Trends in the Development of the Insurance Market of Ukraine in the Conditions of Transformational Changes
Authors:   Mykolayiv National Agrarian University, Allahverdiyeva Iryna 
Published: December 2022

Abstract. Introduction. In modern conditions, the result of globalization processes are rapid changes in the world economic system, in particular in its financial sphere, which cause not only positive but also negative consequences. Therefore, there is an objective need to deepen research on the functioning and identify promising areas of insurance market development. After all, in the process of their activity, insurance companies ensure the formation of effective market mechanisms for attracting investment resources into the national economy. Purpose. The purpose of the study is to study the main trends in the insurance market of Ukraine in modern conditions of transformational change and globalization processes and substantiation of promising areas to increase its efficiency. Results. It is established that the main destructive factors that hinder the development of the insurance market of Ukraine include: reducing the level of solvency and liquidity; lack of a clear business model; unfounded approaches in financial risk management; uncertainty of the strategy and program of formation of financial security of the insurance market as a component of security of the non-banking financial sector and others. During 2011-2021 there is a clear trend to reduce the number of insurance companies. At the same time, the level of insurance penetration and concentration of the insurance market of Ukraine in premiums is much lower than similar world and European countries. Insurance companies belong to high-risk financial institutions. Therefore, the obligatory structural elements of the strategy of strengthening the financial security of the insurance market of Ukraine are substantiated. In addition, the principles of financial risk management in the financial security system of the insurance market are presented. It is established that in order to increase the competitiveness of insurance companies it is necessary to first adapt their business models to digital requirements, modernize major technology platforms, expand analytical capabilities of databases, improve interaction with all members of the insurance ecosystem. Conclusions. Modern dynamic conditions of globalization and a number of destructive factors necessitate the development of a strategy for the formation of financial security of the insurance market of Ukraine, as well as the justification of rational approaches to managing financial risks of insurance companies. It is established that the reorientation of the insurance market to digital technologies is a defining requirement of the transformational world. The period of implementation of digitalization processes causes insurers to move from outdated sales channels of insurance products to find new ways to communicate with customers, develop innovative approaches to the insurance business. We are convinced that the simultaneous development of internetization, individualization and digitalization will provide a synergistic effect in the process of digitalization of the insurance market of Ukraine and bringing it to a qualitatively new level of development in the conditions of transformational changes.