CURRENT TRENDS IN THE DEVELOPMENT OF THE INSURANCE MARKET AND FACTORS FOR ENSURING ITS FINANCIAL SECURITY

Abstract

It has long been known that the socio-economic stability of the country and the financial security of mem-bers of society depend on the state of functioning and development of the insurance market. However, the insurance market itself needs stable development, adequate response to challenges and threats, intensified by military aggression, to ensure its proper financial security. The article examines current trends in the development of the insurance market in Ukraine under martial law. The dynamics of changes in the number of insurance service providers in the risk insur-ance and life insurance sectors, the volume of insurance premiums attracted, accumulated insurance reserves, insurance payments made, etc. during 2019-2023 are revealed. Positive trends in the development of the insurance market are studied, which consist in the gradual accumulation of insurance assets, an increase in insurance reserves, and a decrease in the level of reinsurance. Among the negative trends in the market as a whole, the slowdown in the pace of economic activity growth, a decrease in the volume of paid-in authorized capital, an increase in the size and level of insurance payments as a response to new risks caused by the war are noted. It is concluded that the financial security of the insurance market is affected by the same factors that determine its positive development. This is an increase in the number of insurance service providers and clients of insurance companies, expansion of economic activity in terms of volumes and types of insurance, ensuring proper financial reliability and solvency of insurers, implementation of effec-tive state regulation and supervision. Based on the analysis of indicators of the size of the insurance market, insurance penetration, the share of reinsurance and long-term types of insurance, it was concluded that the financial security of the domestic insurance market needs to be strengthened. The prerequisites for this should be a stable socio-economic situation, the development of new insurance products by insurance companies to attract new clients and the expansion of insurance activities as a response to new risks caused by the war, the implementation by the state of an effective in-surance development policy, the implementation of insurance protection standards developed by European and world experience in the practice of domestic market operators.