Prospects for the development of the Russian insurance market. Prospects for the development of the insurance market in Russia. Key risks in the insurance market
Non-state educational institution
higher professional education
European-Asian Institute of Management and Entrepreneurship
COURSE WORK
“Russian insurance market: state and prospects for its development”
Ekaterinburg
2010
Introduction
1 General characteristics of the insurance market
1.2 Types of insurance
2 State of the insurance market in Russia
3 Prospects for the development of the insurance market
Conclusion
Application
Bibliography
Introduction
In all developed countries, insurance is a strategically important sector of the economy, providing the overwhelming majority of investments in its development and freeing government budgets from the costs of indemnifying losses from unforeseen events. At the same time, the special role of insurance is manifested in solving social problems of society. Insurers are able to provide social guarantees to the population along with the state, and sometimes even ahead of the state.
Let us consider in more detail the state and prospects of the insurance market in Russia. The main role of insurance is to increase the social security of the population by paying monetary compensation in case of loss of health, life or disability, increasing pensions through the payment of annuities (annuities), as well as providing the population with quality medical care and much more. In turn, high social protection of the population helps to increase confidence in the government and stabilize the political situation, which can be considered a political component of the development of insurance.
From the previous paragraphs, it obviously follows that the development of insurance is the most important activity of the modern Russian state.
Recently, the Federal Assembly and the Russian government have made a number of important decisions in the field of state regulation of insurance. The purpose of these decisions is to overcome the emerging negative trend, which, on the one hand, is associated with an unfavorable demographic situation, and on the other, with the crisis of the redistribution insurance system. However, with an even more detailed analysis of the state of affairs with life insurance in Russia, it becomes obvious that there are still a number of shaky spots in its foundation that need to be eliminated as quickly as possible.
Currently, there are several insurance associations and unions operating in Russia, uniting insurance companies mainly on a geographical basis, the main one of which is the All-Russian Union of Insurers (VUS). Problems of insurance development in Russia are studied and discussed by a wide range of scientists: professional insurers and economists. We can say that the problems of Russian insurance have been worked out quite deeply. Moreover, there is a certain unity of opinion regarding ways to solve these problems. However, different scientists place emphasis differently, giving priority to solving one or another identified problem, while agreeing that only a comprehensive solution to all these problems will allow the Russian insurance system to develop.
The Russian insurance market has great prospects, in our country the insurance system is not developed like in the West, the insurance market has not been fully developed. Economists predict that this risk will develop soon, although at the moment it is significantly slowed down by the financial crisis. The relevance of this topic is justified by the fact that insurance is an effective tool for stabilizing the economy.
Studying the prospects for the development of insurance in our country helps to assess the current place of insurance in the Russian economy. Studying the prospects for the development of insurance can help answer the question why the development of insurance in our country lags behind leading developed countries. Studying the prospects helps to predict the main trends in the development of the Russian insurance market in the future. The object of the study is the insurance market of our country and the processes occurring on it.
The immediate subject of study is the prospects for the development of insurance in Russia. The purpose of the study is to analyze the current state of the insurance market and consider the prospects for the development of insurance in Russia.
Based on the stated goal, it will be necessary to solve the following tasks:
1. Consider the general characteristics of the insurance market;
2. Analyze the state of the insurance market in Russia;
3. Present the prospects for the development of the insurance market.
To cover the topic of the coursework, textbooks, educational literature, Internet resources, data from Rosstat and the Ministry of Finance will be used.
The first chapter of the work will give a general description of the insurance market - concepts, history of development. The second chapter will be devoted to an analysis of the state of the insurance market in Russia based on indicators of recent years. The third chapter will talk about the prospects for the development of the insurance market, as well as the problem of the development of insurance in Russia and possible ways to solve these problems.
1 General characteristics of the insurance market
1.1 The concept of the insurance market, stages of its development
The insurance market is a specific market area that exists in unity with the commodity market, is its variety and develops within the framework of general laws.
The insurance market is the sphere of formation of supply and demand for insurance services. It expresses the relationship between various insurance organizations (insurers) offering relevant services, as well as legal entities and individuals in need of insurance protection (policyholders).
Just like the market for any other goods, works, services, the insurance market is subject to cyclicality, economically natural fluctuations in the rise and fall of prices for insurance services. [No. 5 p. 87]
Stages of development of the insurance market in Russia.
Insurance in Tsarist Russia 1786-1917;
Stage 1: collapse of the principle of state insurance monopoly and the ideas of state insurance.
Stage 2: the formation of insurance in Russia, associated with the beginning of the formation of the national insurance market and the emergence of private joint-stock companies.
Stage 3: the emergence of the national insurance market.
Stage 4: the emergence of new types of mutual insurance among landowners and manufacturers.
Insurance in Soviet Russia 1917-1991. (meaning the territory of the former USSR);
nationalization of the insurance business:
Stage 1: establishing state control over all types of insurance
Stage 2: declaring insurance in all types and forms a state insurance monopoly.
Insurance in the Russian Federation after 1991 (meaning the major geopolitical changes of recent times).
In the early 90s, the revival of the national insurance market began in the Russian Federation, which continues to this day. The legislative basis for the legal regulation of the national insurance market was laid by the Law of the Russian Federation “On Insurance” of November 27, 1992, which came into force on January 12, 1993. At the same time, Rosstrakhnadzor was created - the Federal Service of Russia for the Supervision of Insurance Activities, which was given control functions of the domestic insurance market. In 1996, Rosstrakhnadzor was transformed into the Department of Insurance Supervision of the Ministry of Finance of the Russian Federation.
In 1996, the Government of the Russian Federation adopted the Resolution "On priority measures for the development of the insurance market in the Russian Federation", which provides for a number of measures aimed at improving tax legislation related to insurance activities, as well as the participation of international financial organizations in financing development activities insurance market in Russia. In 1997, a special target program for the development of insurance and reinsurance of risks from major industrial accidents, catastrophes and natural disasters was developed. Improvement of the insurance market continues.
Insurance in Russia has gone through several stages of development. Major geopolitical changes that followed the collapse of the former USSR caused an objective need to revive the national insurance market in Russia; let’s consider how insurance is classified for further analysis.
1.2Types of insurance
There are several types of insurance:
1) Property insurance
Legal entities and individuals can enter into insurance contracts for objects in respect of which they have a property interest: buildings, structures, transmission devices, power workers and other machines, equipment, vehicles, fishing and other vessels, fishing gear, objects of work in progress and capital construction, inventory, finished products, goods, raw materials, materials and other property.
· Apartment insurance - the risk of destruction or damage to property (including mortgage insurance) as a result of events such as flooding, fire, illegal actions of third parties, natural disaster, theft of property, including household appliances.; 2) the risk of civil liability to third parties for causing harm to life and health and damage to their property; 3) the risk of unexpected expenses for rental housing as a result of destruction (damage) of property.
· Fire risks and risks of natural disasters - standard risks for this type of property insurance are as follows: losses in case of loss or damage to property from fire, lightning, explosion, flood, earthquake, subsidence, storm, hurricane, rain, hail, collapse, landslide , the effects of groundwater, mudflows, severe frosts and heavy snowfalls unusual for the area, power outages caused by natural disasters, accidents of vehicles, heating, water supply, sewer and other systems, water penetration from a neighboring premises, burglary, illegal actions third parties.
