered. The article pays attention to significant information secrecy, political and financial instability, lack of insurance professionals.Currently, the domestic insurance system is slowly developing due to formal schemes, mainly in an extensive format, and is accompanied by various problems of financial, information-analytical, organizational and institutional-infrastructural nature. However, there are problems of increasing the quality of insurance products, combining and harmonizing the interests of participants in the insurance system. The decisive problems of Ukrainian insurers in the transition to new market conditions was the need to adapt to a tough competitive environment.