The role of insurance companies in the development of the financial market

Анотація

Introduction. The insurance market, being a subsystem of the financial market, contributes to the accumulation of capital for investment activities, as insurers accumulate significant amounts of cash in the course of their core business. Given that insurance companies are participants in the financial system, it is important to study their response to external stress factors and events that affect their financial reliability. Purpose is to analyse the insurance market as an element of the financial market and to substantiate the investment opportunities of insurance companies in terms of insurance reserves. Methods (methodology). The study uses general scientific methods of cognition - methods of generalisation, systematisation, analogies, abstract-logical and comparative analysis, which allowed to substantiate the importance of insurance companies in the financial market of Ukraine. Results. The article analyses the dynamics of the number of life and risk insurance companies and notes a significant reduction in the number of insurance companies, which was mainly due to the liquidation of insurers' licences by the NBU due to failure to fulfil their professional duties. It is established that the insurance market ranks second among other non-banking financial markets in terms of capitalisation, but due to the increase in resources by other financial intermediaries, the share of insurance companies' capital has been declining every year and in 2022 reached its lowest level of 2.32%. The investment opportunities of insurance companies are determined on the basis of an analysis of the formation of insurance reserves of Ukrainian insurers. It is found that the total amount of insurance reserves formed by insurance companies, both technical and mathematical, increased during the analysed period, but the capital of life insurance companies had a downward trend, and the share of life insurance reserves during the analysed period was at the level of 77-82%, and the share of technical reserves was 41-59%. The rating of leaders in the insurance market by the volume of insurance reserves was carried out.

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