· Business interruption insurance - insurance against damage caused by a stoppage of production due to the occurrence of an event that is insured under a property insurance contract. The Insured's losses from business interruption are compensated, consisting of profits lost as a result of a reduction in the turnover of production of products, works, services and expenses for continuing the insured business activity.
· Insurance of construction and installation risks - insurance of construction and installation works, including all materials used for this, construction site equipment and construction equipment, construction machines, costs of clearing the territory, waste removal, auxiliary.
· Vehicle insurance - insurance that is designed to protect the property interests of the insured associated with the costs of restoring a vehicle after an accident, breakdown or purchasing a new car after theft or theft.
· Cargo insurance - insurance of the property interests of the cargo owner. Provides for compensation for losses caused by damage or loss of cargo (goods) transported by various modes of transport.
2) Liability insurance
When insuring liability, the object of insurance is property interests associated with compensation by the policyholder (insured person) for damage caused to the life, health or property of third parties.
· Insurance of general civil liability to third parties - the object of insurance of general civil liability to third parties is the liability of the Policyholder/Insured for damage to property, life and health of third parties. Liability insurance is the provision of insurance protection in the event that third parties present claims to the insured in accordance with the norms of current legislation regarding compensation for property damage.
· Liability insurance of a product manufacturer, a service provider - the object of civil liability insurance of a product/service manufacturer is his liability for possible damage to person or property that arose as a result of the use of the product/service produced by him.
· Directors & Officers liability insurance (D&O) - the object of directors' and officers' liability insurance is the liability of company managers for possible damage to the company's shareholders as a result of errors made in the management of the company.
· Professional liability insurance - the object of professional liability insurance is the erroneous actions of professionals, as a result of which events may occur that lead to damage.
· Employer's liability insurance - the object of employer's liability insurance is liability for possible damage to property, life and health of its employees.
· Liability insurance for environmental damage - the object of liability insurance for environmental damage is liability for sudden and unforeseen damage to the environment that occurred as a result of the actions of the Policyholder/Insured.
· Contractual liability - the object of contractual liability insurance is the liability arising from the contract concluded between the Policyholder/Insured and his counterparty.
· Motor vehicle owner liability insurance - civil liability insurance involves compensation for damage to the party injured in a motor vehicle accident due to the fault of the Policyholder/Insured. The insurer pays the actual expenses caused by the insured event, but not more than the insured amount provided for in the insurance contract.
· Liability insurance of the owner of a vehicle when traveling abroad (Green Card) - insurance of civil liability of the owner of a vehicle traveling abroad with his car.
3) Personal insurance
Personal insurance includes all types of insurance associated with probabilistic events in the life of an individual. The personal insurance industry includes types of insurance in which the object of insurance is property interests related to the life, health, ability to work and pension provision of the policyholder or the insured.
· Endowment life insurance, pension insurance - life insurance includes all types of insurance where human life is the object of insurance. But since it is impossible to determine how much a person’s life is worth, insurance organizations focus on the client’s income. The object of protection is not so much a person’s life as a person’s income. On average, the amount of insurance protection ranges from 3 to 10 annual income of the client. Life insurance contracts are concluded for a period of at least one year. Life insurance can cover a variety of risks. This is insurance against accidents, disability, partial loss of ability to work, and critical illness (oncology, etc.). Thus, life insurance liability insurance provides for payment of the insured amount in the following cases: if the insured survives until the end of the insurance period; in case of loss of health; upon the death of the insured.
Separately, pension insurance should be highlighted. This is life insurance with savings, but the end of the program term is tied to the person's retirement age.
· Accident insurance - accident insurance is intended to compensate for damage caused by loss of health or death of the insured. It can be carried out in group (for example, insurance of enterprise employees) and individual forms, as well as in forms of voluntary and compulsory insurance.
· Medical insurance - guarantees citizens, in the event of an insured event, to receive medical care from accumulated funds and to finance preventive measures. Health insurance can be in the form of compulsory and voluntary insurance.
· Insurance for traveling abroad - provides the policyholder with protection against damage to their property, life and health when traveling abroad. Insurance risks may include: accident package coverage, medical expenses including dental, surgery, medical evacuation, funeral compensation, repatriation of remains, emergency hotel expenses, travel/replacement of a business colleague in an emergency, emergency call for a family member, cancellation or trip interruption, jail bail, delayed and lost luggage, flight delay, hijacking, civil liability, assault, kidnapping.
4) Insurance of financial and specific risks
· Insurance of non-fulfillment of financial obligations - insurance of losses incurred as a result of non-fulfillment of obligations by the counterparty.
· Title insurance - loss of property due to loss of property rights on the basis of a final decision of the court of first instance on claims of third parties.
· Political risk insurance - insurance of losses incurred as a result of the actions of government officials (not particularly widespread in the CIS countries)
1.3 Basic concepts of insurance
In accordance with the Law of the Russian Federation dated November 27, 1992 N 4015-1 (as amended on October 16, 2010) “On the organization of insurance business in the Russian Federation,” insurance is a relationship to protect the interests of individuals and legal entities, the Russian Federation, constituent entities of the Russian Federation and municipal formations upon the occurrence of certain insured events at the expense of monetary funds formed by insurers from paid insurance premiums (insurance contributions), as well as at the expense of other funds of insurers. And the insurance market is a special socio-economic structure that unites various entities that pursue their specific interests and perform certain functions.
Insurance is carried out in the form of voluntary insurance and compulsory insurance.
Voluntary insurance is carried out on the basis of an insurance contract and insurance rules that determine the general conditions and procedure for its implementation. Insurance rules are adopted and approved by the insurer or an association of insurers independently in accordance with the Civil Code of the Russian Federation and this Law and contain provisions on the subjects of insurance, on the objects of insurance, on insured events, on insurance risks, on the procedure for determining the insured amount, insurance tariff, insurance premium (insurance premiums), on the procedure for concluding, executing and terminating insurance contracts, on the rights and obligations of the parties, on determining the amount of losses or damage, on the procedure for determining insurance payment, on cases of refusal of insurance payment and other provisions.
Insurers are legal entities created in accordance with the legislation of the Russian Federation to provide insurance, reinsurance, mutual insurance and received licenses in the manner prescribed by law.
Insurer representative is a separate division of the insurer (branch) or another insurer that considers applications from victims and pays them insurance benefits.
Policyholder is an individual or legal entity who is a party to the insurance contract, who pays the insurance premium and has the right by law or by virtue of the contract to receive compensation upon the occurrence of an insured event within the limits of the insured liability or the insured amount specified in the insurance contract. The policyholder can conclude an insurance contract both in his own favor and in favor of another person (the beneficiary).
Sum insured is an amount of money that is established by federal law and (or) determined by an insurance contract and on the basis of which the amount of the insurance premium (insurance contributions) and the amount of insurance payment upon the occurrence of an insured event are established.
