Insurance market. Theoretical foundations of the functioning of the insurance market, the economic essence of the insurance market Insurance market in the financial system

Insurance emerged and developed as a conscious objective need of a person and society for protection from accidental hazards. The need for insurance coverage 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 on financial flows in the national economy.
The place of the insurance market in the financial system is shown in Fig. 8.1. His position is due to two circumstances. On the one hand, there is an objective need for insurance protection, which leads to the formation of the insurance market in the socio-economic system of society. On the other hand, the monetary form of insurance coverage connects this market with the general financial market.
The objective need for insurance predetermines the direct connection of the insurance market with the finances of enterprises, the population, the banking system, the 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 relations are developing between the insurance market and the state budget and state extra-budgetary funds, which is associated with the organization of compulsory insurance.
The insurance market has stable financial relations with the securities market, the banking system, the foreign exchange market, state and regional finance, where insurance organizations place insurance reserves and other investment resources.
The insurance market operates within the financial system both on a partnership basis and in a competitive environment. This concerns the competition between different

financial institutions for free funds of the population and business entities. If the insurance market, for example, offers life insurance products, banks - deposits, the stock market - securities, etc.
In a narrow sense, the insurance market can be thought of as an economic space, or a system governed by the ratio of buyers' demand for insurance services and the supply of sellers of insurance coverage. In a broad sense, the insurance market is the sphere of monetary relations, where the object of purchase and sale is insurance protection, demand and supply for it are formed.
The insurance market is a complex developing integrated system, the links of which include insurance organizations, policyholders, insurance products, insurance intermediaries, professional assessors of insurance risks and losses, associations of insurers, associations of policyholders and the system of its state regulation.
Insurance organizations are the institutional basis of the insurance market, an economically separate link in the insurance market, which is expressed in the complete isolation of its resources and independence in the implementation of insurance and other types of activities. Insurance organizations are structured by affiliation, the nature of the insurance operations performed, and the service area.
By affiliation, insurance organizations are divided into joint-stock, private, mutual insurance companies. A joint-stock insurance organization is a non-governmental organizational form in which private capital acts as an insurer in the form of a joint-stock company. The authorized capital of a joint-stock insurer is formed from shares and other securities, which allows, with limited funds, to significantly increase the financial potential of the insurance organization. The shareholding form of insurers dominates the insurance markets of developed countries. Private insurance companies are owned by one owner or his family. The British corporation Lloyd, which is not a legal entity, but an association of individuals, is a unique form of private insurers. In state insurance, the state acts as the insurer. The range of interests of the state includes its monopoly on any or certain types of insurance, which is determined by the relevant law on the status of an insurance organization. The implementation of state insurance is a form of state regulation of the national insurance market. A mutual insurance company is a special non-governmental organizational form expressing an agreement between a group of individuals or legal entities to reimburse each other for future possible losses in certain shares in accordance with the established insurance rules. Mutual insurance is essentially a non-commercial form of organization of an insurance fund that provides insurance protection of the property interests of members of its society. From a legal standpoint, each member of a mutual insurance society is both an insurer and an insured. An insurance policy serves as a document certifying the right to own the capital of a mutual insurance company, its income and insurance coverage.
By the nature of the performed insurance operations, there are specialized and universal insurance organizations. Specialized insurance organizations carry out certain types of insurance (life, fire, nuclear insurance, etc.). Specialized insurers include reinsurance organizations,
accepting from insurers for a certain fee a part of the insured risk. The goal of reinsurance is to create a balanced portfolio of insurance contracts, to ensure financial stability and profitability of insurance operations. Universal insurance companies offer a wide range of insurance services.
According to the service area, local, regional, national and international (transnational) insurance organizations are distinguished.
The demand for insurance products is presented by the policyholder, a legal or capable individual who insures property or concludes a personal insurance or liability insurance contract with the insurer. The policyholder pays insurance premiums and is entitled to receive insurance in the event of an insured event.
An insurance market product is an insurance product. The use value of an insurance product is to provide insurance coverage. The price of an insurance product is determined by the cost of the insurance claim or insurance coverage, as well as the cost of doing business and the amount of the insurer's profit. Like any price, it depends on supply and demand.
Insurance products are promoted and sold mainly by intermediaries: insurance agents and insurance brokers. Insurance agents are individuals or legal entities acting on behalf of and on behalf of the insurer in accordance with the authority given. Insurance brokers can be independent legal entities or individuals licensed to conduct insurance intermediary operations in their own name on the basis of instructions from the policyholder or insurer. The insurance broker does not participate in the insurance contract. His duty is to provide intermediary services and assist in the execution of the insurance contract.
The functioning of the insurance market presupposes the presence of professional assessors of risks and losses, which are surveyors and adjusters. Surveyors are inspectors or agents of an insurance organization who inspect property accepted for insurance. Specialized firms for fire safety, labor protection, etc. also act as a surveyor, interacting with the insurer on a contractual basis. Upon the conclusion of the surveyor, the insurance organization decides to conclude an insurance contract. Adjasters are authorized individuals or legal entities of the insurer who are
determining the causes, nature and amount of losses. Based on the results of the work carried out, the adjuster draws up an insurance act (emergency certificate).
To protect their interests, develop legislative acts, prepare standard insurance rules, collect and publish insurance statistics and other joint purposes, insurance organizations create unions (associations) of insurers at the regional and national levels. In addition, specialized insurance organizations are also uniting. Such associations of insurers cannot engage in insurance activities.
The policyholders also protect their interests by creating associations of policyholders. They express the interests of the injured insurers from unscrupulous insurance organizations, provide victims with legal assistance, participate in the improvement and development of insurance legislation, etc.
An important link in the insurance market is the system of state regulation, the need for which is primarily associated with the protection of the rights and interests of policyholders, the prevention of their financial losses due to the insolvency of the insurance organization.
Thus, the structure of the insurance market can be characterized in institutional, territorial and sectoral aspects.
In the institutional aspect, the structure of the insurance market is determined by the system of law in relation to the organizational and legal forms of insurers and the regulation of their activities.
In terms of the scale and coverage of territories (areas of activity), the global, international, national, regional and local insurance markets are distinguished.
In the sectoral aspect, the insurance market is divided into sectors and individual types of insurance (for example, the market for personal, property and liability insurance), each of which, in turn, can be divided into separate segments (the life insurance market, the property insurance market for individuals, etc.) ).
Comparing the current state of the insurance markets in Russia and developed countries, it should be noted that, despite the efforts made in recent years, the domestic one lags far behind the insurance markets of economically developed countries.
The Russian insurance product line is significantly shorter than its foreign counterparts. At the end of the last century, there were about 60 types of insurance in Russia, while in Europe - about 500, and in the USA - up to 3000 types. For comparison, it can be noted that
Russian insurers in 2002 offered organizations and citizens over 200 different types of insurance services.
A special place in the regulation of the insurance market is given to marketing. Marketing as a method of managing the commercial activities of insurance organizations and a method for researching the insurance market appeared relatively recently. Western insurance companies began using it in the early 1960s, but there are still no clear boundaries for its definition.
Marketing is an integrated approach to the organization and management of all activities of an insurance organization aimed at providing insurance services that correspond in terms of quantity and quality to potential demand.
The experience of using marketing in the market activities of insurance organizations allows us to single out two of its main functions:
the formation of demand for insurance services;
satisfaction of insurance interests.
Insurer Marketing Principles:
studying the conditions of the insurance market;
segmentation of the insurance market;
innovations (continuous improvement of the modification of insurance products, taking into account the requirements of the market).
The most important marketing areas:
definition of the insurance market;
analysis and forecasting of the insurance market;
promotion of an insurance product on the market (advertising, personal contact, propaganda, incentives);
studying the potential of competing organizations.
Analysis of information on the state of demand for insurance services, taking into account its own, financial capabilities allow the organization to develop a business strategy plan for the development of the insurance market:
definition of a strategy for a given product;
selection of promising types of insurance;
selection of optimal channels for the provision of insurance services;
determination of a system to stimulate demand for services (reduction of tariffs, benefits);
selection of competition tools (advertising, commission);
calculation of profitability;
feasibility study of marketing costs;
control.

