Financial services in the insurance market. Insurance market

Place insurance market in the financial system

The insurance market historically arose in the process of 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 different owners - separate commodity producers. Independence of subjects market relations determined the emergence of the insurance market and equal partnership of its participants in the purchase and sale of insurance services. The insurance market requires a developed system of horizontal and vertical connections, competition, improvement of insurance products and increased efficiency of insurance operations.

The insurance market is part of the financial market, the 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 preventing, limiting and overcoming risks.

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 protection, which leads to the emergence of an economic phenomenon - the insurance market. With another? monetary form of organization insurance fund providing insurance protection connects this market with the general financial market(Fig. 1).

insurance market service Russian

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

Insurance - required condition social reproduction. Therefore, the costs of providing insurance protection should be included in production costs, which corresponds to the depreciation theory of insurance. The insurance market not only actively influences the process of expanded reproduction, but also actively influences through the insurance fund financial flows in economics. Monetary form The 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, finances of the population, banking system, state budget and others financial institutions, within which they are implemented insurance relations. In such relationships, the relevant financial institutions act as policyholders and consumers of insurance products.

The functioning of the insurance market takes place within the framework of financial system, both on partnership terms and in competitive conditions. This concerns the competitive struggle between various financial institutions for the free funds of the population and business entities. If the insurance market offers insurance products, then banks offer deposits, stock market- securities, etc.

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

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Place of the insurance market in the financial system

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

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

In countries with a 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; insurance system compensates for damage caused to the state, enterprises, citizens as a result of natural and man-made disasters and incidents (according to the Russian Ministry of Emergency Situations, such damage in 1996 amounted to 80 billion rubles, in 1997 - more than 300 billion rubles), freeing the state from payments, creates the opportunity to use freed up money for social and other important government programs;
promotes socio-economic stability in society, as an integral element of the system social protection population through the implementation of socially important types of insurance (additional pension insurance, long-term life insurance, motor vehicle 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 investments in the economy (in the United States, about 30% of long-term investments in the economy come from insurance organizations that provide long-term life insurance).

The insurance market plays significant role for the development and effective functioning of the financial sector national economy, since insurance companies are financial intermediaries that reduce the transaction costs associated with the movement of funds from savers to borrowers by accumulating significant funds from multiple premium payers.

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 property interests of individuals and legal entities upon the occurrence of an insured event. The use value of an insurance service lies in the provision of insurance protection, the exchange value lies in the insurance tariff.

The structure of the insurance market is formed from:

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

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

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

The shareholder form of insurance companies dominates in developed markets.

A joint stock insurance company is a non-state organizational form in which private capital acts as an insurer, registered as Joint-Stock Company. Authorized capital joint stock insurance company is formed from shares and other securities, which allows you to significantly increase your financial potential with limited funds.

Private insurance companies are owned by one owner or his family.

IN state insurance The 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 are non-profit structures whose activities are based on subsidies. Government insurance organizations specialize in unemployment insurance and compensation for workers and employees who have temporarily lost their jobs.

A mutual insurance company is a special non-state organizational form that expresses an agreement between a group of individuals or legal entities to compensate each other for future possible losses in certain shares in accordance with established insurance rules. Mutual insurance is a non-profit form of organization of an insurance fund that provides insurance protection property interests of members of their society.

IN developed countries The share of the mutual insurance market reaches 50% of the entire insurance market.

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

Universal insurance organizations offer a wide range of insurance services. Since the purchase and sale of insurance products is carried out in the insurance market, both the promotion of insurance agents in the market and their implementation are necessary. These operations are carried out by insurance intermediaries: insurance agents and insurance brokers.

Insurance agents- physical or legal entities, acting on behalf of the insurer and on his behalf in accordance with the powers presented.

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

Surveyors are inspectors or agents of an insurance organization who inspect the insured property. According to the surveyor's conclusion Insurance Company makes a decision on concluding an insurance contract.