Insurance payment is an amount of money established by federal law and (or) an insurance contract and paid by the insurer to the policyholder, insured person, beneficiary upon the occurrence of an insured event.
The insurance premium (insurance contributions) is paid by the policyholder in the currency of the Russian Federation, except for cases provided for by the legislation of the Russian Federation on currency regulation and currency control.
Insurance contract is an agreement between the policyholder and the insurer, establishing their mutual rights and obligations for a specific type of insurance. An insurance contract in favor of a third party establishes the right of claim for a third party who did not participate in the conclusion of the contract. The execution of such an agreement may be demanded by both the party who entered into it and a third party in whose favor the execution is stipulated, unless otherwise provided by law, the agreement and does not follow from the essence of the obligations.
Objects of insurance are property interests that do not contradict Russian legislation: those related to the life, health, ability to work and pension provision of the policyholder or the insured person (personal insurance); related to the ownership, use, and disposal of property (property insurance); related to compensation by the insured for damage caused to the person or property of an individual, as well as damage caused to a legal entity (liability insurance).
An insured event is an event that has occurred, provided for by an insurance contract or by law, upon the occurrence of which the insurer becomes obligated to make an insurance payment to the policyholder, the insured person, the beneficiary or other third parties.
Civil liability insurance is liability for harm or damage that may be caused to property or the health and life of third parties as a result of the use of dangerous objects or the management of such objects (for example, means of transport). Liability may also arise from an unintentional tort or breach of contract.
Fluency in insurance terms and the ability to apply them in one’s practical work is one of the main criteria for high professionalism of an insurance specialist. Now knowing them, we can further analyze the insurance market of the Russian Federation.
2 State of the insurance market in Russia
2.1 Current state of the Russian insurance market
The prerequisites for the development of the insurance business in our country were:
Strengthening the non-state sector of the economy;
Growth in the volume and variety of private property of individuals and legal entities as a source of demand for insurance services. At the same time, the development of the real estate and mortgage lending markets, as well as the privatization of public housing stock, is important.
Reduction of the once comprehensive guarantees provided by the state social insurance and social security system. Today, the lack of guarantees must be compensated for by various forms of personal insurance.
The social development of Russia has necessitated the transition to an insurance market, the functioning of which is based on the knowledge and use of economic laws, such as the law of value, the law of supply and demand.
In a nationalized socialist economy, the need for insurance was minimal. During the transition to a market economy, the need for insurance increases sharply, creating the basis for the rapid development of the insurance market. Currently, the demand for insurance protection has three main sources. Firstly, this is a non-state sector of the economy, which has a natural need for insurance due to its insecurity and inability to qualify for government financial support. However, the unsatisfactory financial situation of most enterprises in the context of a protracted economic crisis and depression does not contribute to a massive increase in demand on their part. To a large extent, the existing demand is due to the mandatory nature of certain types of insurance (insurance of state-owned non-residential property for rent) and the use of insurance schemes that allow policyholders to avoid excessively high taxes.
Until recently, the financial conditions of insurance established by the state prevented its use by legal entities. Almost all expenses for paying insurance premiums came from the net profit of the enterprises. Since 1996, it was allowed to attribute insurance costs to the cost of products and services in the amount of 1% of the volume of products sold; later, in mid-2000, this standard was increased to 3%. With the introduction of Chapter 25 of the Tax Code of the Russian Federation, starting in 2002, the ability of enterprises to attribute insurance costs to cost has been significantly expanded in both property and personal insurance.
The second source of demand for insurance services is associated with the privatization of the housing stock, the reform of housing and communal services, the development of individual housing construction and the growth of well-being of a certain part of the population. For the privatized housing stock, the share of which in the total number of apartments is already over 30%, the need for insurance is indisputable. The only issue is the appropriate organizational forms, and in particular the full implementation of the Federal Law “On Homeowners' Associations,” adopted in May 1996.
The third source of demand for insurance protection is the general public. The guarantees provided by the state social insurance system are significantly below the standard of living. The state relieves itself of the obligation of permanent guardianship over its citizens, giving them previously seen freedom of action. Under these conditions, the need for various forms of personal and property insurance inevitably increases, guaranteeing support for citizens and households in critical situations, material support in old age, the provision of quality medical services, and much more.
In 2002, 1,408 insurance companies were officially registered in the State Register, of which 1,176 actually operate in the insurance market. In dynamics, their number is noticeably decreasing due to an increase in the minimum amount of authorized capital and natural processes of capital concentration.
In the Russian insurance market already in the mid-90s. private capital predominated. Of the total number of insurance organizations, private companies accounted for 36%, mixed ownership - 58, state - 5, municipal - 1%. Since 2000, there has been a tendency for the state to withdraw from the insurance market, expressed in the sale of blocks of shares owned by the state in the capital of large insurance companies. For example, Rosgosstrakh was transferred to the management of Troika Dialog, and a decision was made to withdraw the state from among the owners of Ingosstrakh.
Currently, in addition to Rosgosstrakh and Ingosstrakh, the state indirectly participates in the capital of insurance companies Guta-Strakhovanie, Inkasstrakh, Emergency SK, SK Law Enforcement Agencies, and Russian Insurance Center.
The share of compulsory insurance in total revenues is about 21%. The structure of voluntary insurance is presented as follows: life insurance - 44%, other types of personal insurance - 13%, property insurance - 38%, liability insurance - 5%.
2.2 Analysis of the insurance market in Russia
The number of operators in the market continues to decline. As of March 31, 2010, 685 insurance organizations were registered in the Unified State Register of Insurance Business Entities. Of these, 13 did not conduct insurance operations and 24 did not submit a report on their activities. A year earlier, 768 companies operated on the market, i.e. the total number of insurers decreased by 83 companies, which is 12% of the total number of operating insurance organizations.
The number of companies that are on the market but do not collect insurance premiums (their fees are zero) remains at the same level. In the 1st quarter of 2009, there were 58 such companies, and in the 1st quarter of 2010 - 57.
The dynamics of the total number of insurance companies on the market is presented in the graph.
(Picture 1)
There is still a trend towards increasing concentration of insurance business in the market. In the market as a whole (with compulsory medical insurance), the top ten collect 46% of premiums (3 percentage points higher than last year), the top one hundred collect 90% of total premiums. In the voluntary insurance market, combined with compulsory motor liability insurance, the concentration is higher and is also growing compared to the 1st quarter of 2009. 10 companies collect 58% of the total volume (an increase of 4 percentage points), 100 companies – 92%.
Table 1 - Dynamics of concentration of insurance companies on the market in 2009-2010.
The number of large insurers with a market share of more than 1% is decreasing compared to last year. However, the total volume of premiums that these companies collect remains at the same level - 60% for the market with compulsory medical insurance and 70% for voluntary insurance in the amount of compulsory motor liability insurance.
Table 2 - Dynamics of the number of insurance companies with a market share of more than 1%
Calculations show that market concentration in terms of the share of concluded contracts is higher than in terms of the volume of premiums collected. The first 10 companies conclude more than half of all contracts, the share of 100 companies is 95-96%.