Insurance emerged and developed as a conscious objective need of a person and society for protection from accidental hazards. The need for insurance coverage 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 on financial flows in the national economy.

The place of the insurance market in the financial system is shown in Fig. 8.1. His position is due to 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 insurance coverage connects this market with the general financial market.

The objective need for insurance predetermines the direct connection of the insurance market with the finances of enterprises, the population, the banking system, the 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 relations are developing between the insurance market and the state budget and state extra-budgetary funds, which is associated with the organization of compulsory insurance.

The insurance market has stable financial relations with the securities market, the banking system, the foreign exchange market, state and regional finance, where insurance organizations place insurance reserves and other investment resources.

If the insurance market, for example, offers life insurance products, banks - deposits, the stock market - securities, etc.

In a narrow sense, the insurance market can be represented as economic space, or a system governed by the ratio of buyers' demand for insurance services and the supply of insurance coverage sellers. In a broad sense the insurance market is the sphere of monetary relations, where the object of sale and purchase is insurance protection, demand and supply for it are formed.

The insurance market is a complex developing integrated system, the links of which include insurance organizations, policyholders, insurance products, insurance intermediaries, professional assessors of insurance risks and losses, associations of insurers, associations of policyholders and the system of its state regulation.

Insurance organizations are the institutional basis of the insurance market, an economically separate link in the insurance market, which is expressed in the complete isolation of its resources and independence in the implementation of insurance and other types of activities. Insurance organizations are structured by affiliation, the nature of the insurance operations performed, and the service area.

By affiliation insurance organizations are divided into joint-stock, private, mutual insurance companies. A joint-stock insurance organization is a non-governmental organizational form in which private capital acts as an insurer in the form of a joint-stock company. The authorized capital of a joint-stock insurer is formed from shares and other securities, which allows, with limited funds, to significantly increase the financial potential of the insurance organization. The shareholding form of insurers dominates the insurance markets of developed countries. Private insurance companies are owned by one owner or his family. The British corporation Lloyd, which is not a legal entity, but an association of individuals, is a unique form of private insurers. In state insurance, the state acts as the insurer. The range of interests of the state includes its monopoly on any or certain types of insurance, which is determined by the relevant law on the status of an insurance organization. The implementation of state insurance is a form of state regulation of the national insurance market. A mutual insurance company is a special non-governmental organizational form expressing an agreement between a group of individuals or legal entities to reimburse each other for future possible losses in certain shares in accordance with the established insurance rules. Mutual insurance is essentially a non-commercial form of organization of an insurance fund that provides insurance protection of the property interests of members of its society. From a legal standpoint, each member of a mutual insurance society is both an insurer and an insured. An insurance policy serves as a document certifying the right to own the capital of a mutual insurance company, its income and insurance coverage.