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

Government regulation The insurance market can be represented as follows:

Rice. 2 System of state regulation of the insurance market

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

Problems on p. 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 compulsory insurance, without which the market cannot actively develop voluntary insurance;
relatively weak development of insurance operations (depending on the general state of the economy, improvement of legislation in terms of streamlining mandatory types insurance, development of long-term life insurance, pension and mutual insurance, taxation) restrains the increase own funds and accumulation of insurance reserves from insurance companies;
lack of a system of involvement in the investment process Money population through the conclusion of long-term life insurance and pension contracts;
lack of reliable instruments for long-term placement of insurance reserves;
restriction of competition in certain 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;
low level of capitalization of insurance organizations (limited financial capacity of the market), 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 the 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 for state insurance supervision.

The economic category of the insurance market is integral part categories of finance. However, if finance as a whole is associated with the distribution and redistribution of income and savings, then the insurance market covers only the sphere of redistribution relations. The insurance market is becoming more effective method compensation for damage, when millions of policyholders are involved and hundreds of millions of objects are insured. This ensures a sufficient concentration of funds in a single fund, called an insurance fund. Taking into account the characteristics of the insurance market, we can give the following definition:

The place of the insurance market is determined by 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 organizing the insurance fund for providing insurance protection connects this market with the general financial market.

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 for allocating investment resources of insurance organizations and servicing insurance, investment and other types of activities (Fig. 2).

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. Specific relationships develop between the insurance market and the state budget and government off-budget funds, which is associated with the organization of compulsory insurance.

Figure 2. Place of the insurance market in the financial system.

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

The functioning of the insurance market takes place within the financial system, both on a partnership basis and in conditions of competition. This concerns the competition between various financial institutions for the free funds of the population and business entities. If the insurance market, for example, offers life insurance products, then banks offer deposits, the stock market offers securities, etc.

The insurance market performs a number of interrelated functions: compensation (refund), savings, distribution, precautionary and investment:

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

2) The accumulative or savings function is provided by life insurance and allows you to accumulate a predetermined insured amount against the concluded insurance contract.

3) Distributive function The insurance market implements an insurance protection mechanism. 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 stability of insurance.

4) The preventive function of the insurance market is not directly related to the implementation of insurance activities. This function works on warning insured event and damage reduction. The implementation of the preventive function is ensured by financing measures to prevent or reduce the negative consequences of accidents and natural disasters. Appropriate funding is provided from the preventive measures fund. Implementation of preventive functions helps to increase financial stability insurers and is an important factor in ensuring the uninterrupted process of social reproduction.

5) Investment function The insurance market is implemented through the placement of temporarily available funds in securities, bank deposits, real estate, etc. With the development of the insurance market, the role of the investment function increases. Noteworthy are a number of foreign economists who define insurance companies as institutional investors, whose main function in social production is the mobilization of capital through insurance.

Conclusion: Insurance is a set of special closed redistribution relations between its participants regarding the formation of a target insurance fund through cash contributions, intended to compensate for possible damage caused by business entities, or to equalize losses in family income in connection with the consequences of insured events.

The economic necessity of using precisely the category of insurance for the formation and use of the insurance fund appears when the state is deprived of the ability to widely maneuver financial resources economic units (enterprises, organizations, societies), and even more so with the funds of individual citizens. The property isolation of households and families of citizens creates objective conditions for insurance protection of the relevant objects using a method such as insurance.

At that period of economic development of our country, when state-owned enterprises did not have sufficient self-supporting independence and the state could widely maneuver their financial resources, there was no urgent need to use insurance as methods of insurance protection of the property and income of these enterprises. The transition to the basics of market economics makes insurance necessary for them.

In the context of the transition of the economy to market relations, the role of insurance in solving the problems of insurance protection of social production and the living standard of the population increases significantly. The period of underestimation of insurance as a method of insurance protection is ending, since insurance is becoming an objectively necessary element of market relations. There is a demonopolization of the insurance business in the country and the formation of the insurance market.

The insurance market is a special sphere of monetary relations, where the object of purchase and sale is a specific service - insurance protection, supply and demand for it are formed.

In the insurance market, the formation and distribution of an insurance fund takes place to ensure insurance protection for society.

The presence of insurance protection stimulates the development of market relations and business activity, and undoubtedly improves the investment climate in the country. That is, any activity is accompanied by a certain risk that must be taken into account, and it is this need that insurance companies are designed to satisfy. Indeed, for a relatively small fee, the policyholder can be sure that if an insured event occurs, the insurer will compensate him for the damage.