The total volume of premiums in the 1st quarter of 2010 amounted to 257.7 billion rubles, which is 6.2% higher than the level of the previous year. The volume of insurance payments increased by 6.4% compared to last year and amounted to 173.8 billion rubles. In the 1st quarter of 2010, there was an increase in all types of insurance, with the exception of property insurance premiums (decreased by 2%) and life insurance payments (decreased by 6.7%). The growth of the insurance market was ensured by the growth of both voluntary and compulsory types of insurance.
In the 1st quarter of 2010, the share of obligatory species decreased compared to 2009. Mandatory types in the 1st quarter account for 53% of the total premium volume, voluntary, respectively, 47%. A year earlier, mandatory types occupied 52% of the market, i.e. the structure has remained virtually unchanged.
Table 3 - Dynamics of the Russian insurance market in 2009-2010.
| Insurance activity indicators | 1st quarter 2009 | 1st quarter 2010 | Growth | |
| Total insurance premium | Premiums, billion rubles | 242,7 | 257,7 | 6,2% |
| Payments, billion rubles | 163,4 | 173,8 | 6,4% | |
| Premiums, billion rubles | 116,2 | 121,3 | 4,4% | |
| Payments, billion rubles | 48,7 | 50,5 | 3,7% | |
| Life insurance | Premiums, billion rubles | 4,1 | 4,4 | 7,3% |
| Payments, billion rubles | 1,5 | 1,4 | -6,7% | |
| Personal insurance | Premiums, billion rubles | 41,5 | 46,3 | 11,6% |
| Payments, billion rubles | 13,2 | 13,9 | 5,3% | |
| Property insurance | Premiums, billion rubles | 64,9 | 63,6 | -2,0% |
| Payments, billion rubles | 33,4 | 34,6 | 3,6% | |
| Liability Insurance | Premiums, billion rubles | 5,7 | 6,9 | 21,1% |
| Payments, billion rubles | 0,6 | 0,61 | 1,7% | |
| Premiums, billion rubles | 126,5 | 136,4 | 7,8% | |
| Payments, billion rubles | 114,7 | 123,3 | 7,5% | |
| Compulsory medical insurance | Premiums, billion rubles | 103,8 | 111,5 | 7,4% |
| Payments, billion rubles | 102,2 | 108,8 | 6,5% | |
| OSAGO | Premiums, billion rubles | 16,7 | 18,7 | 12,0% |
| Payments, billion rubles | 11,2 | 13,0 | 16,1% | |
| Premiums, billion rubles | 132,9 | 140,0 | 5,3% | |
| Payments, billion rubles | 59,9 | 63,6 | 6,2% |
Dynamics of the insurance premium structure in the 1st quarter of 2009-2010. presented in the following graph. More than 40% is occupied by compulsory medical insurance, property insurance is in second place - 24%, followed by personal insurance - 18%. The share of personal insurance increased slightly (from 17% to 18%), the share of property insurance also decreased slightly (from 26.8% to 24%), otherwise the structure of the insurance market remained unchanged.
(Figure 2)
In the 1st quarter of 2010, the majority of the total insurance premium excluding compulsory medical insurance falls on insurance of legal entities (64%), insurance of citizens occupies a little more than a third of the market - 36%. Premiums for life insurance consist of 75% of the population's funds, for personal insurance - 15%, for property insurance - 42%, for liability insurance - 16%.
Table 4 - Share of premiums at the expense of the population.
| Insurance type | Share of premiums at the expense of the population |
| Total without compulsory medical insurance | 36,4% |
| Personal insurance for everything | 20,5% |
| Whole life insurance | 75,4% |
| Including: | |
| - in case of death, survival to a certain age or period, or the occurrence of another event | 83,9% |
| - with the condition of periodic insurance payments (rents, annuities) and (or) with the participation of the policyholder in the investment income of the insurer | 84,1% |
| - pension insurance | 7,1% |
| Personal insurance (except life insurance) | 15,2% |
| Including: | |
| - NS | 48,7% |
| - VHI | 8,4% |
| Property insurance for everything | 39,7% |
| Property insurance (without liability insurance) | 42,3% |
| Including | |
| - means of ground transport | 77,6% |
| - means of railway transport | 0,0% |
| - means of air transport | 0,7% |
| - means of water transport | 0,2% |
| - cargo insurance | 0,5% |
| - agricultural insurance | 5,0% |
| - insurance of property of legal entities and individuals | 15,4% |
| Liability Insurance | 16,4% |
| Including: | |
| - civil liability insurance for owners of land vehicles | 59,3% |
| including | |
| -- except for insurance within the framework of international insurance systems | 57,5% |
| -- within the framework of international insurance systems | 61,8% |
| - civil liability insurance of owners of railway transport vehicles | 6,3% |
| - civil liability insurance for owners of air transport vehicles | 0,1% |
| - civil insurance of owners of water transport vehicles | 0,2% |
| - OPO | 0,0% |
| - GO for contractual obligations | 0,7% |
| - other types of liability | 16,2% |
| Insurance of business and financial risks | 42,7% |
| Compulsory personal insurance for passengers (tourists, excursionists) | 0,0% |
| Compulsory personal insurance for tax officials | 0,0% |
| Compulsory personal life and health insurance for military personnel and persons equivalent to them | 0,0% |
| OSAGO | 79,2% |
The structure of premiums for voluntary types of insurance is presented in the graphs. In life insurance, 75% of premiums are insurance in the event of death, survival to a certain age or term, or the occurrence of another event. In personal insurance, 83% is voluntary health insurance. In property insurance premiums, the main part is taken by ground transport insurance (hull insurance) - 46% and property insurance of legal entities and citizens (fire) - 44%.
(Figure 3)
(Figure 4)
(Figure 5)
(Figure 6)
In the market as a whole, in the 1st quarter of 2010 the level of payments remained at the same level – 67%. In voluntary insurance, there is a decrease in the level of payments compared to the 1st quarter of 2009, with the exception of property insurance. Also, the level of payments in compulsory motor liability insurance increased by 2 percentage points.
In the total market without compulsory medical insurance, a reduction in the number of companies with a payment level of more than 100% was recorded - 72 companies in the 1st quarter of 2009 versus 57 in the 1st quarter of 2010.
Table 5 - Dynamics of the level of payments in 2009-2010
| Types of insurance and insurance activities | 1st quarter 2009 | 1st quarter 2010 | Change |
| Total insurance premium | 67,3% | 67,4% | 0.1 p.p. |
| Voluntary insurance - total | 41,9% | 41,6% | -0.3 p.p. |
| Life insurance | 36,6% | 31,8% | -4.8 p.p. |
| Personal insurance | 31,8% | 30,0% | -1.8 p.p. |
| Property insurance | 51,5% | 54,4% | 2.9 p.p. |
| Liability Insurance | 10,5% | 8,8% | -1.7 p.p. |
| Mandatory insurance - total | 90,7% | 90,4% | -0.3 p.p. |
| Compulsory medical insurance | 98,5% | 97,6% | -0.9 p.p. |
| OSAGO | 67,1% | 69,5% | 2.5 p.p. |
| Voluntary insurance + OSAGO | 45,1% | 45,4% | 0.4 p.p. |
The concentration of insurance companies in terms of payments in the 1st quarter of 2010 compared to the 1st quarter of 2009 is growing, however, it is higher than the concentration in premiums. The 10 leading companies pay 49% of the total amount of compensation in the market as a whole, for voluntary insurance with compulsory motor liability insurance – 60%. A hundred companies pay almost the entire amount - 93.6% on the total market, 94.5% on the DS+OSAGO market.