By the nature of the insurance operations performed distinguish between specialized and universal insurance organizations. Specialized insurance organizations carry out certain types of insurance (life, fire, nuclear insurance, etc.). Specialized insurers also include reinsurance organizations that accept a part of the insured risk from insurers for a certain fee. The goal of reinsurance is to create a balanced portfolio of insurance contracts, to ensure financial stability and profitability of insurance operations. Universal insurance companies offer a wide range of insurance services.

By service area distinguish between local, regional, national and international (transnational) insurance organizations.

The demand for insurance products is presented by the policyholder, a legal or capable individual who insures property or concludes a personal insurance or liability insurance contract with the insurer. The policyholder pays insurance premiums and is entitled to receive insurance in the event of an insured event.

An insurance market product is an insurance product. The use value of an insurance product is to provide insurance coverage. The price of an insurance product is determined by the cost of the insurance claim or insurance coverage, as well as the cost of doing business and the amount of the insurer's profit. Like any price, it depends on supply and demand.

Insurance products are promoted and sold mainly by intermediaries: insurance agents and insurance brokers. Insurance agents are individuals or legal entities acting on behalf of and on behalf of the insurer in accordance with the authority given. Insurance brokers can be independent legal entities or individuals licensed to conduct intermediary operations but insure on their own behalf on the basis of instructions from the policyholder or the insurer. The insurance broker does not participate in the insurance contract. His duty is to provide intermediary services and assist in the execution of the insurance contract.

The functioning of the insurance market presupposes the presence of professional assessors of risks and losses, which are surveyors and adjusters. Surveyors - inspectors or agents of an insurance organization who inspect property accepted for insurance. Specialized firms for fire safety, labor protection, etc. also act as a surveyor, interacting with the insurer on a contractual basis. Upon the conclusion of the surveyor, the insurance organization decides to conclude an insurance contract. Adjusters- these are authorized individuals or legal entities of the insurer involved in establishing the causes, nature and amount of losses. Based on the results of the work carried out, the adjuster draws up an insurance act (emergency certificate).

To protect their interests, develop legislative acts, prepare standard insurance rules, collect and publish insurance statistics and other joint purposes, insurance organizations create unions (associations) of insurers at the regional and national levels. In addition, specialized insurance organizations are also uniting. Such associations of insurers cannot engage in insurance activities.

The policyholders also protect their interests by creating associations of policyholders. They express the interests of the injured insurers from unscrupulous insurance organizations, provide victims with legal assistance, participate in the improvement and development of insurance legislation, etc.

An important link in the insurance market is the system of state regulation, the need for which is primarily associated with the protection of the rights and interests of policyholders, the prevention of their financial losses due to the insolvency of the insurance organization.

Thus, the structure of the insurance market can be characterized in institutional, territorial and sectoral aspects.

In the institutional aspect, the structure of the insurance market is determined by the system of law in relation to the organizational and legal forms of insurers and the regulation of their activities.

In terms of the scale and coverage of territories (areas of activity), the global, international, national, regional and local insurance markets are distinguished.

In the sectoral aspect, the insurance market is divided into sectors and individual types of insurance (for example, the market for personal, property and liability insurance), each of which, in turn, can be divided into separate segments (the life insurance market, the property insurance market for individuals, etc.) ).

Comparing the current state of insurance markets in Russia and developed countries, it should be noted that, despite the efforts made in recent years, the domestic one lags far behind the insurance markets of economically developed countries.

The Russian insurance product line is significantly shorter than its foreign counterparts. At the end of the last century, there were about 60 types of insurance in Russia, while in Europe - about 500, and in the USA - up to 3000 types. For comparison, it can be noted that in 2002 Russian insurers offered organizations and individuals over 200 different types of insurance services.

A special place in the regulation of the insurance market is given to marketing. Marketing as a method of managing the commercial activities of insurance organizations and a method for researching the insurance market appeared relatively recently. Western insurance companies began using it in the early 1960s, but there are still no clear boundaries for its definition.

Marketing is an integrated approach to the organization and management of all activities of an insurance organization aimed at providing insurance services that correspond in terms of quantity and quality to potential demand.

The experience of using marketing in the market activities of insurance organizations allows us to single out two of its main functions:

■ generating demand for insurance services;

■ satisfaction of insurance interests.

Insurer Marketing Principles:

■ studying the situation in the insurance market;

■ segmentation of the insurance market;

■ innovation (continuous improvement of the modification of insurance products, taking into account the requirements of the market).

The most important marketing areas:

1) definition of the market for insurance services;

2) analysis and forecasting of the insurance market;

3) promotion of the insurance product on the market (advertising, personal contact, propaganda, incentives);

4) studying the potential of competing organizations.