The concept of “risk” was first formulated by law in relation to insurance legal relations.

In all developed countries, including Russia, insurance is a strategically important sector of the economy, providing the overwhelming majority of investments in its development and freeing state budgets from expenses for compensation of losses from unforeseen events. The volume of reserves and the terms for which funds are placed turn insurance companies into powerful financial and lending institutions. Through their activities they concentrate enormous financial power in their hands.

Besides, efficient market insurance helps to increase the stability of the economy, provides flexible management of individual and general risks and funds of individual citizens.

Thus, the place of the insurance market is determined by two circumstances. First, there is an objective need for insurance protection, which in turn leads to the formation of an insurance market in the socio-economic system of society. Secondly, the monetary form of organizing the insurance fund for providing insurance protection connects this market with the general financial market.

The place of the insurance market in the financial system is determined both by the role of various financial institutions in the financing of insurance protection, and by their importance as objects for allocating investment resources of insurance organizations and servicing insurance, investment and other types of activities.

Based on the foregoing, it can be stated that the need for insurance protection 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 financial flows in the national economy through the insurance fund.

According to the majority of domestic and foreign scientists, it has not been possible to fully form a stable, balanced insurance market that meets the modern needs of society.

Topic 15 Insurance market

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

Social need for compensation for material losses determines the need to establish economic relations between people in connection with preventing, limiting and overcoming risks.

Place 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 objective need for insurance protection, which leads to the emergence of the economic phenomenon - insurance market. On the other hand, the monetary form of organizing the insurance fund to provide insurance protection connects this market with the general financial market

Insurance is a prerequisite for social reproduction. That's why costs of providing insurance coverage must be included in production costs, which corresponds to 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 organizing insurance relations includes insurance in the general sphere of the financial market.

Universality of insurance determines the direct connection of the insurance market with the finances of enterprises, 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 functioning of the insurance market takes place within the financial system both on partnership terms and in competitive conditions. This concerns the competitive struggle between various financial institutions for the free funds of the population and business entities. If the insurance market offers insurance products, then banks offer deposits, the stock market offers securities, etc.

Functions of the insurance market

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

Compensation function insurance market is expressed in providing insurance protection to legal and individuals in the form of compensation for damage in the event of the occurrence of adverse events that were the object of insurance.

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

Distributive function The insurance market implements an insurance protection mechanism. The essence of this function is 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 stability of insurance.

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

Investment function implemented through the placement of temporarily available funds in securities, bank deposits, real estate, etc.

Insurance market structure

The insurance market is a complex integrated system.

Structure The insurance market is formed from:

insurance organizations;

policyholders;

insurance products;

insurance intermediaries;

professional assessors of insurance risks and losses;

associations of insurers;

systems of state regulation of the insurance market.

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

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

Joint Stock form of insurance companies dominates in developed markets.

Joint stock insurance company- a non-state organizational form in which private capital, registered as a joint-stock company, acts as an insurer. 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 belong to one owner or his family.

IN state insurance The 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 refer to non-profit structures whose activities are based on subsidies. Government insurance organizations specialize in unemployment insurance and compensation for workers and employees who have temporarily lost their jobs.

Mutual Insurance Society− this is a special non-state organizational form that expresses an agreement between a group of individuals or legal entities to compensate each other for future possible losses in certain shares in accordance with established insurance rules. Mutual insurance is a non-profit form of organization of an insurance fund that provides insurance protection for the property interests of members of its society.

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

The product of the insurance market is an insurance product. Promotion and sale of the product in the insurance market is carried out by insurance intermediaries.

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

Universal insurance organizations offer a wide range of insurance services. Since the insurance market involves buying and selling insurance product, then both the promotion of insurance agents on the market and their implementation are necessary. These operations are carried out insurance intermediaries: insurance agents and insurance brokers.

Insurance agents- individuals or legal entities acting on behalf of the insurer and on his 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 insurer. Insurance broker is not a member 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 requires the presence of professional risk and loss assessors - surveyors And adjusters.

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

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

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