Table 6 - Dynamics of concentration of insurance companies in terms of payments in 2009-2010.
The total number of companies with a share in compensation payments of more than 1% is decreasing compared to the 1st quarter of 2009; the total share of payments from this group of insurers remains at the same level.
Among existing contracts, the majority of the portfolio is occupied by compulsory motor liability insurance (45%), with personal insurance in second place – 23%. Among the concluded contracts, 44% is personal insurance, which is explained by the large number of accident insurance policies sold to passengers on railway transport (more than 83% of all concluded personal insurance contracts). OSAGO is in second place in the structure of concluded contracts - about 31% of the total number of contracts.
The structure of the insurance portfolio under concluded and existing contracts in the 1st quarter of 2010 is presented in the graph.
(Figure 7)
90% of concluded and valid contracts in the 1st quarter of 2010 were contracts with individuals.
The total volume of insurance premiums accepted for reinsurance amounted to 9.67 billion rubles, which is 20% less than in the previous year. The reinsurance market has seen a reduction in premiums and payments compared to the 1st quarter of 2009. In total, 78% of the total volume of premiums is accepted for reinsurance in the Russian Federation.
Table 7 - Dynamics of the Russian reinsurance market in 2009-2010.
| Type of insurance activity | Insurance activity indicator | 1st quarter 2009 | 1st quarter 2010 | Growth |
| According to contracts accepted for reinsurance – total | Premiums, billion rubles | 10,76 | 9,67 | -10,1% |
| Payments, billion rubles | 3,95 | 2,45 | -38,0% | |
| DS | Premiums, billion rubles | 10,72 | 9,65 | -10,0% |
| Payments, billion rubles | 3,93 | 2,45 | -37,7% | |
| DS+OSAGO | Premiums, billion rubles | 10,76 | 9,67 | -10,1% |
| Payments, billion rubles | 3,95 | 2,45 | -38,0% | |
| Including on the territory of the Russian Federation - total | Premiums, billion rubles | 7,53 | 7,51 | -0,3% |
| Payments, billion rubles | 2,74 | 1,64 | -40,1% | |
| DS | Premiums, billion rubles | 7,50 | 7,49 | -0,1% |
| Payments, billion rubles | 2,72 | 1,64 | -39,7% | |
| DS+OSAGO | Premiums, billion rubles | 7,53 | 7,51 | -0,3% |
| Payments, billion rubles | 2,74 | 1,64 | -40,1% | |
| Including outside the Russian Federation - total | Premiums, billion rubles | 3,22 | 2,16 | -32,9% |
| Payments, billion rubles | 1,21 | 0,81 | -33,1% |
3 Prospects for the development of the insurance market
The forecasts in the context of the global crisis are not encouraging. Thus, the heads of the Federal Insurance Supervision Service (FSSN) and the Russian Union of Auto Insurers (RUA) called on market participants to prepare for the worst. The most optimistic forecast for two to three years is annual market growth of 5%.
The Russian insurance market may increase fivefold by 2010 and reach $74.9 billion.
It is assumed that this scenario is realistic and is based on a 25 percent rate of increase in insurance premiums. The BCC forecast contains two more options for the development of the situation in the insurance market - optimistic and pessimistic. The first of them projects the growth rates of insurance premium receipts achieved over the past five quarters for the future period. In this case, the volume of insurance premiums by 2010 could reach $165 billion. This corresponds to the size of the Western European insurance market in 1984.
The pessimistic scenario assumes 10 percent growth in the insurance business (adjusted for inflation). In this case, by 2010 the volume of the Russian insurance market will be only $37.5 billion. This is higher than the current figure for Belgium, but inferior to the Dutch figure.
“Insurance will remain one of the fastest growing segments of the Russian economy, which will maintain positive dynamics even during a possible slowdown in overall economic growth,” the union notes.
“Maintaining high rates of development of the insurance industry will be facilitated by the presence of a large number of uninsured objects, the spread of an insurance culture, the need to protect property interests, enterprises and citizens, the spread of consumer lending, mortgages, leasing schemes, the introduction of new types of insurance and insurance products, and increasing the level of management culture in Russian insurance companies."[link to literature]
According to the forecast, by 2010 the BCC member companies will account for 90-95% of all classic insurance transactions carried out on the Russian market.
BCC was created 10 years ago. Currently, 228 insurance companies and 17 associations of insurers are members of the Union.
According to the adjusted forecast, the volume of the insurance market at the end of 2010 will approach its pre-crisis level and amount to about 550 billion rubles, which is 6.9% more than the level of 2009, but 1.1% less than in 2008.[“Expert RA” »link to internet resource]
The following segments of the Russian insurance market are far from emerging from the crisis:
· Motor hull insurance (the drop in premiums compared to 2008 will be -31.7 billion rubles or -19%).
· Insurance of property of legal entities against fire and other risks (the drop in premiums compared to 2008 will be -7.3 billion rubles or -12%).
· Insurance of agricultural risks (the drop in premiums compared to 2008 will be -5.4 billion rubles or -36%).
· Cargo insurance (the drop in premiums over 2 years will be -1.2 billion rubles or -6%).
By the end of 2010, the segment of accident and illness insurance (+3% compared to 2008), life insurance (+2%) and travel insurance (+3%) will reach pre-crisis levels.
The final recovery of the market in terms of premium volumes collected should be expected in 2011. As for the financial condition of insurers, the consequences of the crisis will be felt for several more years. In 2012, with the entry into force of the new law on public health insurance and the implementation of other measures to stimulate demand for insurance, a new stage of rapid growth of the Russian insurance market will begin.
As a result, the volume of the Russian insurance market in the first half of 2010 amounted to 285.5 billion rubles (521.0 billion rubles including payments for compulsory medical insurance), for personal types of insurance (except life insurance) - 73.5 billion rubles, for property types of insurance (including insurance of business and financial risks) - 138.9 billion rubles, liability insurance - 14.1 billion rubles.
However, there is still a long way to go until the market fully recovers. The negative dynamics of growth rates in property types of insurance is associated with the persistence of problems in the motor hull insurance market. Tariffs in corporate insurance also did not increase, and the growth of premiums in this segment is due to captive insurance. In this regard, it is premature to talk about a full recovery of the insurance market. The absolute value of the collected amount of insurance premiums in the first half of 2010 (285.5 billion rubles) did not reach the pre-crisis value of the first half of 2008 (295.6 billion rubles).
