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Life insurance market of ukraine

Author(s) Prokopchuk O.T., Candidate of Economics, , Uman National University of Horticulture, Ukraine
Ulyanych Y.V., Candidate of Economics, , Uman National University of Horticulture, Ukraine
Bondarenko N.V., , , Uman National University of Horticulture
year 2023 issue Issue number 102. Part 2
pages 243-250 index UDK 336
DOI 10.32782/2415-8240-2023-102-2-243-250 (Link)
Abstract The article considers the concept of insurance and life insurance in accordance with the legal framework. Life insurance is a type of personal insurance that provides for the obligation of the insurer to make an insurance payment in accordance with the insurance contract in the event of the death of the insured person, as well as, if it is provided for in the insurance contract, in the event that the insured person survives until the expiration of the insurance contract and the insured reaches a person of the age defined by the contract. The main functions (risk, creation and use of insurance reserves, preventive, investment, savings, income generation, credit, preservation) and forms of life insurance (capital insurance, annuity insurance) are considered. The factors determining the low level of demand for life insurance services are analyzed: Russian armed aggression against Ukraine, imperfect legal framework, insurance fraud, insufficient level of development of the insurance market, closedness, low level of trust in the insurance market and insurance services as such, financial –economic factors: instability of the national economy, currency, inflation, low income. The modern development of the life insurance market in Ukraine is analyzed. Despite the full-scale invasion of the Russian Federation on the territory of Ukraine, the life insurance market continued its work and during 2022 demonstrated the recovery of its activity indicators. The volumes of the life insurance market for the first half of 2022 have recovered: both in insurance premiums (-21 % compared to the beginning of the war (-57 %), and in insurance payments, where there is an increase in the volumes of the same period of the previous year (-52 % and -65 % vs. +6 % and +10 % in insurance payouts and redemption payouts, respectively.) During martial law, life insurance companies accumulate liquidity while simultaneously investing in war bonds. The top 5 life insurers on the insurance market and the main directions of promoting the development of life insurance in Ukraine are highlighted, such as: •Ukraine's victory over Russia and the cessation of armed aggression stabilization of the financial situation of all subjects of the economy by supporting domestic business; • raising the standard of living and income of the population; • withdrawal of unstable and unreliable insurance companies from the market (this is why the "split" law was introduced); • activation of the state's role in maintaining a competitive environment in the market of insurance services; • modernization of the industry structure and infrastructure of the insurance services market of Ukraine in accordance with global requirements; • dissemination among citizens of the opinion that life and property insurance is mandatory.
Key words life insurance, insurance functions, insurance market, social protection of the population, risk, insurance services
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