Analysis of information on the state of demand for insurance services, taking into account its own financial capabilities allow an organization to develop a business strategy plan for the development of the insurance market:

1) definition of a strategy for a given product;

2) selection of promising types of insurance;

3) selection of optimal channels for the provision of insurance services;

4) determination of a system for stimulating demand for services (reduction of tariffs, benefits);

6) calculation of profitability;

7) a feasibility study of marketing costs;

8) control.

Segmentation of the insurance market. The segment is the consumers of insurance services who react in the same way to certain offers of insurance organizations.

Market segmentation is the process of dividing consumers into groups according to some criterion that is relevant for the implementation of an insurance service (age, gender, material wealth, profession).

There is a geographic (by regional basis) and demographic segmentation (gender, age, income level) of the market.

Thus, with the help of the marketing service, the coordination of the activities of all existing divisions of the insurance organization is ensured, their transformation into a single system, which will allow the management of the insurance organization to purposefully influence the insurance market.

Management in insurance includes the management of intellectual, financial, raw materials in order to ensure the most efficient activities of the insurer.

A characteristic feature of the insurance market is the unpredictability of the possible outcome, i.e. its risky nature. Thus, the main feature of management in insurance is risk management.

The main duty of a manager in these conditions is not to avoid risk, but by anticipating it, to reduce possible negative consequences to a minimum, if it is impossible to avoid them. Targeted actions to limit risk in the system of insurance relations are called "risk management" or "risk management".

Risk management allows you to assess the amount of insurance risk close to the real one, to develop measures with which the negative results of actions can be neutralized.

Risk management methods:

■ abolition - an attempt to avoid risk;

■ loss prevention and control;

■ insurance from the standpoint of risk management (creation by participants of insurance funds and compensation in the form of insurance payments);

■ takeover - recognition of damage without reimbursing it through insurance.

Risk management process consists of the following stages:

1) definition of the goal;

2) clarification of the risk (statistical data);

3) risk assessment (determination of the probability of an insured event and the amount of insurance damage);

4) the choice of the risk management method.

To perform the functions of an insurance organization, its organizational management structure is formed. The management structure is created taking into account the external environment, taking into account its size and specialization.

Short description

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 coverage, which leads to the emergence of an economic phenomenon - the insurance market. On the other hand, the monetary form of organizing an insurance fund to provide insurance coverage connects this market with the general financial market.

Attached files: 1 file

The place of the insurance market in the financial system

Rice. 1 Place of the insurance market in the financial system

In countries with 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 reimburses the damage caused to the state, enterprises, citizens as a result of natural and man-made disasters and accidents (according to the EMERCOM of Russia, such damage in 1996 amounted to 80 billion rubles, in 1997 - more than 300 billion rubles), exempting the state from payments , creates an opportunity to direct the released money to social and other important state programs;
promotes social and economic stability in society, as an integral element of the social protection system of the population through the implementation of socially important types of insurance (additional pension insurance, long-term life insurance, motor third party 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 of investment in the economy (in the United States, about 30% of long-term investment in the economy falls on the funds of insurance organizations that provide long-term life insurance ).

The insurance market plays a significant role for the development and effective functioning of the financial sector of the national economy, since insurance companies are financial intermediaries that reduce transaction costs associated with the movement of funds from those who save money to borrowers by accumulating significant funds from numerous payers of insurance premiums.

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 the property interests of individuals and legal entities in the event of an insured event. The use value of an insurance service is to provide insurance coverage, the exchange value is in the insurance rate.

The structure of the insurance market is formed from:

insurance organizations;
policyholders;
insurance products;
insurance intermediaries;
professional appraisers of insurance risks and losses;
associations of insurers;
associations of policyholders;
the system of state regulation of the insurance market.

Insurance organizations - the institutional basis of the insurance market, a specific form of organization of the insurance fund of the insurer. The insurance company carries out the conclusion of insurance contracts and their maintenance. Insurance organizations are structured by affiliation, the nature of the operations performed, and the service area.

Insurance organizations are divided into: joint stock, private, public law and mutual insurance companies.

The shareholding form of insurance companies dominates in developed markets.

Joint-stock insurance company is a non-state organizational form in which private capital acts as an insurer, registered as a 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 insurers are subsidized non-profit organizations. Government insurance organizations specialize in unemployment insurance and compensation for workers and employees who temporarily lose their jobs.

A mutual insurance company is a special non-governmental organizational form expressing an agreement between a group of individuals or legal entities to reimburse each other for future possible losses in certain shares in accordance with the established insurance rules. Mutual insurance is a non-commercial form of organization of an insurance fund, which provides insurance protection of the property interests of members of its society.

In developed countries, the market share of mutual insurance reaches 50% of the entire insurance market.

An insurance market product 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 vehicles, etc. This type of company also includes reinsurance companies that accept a part of the insured risk from insurers for a certain fee. The goal of reinsurance is to create a balanced portfolio of reinsurance contracts, to ensure financial stability and profitability of insurance operations.

Universal insurance companies offer a wide range of insurance services. Since the purchase and sale of an insurance product is carried out in the insurance market, it is necessary to promote insurance agents in the market and to sell them. These operations are carried out by insurance intermediaries: insurance agents and insurance brokers.

Insurance agents are individuals or legal entities acting on behalf of and on behalf of the insurer in accordance with the authority provided.