The largest increase in premiums was observed in personal insurance. Starting from the third quarter of 2009, the growth rate of premiums for personal types of insurance (excluding life insurance) became positive. In the 3rd and 4th quarters of 2009, the growth rate of premiums for personal types of insurance was approximately at the same level and amounted to 2.9% and 2.4%, respectively. Having increased to 11.4% in the 1st quarter of 2010, the growth rate of contributions reached its maximum values over the last four quarters in the second quarter of 2010 and amounted to 16.7%. Thus, the growth rate of premiums in personal types of insurance returned to the pre-crisis level of the 3rd quarter of 2008 (16.1%). The sharp increase in the growth rate of premiums for personal types of insurance in the first quarters of 2010 is associated with the seasonality of the VHI market. Corporate voluntary health insurance contracts are renegotiated in the first quarter of the year; the increase in premiums in the second quarter is associated with an increase in mortgage insurance of borrowers against accidents and illnesses. A significant contribution to the growth of fees for personal types of insurance is made by the growth of VHI tariffs.
The growth rate of insurance premiums for compulsory motor liability insurance over the last 4 quarters decreased from 12.7% in the 3rd quarter of 2009 to 6.3% in the 2nd quarter of 2010. The reduction in the growth rate of compulsory motor liability insurance is due to the fact that the extension of almost all compulsory motor liability insurance contracts at tariffs with new adjustment factors introduced on March 25, 2009 is almost completed; now growth occurs only due to an increase in the vehicle fleet.
The following types of insurance made the greatest contribution to market growth in the first half of 2010:
· Voluntary medical insurance (+5.3 billion rubles or +10.7% in terms of the growth rate of contributions).
· OSAGO (+3.6 billion rubles or +9.0%).
· Accident insurance (excluding passenger insurance) (+2.7 billion rubles or +21.5%).
· Property insurance for individuals (+1.9 billion rubles or +22.5%).
· Life insurance (+1.8 billion rubles or +26%).
The insurance market was prevented from growing even further by the following types of insurance, which showed negative growth rates of insurance premiums in the first half of 2010:
· Motor hull insurance (-4.98 billion rubles or -7.3%).
· Insurance of property of legal entities against fire and other risks (-1.3 billion rubles or -4.0%).
· Insurance of agricultural risks (-1.1 billion rubles or -16.1%).
The average growth rate of insurance and reinsurance premiums in the first half of 2010 compared to the first half of 2009 was 4.2%.
The highest growth rate of premiums in the first half of 2010 was demonstrated by captive insurance companies – 19.1%. Such high rates of growth in premiums for this group of insurers indicate an increase in insurance costs for the real sector companies that own them.
The growth rate of insurance premiums collected by large universal insurance companies at the federal level in the first half of 2010 is at the level of average market values.
In the first half of 2010, both premiums collected by non-retail companies (+6%) and premiums from retail insurers (+2.8%) increased. The growth rate of contributions from retail companies at the end of 2009 was negative and amounted to minus 12%. The growth in premiums collected by retail companies is associated with the weakening of dumping, the gradual restoration of bancassurance and the realization of pent-up demand.
The concentration of the insurance market continues to grow. In the first half of 2010, compared to the first half of 2009, the share of companies from the top 5 increased from 38.6% to 41.7%, the share of the top 20 - from 67.6 to 70.2%.
Reasons that influenced the growth of insurance market concentration:
· M&A: AlfaStrakhovanie company acquired the Avikos-AFES group.
· Reorganization. In 2009-2010, there was a surge in reorganization within insurance groups and mergers of companies within the group under one legal entity (MSK insurance group, Rosgosstrakh system (including Russkiy Mir), SOGAZ group and Sheksna group, SG "UralSib" and "SKPO-Uralsib").
More informed choice on the part of policyholders. During the crisis, some policyholders reconsidered their attitude towards risks and the level of reliability of insurance companies to which risks are transferred. In this regard, the share of companies with an Expert RA rating of A++ increased in the first half of 2010 compared to the first half of 2009 by 7.4 percentage points, reaching 62.2%.
Migration of top management teams, sales and insurance agents. The deterioration in the financial stability of insurers, which showed strong results and significant growth before the crisis, and the reduction in company costs for doing business forced employees of insurance companies to look for more promising jobs in larger and more reliable companies. As a rule, clients of insurance agents migrate after him to new insurance companies; large clients often follow top managers of companies who have earned trust over the years of cooperation if they move to a new place of work.
The financial stability of many companies was shaken during the crisis. Some were forced to leave the market. The FSSN policy indicates the desire of the regulatory authorities to clear the insurance market of unreliable insurers. The “natural selection” of insurance companies will accelerate with the entry into force of amendments to increase the size of the authorized capital of insurance companies from January 1, 2012. To fully analyze the development of the insurance market in Russia, you need to look at the development trend of foreign insurance organizations in the Russian market.
Speaking about the processes of integration of Russian insurance into the global economy, this usually means the arrival of foreign insurers on the Russian market and the impact that they will have, or rather, are already having on its development. The Russian market is very promising for foreign companies, and every year they conquer new frontiers here.
In 2007, a breakthrough occurred in the insurance market, where foreign investors had not previously been overly active. Foreign companies have proven that they are willing to pay good money for a ticket to the promising Russian insurance market. The largest European players set their sights on industry leaders: in February, the German Allianz bought control of Rosno, valuing the entire company at $1.5 billion, and in December, the French Axa announced the purchase of a 36.7% stake in RESO-Garantiya for 810 million euros . RESO's valuation of 2.2 billion euros ($3.1 billion) is amazing: foreigners have never promised such money to their Russian owners. Until recently, the owners of RESO - brothers Sergei and Nikolai Sarkisov - valued the entire company at $2 billion.
Foreigners are buying up insurers not only from the top ten in terms of premiums. Swiss Zurich Financial Services acquired 66% of Nasta, valuing the company at $400 million. And Allianz did not stop at Rosno, purchasing Progress-Garant at the same time (the transaction amount was not disclosed). According to Russian insurers and consultants, American and Japanese insurers are eyeing our market.
Based on international experience, the following facts testify in favor of foreign participation in the Russian insurance market.
1. Improving services in the insurance sector. Foreign insurers contribute to increased competition, which leads to cheaper insurance services and increased efficiency.
2. Transfer of new technologies and know-how. Foreign insurers organize their activities in accordance with national legislation, creating joint ventures or branches and divisions. The local personnel involved must have a good education and, having gained experience in an organization with foreign participation, when changing jobs, they will distribute more advanced skills among national insurance companies.
3. Accumulation of national savings. The presence of more efficient insurers in the market should increase savings rates and provide new channels through which those savings can be invested.
4. Influx of new capital. A foreign insurer, purchasing an existing company or establishing a new one, will have to import capital not only for the purpose of purchasing office premises and equipment, but also in order to ensure the amount of authorized capital required by law. Foreign insurers can also provide greater security to policyholders through significant capital and insurance reserves.
5. Risk distribution. Foreign insurers, if authorized, usually reinsure risks abroad. As a result, if an insured event occurs, for example, with a ship or aircraft, and the risk was reinsured, the loss will be paid by the foreign reinsurer, and the result of settling the claim will be an influx of capital.
6. Improving regulation of the insurance sector. The efficient functioning of the market in the interests of insurers and policyholders is directly related to a clear and transparent regulatory system. The presence of foreign insurers in the market increases the need for effective regulation and contributes to the dissemination of international regulatory experience.
At the same time, a number of aspects of the activities of foreign insurers and their impact on the development of the insurance market cause reasonable concern.
1. Dominance of foreign insurers in the domestic market. Foreign companies, as larger and more powerful organizations, may hinder the strengthening of Russian insurers or try to force them out of the market. To a large extent, this depends on the regime adopted in the country for foreign insurers.
2. Possibility of developing the insurance sector with the help of national insurers. This argument would be significant if the national system of insurance regulation would guarantee the most efficient functioning of the internal market and provide the necessary range of insurance services. This situation is clearly not typical for the Russian insurance market. However, even under this condition, a ban or serious restrictions on the activities of foreign insurers is hardly justified. If the domestic market operates efficiently, competition will not pose a threat to national insurers. If the market does not provide the required range of services, the participation of foreign insurers can only accelerate the formation of a developed insurance sector in the country.
3. The importance of maintaining national control over the insurance system. For reasons of national security, some important objects must be insured only by Russian insurers. The reason for this is related to the possible destabilization of the insurance market as a result of the withdrawal of foreign capital in the event of a conflict, or the need to prevent the concentration of insurance of important national objects in the hands of a few foreign insurance companies. Such concerns have a basis in reality. However, this is an insufficient argument in favor of a general restriction on the operations of foreign insurers. Ultimately, the government decides to create an adequate regulatory system that affects all types of insurers and ensures that national priorities are met. This is possible for some types of strategically vulnerable types of insurance, which will be retained by national insurers.
4. Possibility of capital outflow as a result of the activities of foreign insurers. The process of business development of foreign companies will lead to an influx of capital. An investor's actions in the market will inevitably involve a complex payment structure. Within the internal market, premiums, insurance payments, rent, wages and payments to other service providers will be collected. Outside Russia, payments will be made to Western reinsurers (where permitted), profits and dividends will be transferred to parent companies. In the event of a loss the risk of which was reinsured abroad, the insurance payment will become a capital inflow. Taken together, all these payments, made at different times, may result in a net inflow or outflow of capital during the year, but this does not mean pumping resources out of the national economy in the long term.
Analysis of the above arguments indicates in favor of creating equal conditions for the activities of national and foreign insurers. In a developing economy, the presence of reputable foreign firms is an important way to improve market efficiency by providing new procedures and technology, expanding the range of services and helping to reduce prices. A significant part of the problems arising in connection with the arrival of foreign insurers can be eliminated through appropriate regulatory methods.
Unfortunately, international law has not yet had a significant impact on the development of the Russian insurance market.
Requirements and restrictions regarding the activities of foreign insurance organizations in the Russian market with the participation of foreign capital are established by the Federal Law “On the organization of insurance business in the Russian Federation”.
Conclusion
This course work outlines the general characteristics of the insurance market in Russia, i.e. the basic concepts are revealed, the main terms of insurance are defined in a concise and accessible form, the state of the insurance market in Russia for a given period is shown, and the prospects for the development of the insurance market in Russia are presented.
The chapter “General characteristics of the insurance market” discusses the concept of the insurance market, the stages of its development, types of insurance, and basic concepts of insurance.
The chapter “The State of the Insurance Market in Russia” talks about the current state of the Russian insurance market and analyzes the insurance market as a whole.
The chapter “Prospect for the Development of the Insurance Market” proposes the main directions for the further development of the insurance business in Russia.
To summarize, we can draw the following conclusion. The insurance business, inherent in any economy operating on a market basis, has undergone significant development in Russia in recent years. This is evidenced by the creation of hundreds of insurance organizations, the emergence of a large number of new types of insurance, previously unknown in the domestic economy.
The development of the insurance market in Russia is currently complicated by a number of factors related to the general crisis state of the economy. Specifically, this is expressed as follows:
The instability of the national monetary unit as a universal equivalent largely deprives the insurance business of a healthy economic basis for the existence of insurance operations. Inflation is eroding the foundation of long-term life insurance. For the normal functioning of the insurance market, the real exchange rate of the national currency unit is needed. Hard currency is a condition for stabilizing the economy; we must decisively follow the path of strengthening the ruble and ensuring its convertibility;
A significant factor of instability in the activities of insurance organizations is the lack of areas for the application of temporarily free funds, ensuring both the guaranteed safety of invested funds and a stable profit from these assets;
A special problem is the lack of professional personnel in the field of insurance and competent actuaries. Specialists from educational institutions and business schools will have to work on solving this problem. It is necessary to overcome the “devaluation” of the work of an insurance worker and make it prestigious. The issues of training, retraining and advanced training of insurance workers who are capable of posing and creatively solving complex problems in the context of the transition to a market economy are acquiring national importance. We need strict professional selection of personnel, which to a certain extent will be achieved by the contract system used in other countries and which has begun to be introduced into our economic practice;
The next group of problems is related to the development of insurance investment - an underdeveloped financial market and limited investment objects have a negative impact on the investment component of insurance. The absence of the use of assets such as loans in our legislation reduces the attractiveness and competitiveness of Russian insurers;
The legislative framework for regulating the insurance market remains poorly developed and requires improvement. There is no comprehensive and systematic nature of the regulatory framework; the mechanism for regulating and using cash flow generated in insurance is weak;
The young domestic insurance market and a powerful financial and professional market can disrupt the existing balance in the insurance market, this, in turn, can contribute to increased capital outflow from the country and, on this basis, the development of external dependence and the weakening of the strategic importance of insurance.
The boundaries of insurance are significantly expanding in connection with the implementation of corporatization and the development of entrepreneurship. It is necessary to allow the sale of unprofitable enterprises and mothballed construction sites. The question of the possibility of selling land into private ownership should be considered in the most careful and unbiased manner. All this will allow not only to create a material basis for the development of entrepreneurial activity, but also to revive insurance interests and intensify insurance work.
Bibliography
1. Civil Code of the Russian Federation (part two, chapter 48) dated January 26, 1996 N 14-FZ [adopted by the State Duma of the Federal Assembly of the Russian Federation on December 22, 1995: ed. dated 05/08/2010].
2. Law of the Russian Federation of November 27, 1992 N 4015-1 “On the organization of insurance business in the Russian Federation” [adopted by the State Duma of the Federal Assembly of the Russian Federation on 04/09/2010: as amended. and additional dated December 31, 1997, November 20, 1999, March 21, April 25, 2002, December 8, 10, 2003, June 21, July 20, 2004, March 7, July 18, 21, 2005, May 17, 2007].
3. Federal Law No. 40-FZ of April 25, 2002 “On compulsory civil liability insurance of vehicle owners” [adopted by the State Duma of the Federal Assembly of the Russian Federation on July 16, 2010, as amended. and additional dated December 24, 2002, June 23, 2003, December 29, 2004, July 21, 2005, November 25, December 30, 2006].
4. Decree of the Government of the Sverdlovsk Region dated 05/07/2008 N 420-PP "On the Concept for the Development of Insurance in the Sverdlovsk Region in 2008 - 2010" (together with the "Action Plan for the Implementation of the Concept for the Development of Insurance in the Sverdlovsk Region in 2008 - 2010")
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These measures will allow the fishing industry to become more efficient and strengthen the level of food security of the state.