Insurance brokers are independent individuals or legal entities licensed to carry out intermediary insurance operations on their own behalf on the basis of instructions from the policyholder or the 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 presupposes the presence of professional assessors of risks and losses - surveyors and adjusters.

Surveyors are inspectors or agents of an insurance organization who inspect the insured property. Upon the conclusion of the surveyor, the insurance company decides to conclude an insurance contract.

Adjusters are authorized persons or companies involved in determining the causes, nature and amount of losses.

State regulation of the insurance market can be represented as follows:

Rice. 2 The system of state regulation of the insurance market

Figure 3. Factors contributing to the growth of the insurance market in 2012.

Problems on p. The 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 voluntary insurance market cannot actively develop;
relatively weak development of insurance operations (depending on the general state of the economy, improvement of legislation in terms of streamlining compulsory types of insurance, development of long-term life insurance, pension and mutual insurance, taxation) hinders the increase in own funds and the accumulation of insurance reserves in insurance companies;
the lack of a system for involving the population's money in the investment process by concluding long-term life insurance and pension contracts;
lack of reliable instruments for long-term placement of insurance reserves;
restricting competition in some 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;
the low level of capitalization of insurance organizations (limited financial market capacity), 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 an 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 of state insurance supervision.

The place of the insurance market is due to two factors. 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 an insurance fund to provide insurance coverage connects this market with the general financial market.

Insurance emerged and developed as a conscious objective need of a person and society for protection from accidental hazards. The process of social reproduction is accompanied by conflicts and opposition of various forces of a natural and social nature, which can lead to significant material losses.

The social need for compensation for material losses determines the need to establish certain relationships between people to prevent, limit and overcome them. Such objective economic relations, associated with ensuring the continuity and uninterruptedness of social reproduction, as well as maintaining the stability and sustainability of the achieved standard of living in aggregate, express the essence of insurance coverage. The need for insurance coverage 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.

Insurance is a prerequisite for social reproduction. Therefore, the costs of providing insurance coverage should be included in production costs, which corresponds to the amortization theory of insurance and contradicts the theory of Marx, according to which the source of the formation of an insurance fund is profit. The Marxist concept of the insurance fund was embodied in the Soviet economy and is to some extent observed in modern Russia, when business entities cannot attribute all insurance costs to production costs. This circumstance acts as a constraining factor in the development of the modern Russian insurance market.

The insurance market not only contributes to the development of social reproduction, but also actively influences through the insurance fund on financial flows in the national economy. 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 of placement of investment resources of insurance organizations and servicing insurance, investment and other types of activities (Figure 13.1).

The place of the insurance market in the financial system

In such relationships, the relevant financial institutions act as policyholders and consumers of insurance products. Specific relations are developing between the insurance market and the state budget and state extra-budgetary funds, which is associated with the organization of compulsory insurance.

Carrying out by insurance organizations of insurance, investment and other types of activities is associated with contributions to the state and local budgets, off-budget state funds, etc. In addition, the insurance market uses individual financial institutions (eg banks) to market its insurance products.

The insurance market operates within the financial system both on a partnership basis and in a competitive environment. This concerns the competition between various financial institutions for free funds of the population and economic entities. If the insurance market, for example, offers life insurance products, banks - deposits, the stock market - securities, etc.

Functions of the insurance market

The insurance market performs a number of interrelated functions: compensation, accumulation, distribution, preventive and investment.

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 the provision of insurance protection to legal entities and individuals in the form of compensation for damage in the event of adverse events, which was the object of insurance.

The accumulative, or savings, function is provided by life insurance and allows you to accumulate a predetermined insurance amount against the concluded insurance contract. It should be noted that banks also carry out a savings function, but unlike insurers, they pay regular income to deposit holders in the form of interest, and insurers mainly pay only one-time compensation. The accumulative function is also manifested in a constant increase in the financial potential of the insurance market.

The distribution function of the insurance market implements the mechanism of insurance protection. The essence of the function is expressed in the formation and targeted use of the insurance fund.

The formation of the insurance fund is implemented in the system of insurance reserves, which provide a guarantee of insurance payments and the stability of insurance. The participants in the formation of the insurance fund have the right to compensation for damage. The procedure for compensation is determined by insurance organizations based on the terms of the contract and insurance rules and is regulated by the state.

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. Adequate funding is provided from the preventive measures fund.

The implementation of preventive functions helps to increase the financial stability of insurers and is an important factor in ensuring the continuity of the process of social reproduction.

The investment function of the insurance market is realized through the placement of temporarily surplus funds in securities, bank deposits, real estate, etc. With the development of the insurance market, the role of the investment function increases. Attention is drawn to the opinion of a number of foreign economists who define insurance companies as institutional investors, one of whose main functions in social production is the mobilization of capital through insurance.

The basis for the formation of the insurance market is the need to implement the reproduction process to ensure its continuity and stability by providing monetary compensation to the affected economic entities and citizens under unfavorable circumstances in their life. The independence of the subjects of market relations led to the emergence of the insurance market and the equal partnership of its participants in the purchase and sale of insurance services. The place of the insurance market in the financial system in general and in the financial market in ...

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Ministry of Education and Science of the Russian Federation

Federal State Budgetary Educational Institution of Higher Professional Education

"Magnitogorsk State Technical

University named after G.I. Nosov "

(FSBEI HPE "MSTU")

Department of Economics and Finance

essay

on the topic of:

Insurance market, its structure and functions

Completed by: Kovalenko Yulia Vladimirovna, 3rd year student, group FEUPO-13

Head: Akhmedzhanova Tatyana Aleksandrovna, Art. Lecturer at the Department of Economics and Finance

Magnitogorsk, 2015

Introduction

The insurance market is a certain sphere of monetary relations, in which the object of purchase and sale is insurance services and the demand and supply for them are formed. It is characterized as a complex multifactorial dynamic system, consisting of constantly interacting and interdependent economic elements, separate groups of participants and market entities. The constituent parts interacting in the market system of insurance services include: insurance products, a set of tariffs and premiums, the infrastructure of insurers, customer demand, the level of profitability of insurance operations, etc. The insurance market is formed from the dialectical unity of two systems - the internal system and the external environment, which continuously influence each other in the process of their development. The internal system is fully managed by the insurer. The external system, or external environment, consists of elements controlled and uncontrolled by the insurer. At the same time, the external environment surrounds the internal system and limits it.

The basis for the formation of the insurance market is the need for the reproduction process, ensuring its continuity and stability by providing monetary compensation to the affected economic entities and citizens under unfavorable circumstances in their life.

The insurance market historically arose in the process of the formation of the commodity economy and became an integral part of its functioning. The condition for the existence of both is the social division of labor and the corresponding presence of various owners - separate producers of goods. The independence of the subjects of market relations led to the emergence of the insurance market and the equal partnership of its participants in the purchase and sale of insurance services. The insurance market presupposes a developed system of horizontal and vertical ties, competition, improvement of insurance products and an increase in the efficiency of insurance operations.

Insurance market Is a part of the financial market, a place where insurance products are bought and sold.

The social need for compensation for material losses determines the need to establish economic relations between people in connection with the prevention, limitation and overcoming of risks.

Rice. 1 Place of the insurance market in the financial system

Insurance is a prerequisite for social reproduction. Therefore, the cost of providing insurance coverage should be included in production costs, which is consistent with the depreciation theory of insurance. The insurance market not only actively influences the process of expanded reproduction, but also actively influences financial flows in the economy through the insurance fund. The monetary form of organization of insurance relations includes insurance in the general sphere of the financial market.

The universality of insurance determines the direct connection of the insurance market with the finances of enterprises, the finances of the population, the banking system, the 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.

The insurance market operates within the financial system, both on partnership terms and in a competitive environment. This concerns the competitive struggle between various financial institutions for free funds of the population and economic entities. If the insurance market offers insurance products, banks - deposits, the stock market - securities, etc.

Functions of the insurance market

The insurance market performs a number of interrelated functions: compensation, accumulation, distribution, preventive and investment.

Compensation functionthe insurance market is expressed in the provision of insurance coverage to legal entities and individuals in the form of compensation for damage in the event of adverse events that were the object of insurance.

Accumulation function (savings)is provided by life insurance and allows you to accumulate a predetermined amount against the concluded insurance contract.

Distribution functionthe insurance market implements an insurance protection mechanism. The essence of this function is in the formation and targeted use of the insurance fund. The formation of the insurance fund is implemented in the system of insurance reserves, which provide a guarantee of insurance payments and the stability of insurance.

Warning functionthe insurance market works to prevent an insured event and reduce damage.

Investment functionrealized through the placement of temporarily free funds in securities, bank deposits, real estate, etc.

Insurance market structure

The insurance market is a complex integrated system.

The structure of the insurance market is formed from:

insurance organizations;
policyholders;
insurance products;
insurance intermediaries;
professional appraisers of insurance risks and losses;
associations of insurers;
associations of policyholders;
the system of state regulation of the insurance market.

Insurance organizations- the institutional framework of the insurance market, the specific form of organization of the insurance fund of the insurer. The insurance company carries out the conclusion of insurance contracts and their maintenance. Insurance organizations are structured by affiliation, the nature of the operations performed, and the service area.

Insurance organizations are divided into: joint stock, private, public law and mutual insurance companies.

The shareholding form of insurance companies dominates in developed markets.

Joint Stock Insurance Company- a non-governmental organizational form in which private capital acts as an insurer, registered as a 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.

V state insurancethe state acts as an 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- these organizations belong to non-profit structures whose activities are based on subsidies. Government insurance organizations specialize in unemployment insurance and compensation for workers and employees who temporarily lose their jobs.

Mutual Insurance SocietyIs a special non-governmental organizational form expressing an agreement between a group of individuals or legal entities to reimburse each other for future possible losses in certain shares in accordance with the established insurance rules. Mutual insurance is a non-commercial form of organization of an insurance fund, which provides insurance protection of the property interests of members of its society. In developed countries, the market share of mutual insurance reaches 50% of the entire insurance market.

Insurance market product- insurance product. The promotion and sale of the product in the insurance market is carried out by insurance intermediaries.

Specialized insurance companies- they produce certain types of insurance, for example, life insurance, motor vehicles, etc. This type of company also includes reinsurance companies that accept a part of the insured risk from insurers for a certain fee. The goal of reinsurance is to create a balanced portfolio of reinsurance contracts, to ensure financial stability and profitability of insurance operations.

Universal insurance organizationsoffer a wide range of insurance services. Since the purchase and sale of an insurance product is carried out in the insurance market, it is necessary to promote insurance agents in the market and to sell them. These operations are carried out by insurance intermediaries: insurance agents and insurance brokers.

Acquisitors - employees performing the functions of selling insurance policies. The main acquirer in the insurance activities of our country is an insurance agent, whose main duty is to conclude new and renew existing contracts, as well as to carry out campaigning and promotion of insurance services among the population.

Insurance agents- individuals or legal entities acting on behalf of the insurer and on its behalf in accordance with the powers presented.

Insurance brokers- independent individuals or legal entities licensed to conduct insurance intermediary operations on their own behalf on the basis of instructions from the policyholder or the 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 presupposes the presence of professional assessors of risks and losses - surveyors and adjusters.

Surveyors - inspectors or agents of an insurance organization who inspect the insured property. Upon the conclusion of the surveyor, the insurance company decides to conclude an insurance contract.

Adjusters - these are authorized persons or companies involved in establishing the causes, nature and amount of losses.

State regulation of the insurance market can be represented as follows (Fig. 2):

Rice. 2 The system of state regulation of the insurance market

Organization of the insurance market

Organization of the insurance marketIs the management of insurance as part of the financial market.

The main goal of regulating the insurance market is to streamline insurance risks, combine them into homogeneous groups, and classify them by specific characteristics. The insurance risk in this case is a specific value applied to a specific insurance object. All insurance markets are divided according to the insurance industry: personal, property, liability insurance.

The organization of the insurance business is expressed in licensing the activities of insurance organizations [ 5 ].

Insurance market entities

Insurance subjects include: insurers, policyholders, insured persons.

Insurers - these are legal entities that have a state license to conduct insurance operations and organize the formation and spending of the insurance fund. The insurers can be state insurance organizations, joint stock insurance companies, mutual insurance companies and insurance pools.

Insurance pool Is a voluntary association of insurers that is not a legal entity, created on the basis of joint liability of its participants for the fulfillment of obligations. An insurance pool is created to insure certain, mainly especially large, dangerous and little-known risks. The pool is based on coinsurance. Each participant receives a certain share of the contributions collected by the pool and is liable for damages in the same share. The quota of pool members is determined in proportion to the contributions transferred to the general fund.

A number of insurance pools have been formed on the Russian insurance market: an ecological pool, a space risk insurance pool, a nuclear liability insurance pool, a medical insurance pool and a number of others.

Policyholders - these are legal entities and individuals with an insurable interest and entering into a relationship with the insurer by virtue of law or on the basis of a contract. In personal and social insurance, the contract can be concluded in favor of third parties, i.e. the insured, who have the right to receive compensation in the event of an insured event or the redemption amount in case of early termination of the contract.

Insurance service

The product offered in the insurance market is an insurance service. The insurance service can be provided on the basis of a contract (in voluntary insurance) or on the basis of the law (in compulsory insurance). In cases where the provision of services is necessary from the standpoint of public interest, the policyholder is forced to purchase an insurance service. In voluntary insurance, a different approach is taken.

The insurer seeks to limit the increased risks. So, in foreign insurance, the owner of a car may be refused admission for insurance if he is noticed in violation of traffic rules, or the owner of real estate, if he refused to comply with the requirements of a specialist of the insurance company to ensure additional fire safety.

Joint-stock insurance organizations of our country are currently only forming their portfolio and gaining a clientele, therefore, in cases of increased risk, they prefer not to refuse to accept insurance, but to use an increase in the price of an insurance service.

The price of an insurance service is expressed in the insurance rate and is formed on a competitive basis when comparing supply and demand, but it is based on the amount of insurance compensation and the cost of doing business.

In a competitive environment, the price is the object of the contract, but it always moves within certain boundaries.

The lower price limit is determined by the principle of equivalence in insurance relations, which provides for equality between the receipt of payments from policyholders and payments of insurance compensation.

The upper price limit is determined by the needs of the insurer. Exceeding it puts the insurer in an unfavorable competitive position, and he loses a client.

The price of a particular insurer's service depends on the size and structure of its insurance portfolio, the quality of investment activities, the amount of management costs and the expected profit.

Insurance service price, or tariff rate (gross rate),consists of two parts: net rate and load. It is set in monetary terms from a unit of the insured amount or as a percentage of the total insured amount.

The main part of the insurance rate is net rate - is intended for the formation of forthcoming insurance payments to policyholders. The construction of the net rate is based on the probability of an insured event, which is determined on the basis of statistical data accumulated over a number of years (tariff period). The net rate is determined using actuarial calculations, which are a system of mathematical and statistical techniques, with the help of which the costs associated with the insurance of individual objects are established and the tariff rate is calculated.

Actuarial calculations are associated with the study and grouping of insurance risks, calculating the mathematical probability of an insured event, determining the frequency and severity of the consequences of the damage caused and predicting their development trends. The basis for the formation of the net rate is the loss ratio of the insured amount, which is defined as the ratio of the amount of insurance compensation paid for a certain period to the insured amount of all insured objects for the same period.

Then the average loss ratio is calculated, adjusted for the amount of risk premium (the probability of deviation of the loss ratio from its average value). For this, a dynamic series of unprofitable indicators is built and its stability is assessed using the standard deviation indicator.

The second element of the tariff rate isIt includes the expenses of the insurer for the conduct of business, deductions for preventive measures, in reserve funds and income from insurance operations.

The share of the load in the gross tariff is determined by the insurer independently.

Russian insurance market

Currently, there are several insurance unions and associations in the Russian Federation that unite insurance companies mainly on a geographic basis, the main of which is the All-Russian Union of Insurers (ARIA). The problems of insurance development in Russia are being investigated by professional insurers and economists. The insurance market in Russia has great prospects, the insurance system is not developed as in the West, and the insurance market is not fully developed. This topic is relevant, since insurance is an effective tool for stabilizing the economy.

The reduction of insurance companies continues on the market. According to the registryFSSN / FFMS number of companies in June 2013 - 618, and a year later in June 2014 - 583 companies. Unfortunately, the dynamics by 2015 remained negative; in July 2015, 535 insurance companies remained on the market. For 2 years from the market of insurance services 83 companies "left", which is 16% of the total number of working organizations.

Table 1 shows information on collected insurance payments for the 2nd quarter of 2014 and 2015.

Table. Information about collected insurance benefits

		Indicator, thousand rubles		the change
place	Insurance Company	2 quarter 2015	2 quarter 2014	Thousand roubles
	Rosgosstrakh	38 366 077	34 422 414	3 943 663	11,46
	SOGAZ	24 544 245	20 173 337	4 370 908	21,67
	RESO-guarantee	20 095 545	16 169 410	3 926 135	24,28
	Ingosstrakh	18 147 596	16 378 525	1 769 071	10,8
	AlphaInsurance	14 914 284	12 449 216	2 465 068	19,8
	VSK	13 391 062	9 937 198	3 453 864	34,76
	Sberbank life insurance	10 154 942	8 716 470	1 438 472	16,5
	VTB insurance	9 210 029	7 078 115	2 131 914	30,12
	Agreement	7 545 908	9 285 644	1 739 736	18,74
	Renaissance Insurance Group	5 699 571	5 152 373	547 198	10,62

From the data presented in the table, we can conclude that almost all companies have an increase in insurance premiums, except for Soglasie (-18.74%), this affected its place in the rating, it dropped 2 positions down. Renaissance Insurance Group has gone not far, the level of insurance payments for the given period is insignificant and therefore this company closes the top 10 leaders.

In 2015, the growth in the level of market concentration continues. Only a few medium and small insurers have been able to adequately compete with the market leaders. The main reason is to redistribute the demand of policyholders in favor of reliable companies.

One of the most popular types of insurance in the Russian Federation is OSAGO. This type of insurance has two significant advantages:

1) MTPL insurance policies provide for compensation by insurers for damage that was caused to participants in a traffic accident that happened through your fault. However, the amount of payments is strictly limited and amounts to 400,000 rubles.

2) An unlimited number of insured events, that is, the insurance company will pay for each new accident separately in accordance with the limit of 400,000 rubles for each insured situation.

In the market of compulsory motor third party liability insurance (OSAGO), Rosgosstrakh is by far the leader (18,828,318 thousand rubles), followed by RESO-garantia (7,688,672 thousand rubles), and completes the top 10 company "Yuzhural-ASKO" (1,145,360 thousand rubles). OSAGO remains one of the largest segments of the insurance market. Proceeds for 6 months of 2014 amounted to 67,369,541 thousand rubles, which is 106.97% of the same period of the previous year, and in 2015 receipts amounted to 93,907,683 thousand rubles. (139.39%).

Based on the analyzed data, there is a negative trend in the insurance market in the Russian Federation: the reduction of insurance companies, the collection of insurance payments increased slightly. Such a decline is present not only in the insurance market, but also in other spheres of the country's economy. This is due to the crisis in the country and political instability in the world.

Conclusion

A developed market assumes that supply outstrips demand. The objective basis of the demand for insurance services is the need for insurance, which is realized as an insurance interest. The insurance interests of the community are extremely diverse. So, the insurance interests of the population are determined not only by the level of material well-being of the family, but also by the way of life of the potential insured, his belonging to a particular nationality and social group, age, gender, etc.

The objectively existing need for insurance does not automatically transform a potential policyholder into a real policyholder. A potential insured will only enter into an insurance relationship when the insured interest is realized by him. But the presence of an insurable interest is not identical to the demand for an insurance service, since in order to purchase it, a potential policyholder must be solvent. Therefore, the insurer, offering its services, must show its economic feasibility and profitability for the policyholder. The need to help the insured in determining his insurance interest is especially important for the entire insurance market in Russia, since the insurance traditions that existed earlier have been lost, and in some cases they did not even have time to take shape. In addition, the insurance service must be structured in such a way that the price for it corresponds to the solvency of the policyholders for whom it is intended.

Bibliography:

http://www.banki.ru// Banks.ru, information portal: rating of insurance companies.
http://www.insur-info.ru// "Insurance today", information about the receipts of insurance payments.
http://prosstrah.ru/preimushestva_osago.htmlInsurance house "VSK"
http://www.strategplann.ru/strahovanie/strahovoj-rynok-i-ego-struktura.html“Strategy and Management. ru ", The insurance market and its structure
http://www.grandars.ru/college/strahovanie/strahovoy-rynok.htmlInsurance, insurance market

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