Literature
1. Gravshina I.N., Denisova N.I. Competitiveness of the agro-industrial complex as a mechanism for ensuring the economic security of the state // Collection of scientific articles based on the materials of the international scientific and practical conference "Innovative development - from Schumpeter to the present day: economics and education", Publishing house: Limited Liability Company "Scientific Consultant", Moscow, 2015, S. 122128.
2. Gravshina I.N. Threats to ensuring food security // Collection of scientific papers based on the materials of the International Scientific and Practical Conference on April 30, 2015: in 14 volumes, Ucom Consulting Company LLC, Tambov, 2015, pp. 51-52.
3. Denisova N.I. On the issue of food security in the region and the factors that determine it (based on materials from the Ryazan region) // Bulletin of the agro-industrial complex of the Verkhnevolzhye region, Federal State Budgetary Educational Institution of Higher Professional Education "Yaroslavl State Agricultural Academy", Yaroslavl, 2015, No. 3 (31), pp. 9-12.
4. Denisova N.I. Food security of Russia: problems, prospects // Bulletin of the Ryazan State Agrotechnological University named after. P.A. Kostycheva, Ryazan, 2014, No. 1 (21), pp. 101-105.
Development of fishery within strengthening of food security of the state
Natalya Ivanovna Denisova, candidate of economics, head. The department of finance and credit The Ryazan branch of Moscow Witte University
In the article the assessment of a current state of fishery of the Russian federation is given, the ratio is shown is export - import operations in fish branch. Prospects of development of fish branch within strengthening of food security of the state are defined
Keywords: fishery, food security, branch, development, concept
INSURANCE MARKET OF RUSSIA: PROBLEMS AND DEVELOPMENT PROSPECTS
Natalya Ivanovna Denisova, Ph.D. econ. sciences, head Department of Finance and Credit,
e-mail: [email protected] Lyudmila Mikhailovna Chizhenko, associate professor. Department of Finance and Credit e-mail: miss.chijenko@yandex Ivan Petrovich Chizhenko, associate professor. Department of Finance and Credit e-mail: chijenko.iw@yandex Ryazan branch of the Private Educational Institution of Higher Education “Moscow University named after S.Yu. Witte"
http://www. muiv. ru/ryazan/
The article reveals the features of the Russian insurance market. The causes and trends of its change are determined. The problems and prospects for the development of the insurance market in the Russian Federation are revealed.
N.I. Denisova
Key words: insurance, insurance market, property insurance, personal insurance, insurers.
In modern conditions of the rapid growth of the threat of harmful consequences of various unfavorable factors associated with the development of scientific and technological progress and the increased risk of losses associated with business activities, the role of such sphere of financial relations as insurance, designed to protect the interests of both representatives of L.M. . Chizhenko lei of business and ordinary citizens when various types of harm are caused as a result of the action of unfavorable factors of an objective nature. At the present stage of development of market relations, along with the traditional purpose of insurance - ensuring the protection of policyholders from natural disasters, random events of a technological and environmental nature, the objects of insurance are increasingly becoming property interests related to compensation for damage caused by the insured to the person or property of third parties. Through insurance, a person realizes one of his most important needs - the need for security. In this regard, the development of such a segment of the financial market as the insurance market is of particular relevance.
The insurance market is a specific market ^^^ sphere that exists in unity with the commodity market,
is its variety and develops within the framework of general laws.
The insurance market is the sphere of formation of supply and demand for insurance services. It expresses the relationship between various insurance organizations (insurers), 7 ^ offering relevant services, as well as legal entities and individuals who need insurance protection (policyholders). Just like the market for any other goods, works, services, the insurance market is subject to cyclicality, economic natural fluctuations in the growth and decline of prices for insurance services. All relations between participants in the insurance market are regulated by the Civil Code of the Russian Federation and the Law of the Russian Federation “On the organization of insurance business in the Russian Federation.” The insurance market operating in Russia is a complex system with many relationships between its participants, which is presented in Figure 1.
Please note that insurance is an area of activity that is quite strictly regulated by the state. In the Civil Code of the Russian Federation, the regulation of insurance is currently the Federal Law of the Russian Federation “On the organization of insurance business in the Russian Federation” dated December 10, 2003 No. 172-FZ. The activities of all insurance entities are subject to mandatory licensing. Regular supervision of the activities of insurers is carried out (until September 1, 2013, it was carried out by the Federal Insurance Supervision Authority (one of the five federal services in the Ministry of Finance; after this date, this function is performed by the mega-regulatory body of the financial market, which is the Bank of Russia). In As a result of fairly high requirements for the activities of insurers, their number in the insurance market compared to the beginning of the 90s of the last century, which is considered the beginning of the revival of the national insurance market in Russia and there were more than 3 thousand insurance organizations, decreased by more than seven times. -
According to the Bank of Russia, at the end of 2014, 404 insurance and reinsurance companies provided insurance services in Russia. In 2014 alone, 20 insurance companies left the market. According to the Central Bank of the Russian Federation, the total authorized capital of Russian insurers is 219.94 billion rubles (as of 12/31/2013 - 210.4 billion rubles), the average authorized capital is 544.41 million rubles (as of 12/31/2013 .-500.88 million rubles). The rate of capital growth has decreased compared to last year.
Figure 1. Participants in the Russian insurance market
The above-mentioned Federal Law No. 172-FZ distinguishes three branches of insurance: 1) personal insurance; 2) property insurance; 3) liability insurance. This classification is based on significant differences in the insurance object. A type of insurance represents a part of the insurance industry. It is characterized by insurance of homogeneous property interests.
Personal insurance is a form of protection against risks that threaten a person’s life, ability to work and health. Life or death as a form of existence cannot be objectively assessed.
Unlike property insurance, in personal insurance, the insured amounts do not represent the cost of material losses or damages caused, which cannot be objectively expressed, but are determined in accordance with the wishes of the insured based on his financial capabilities. Property insurance in the Russian Federation is an insurance industry where the objects of insurance legal relations are property in various types. Property is understood as a set of things and material assets that are owned and operated by an individual or legal entity. Property includes money and securities, as well as property rights to receive things or other property satisfaction from other persons. Liability insurance is an independent area of insurance activity. The object of insurance here is the liability of the insured under the law or by virtue of a contractual obligation to third parties for causing harm to them.
Insurance as a form of activity of insurers is carried out in two forms: voluntary and compulsory.
Voluntary insurance is carried out on the basis of an agreement between the policyholder and the insurer. Compulsory insurance is insurance carried out by force of law. The types, conditions and procedure for compulsory insurance are determined by the relevant laws of the Russian Federation.
Mandatory types include types of insurance, the importance of which is at the level of life safety of the entire society, for example, compulsory medical insurance (CHI), civil liability insurance of organizations operating hazardous production facilities (OSOPO), compulsory liability insurance of vehicle owners, compulsory carrier liability insurance (OSGOP). Which type is mandatory is determined by the state at the legislative level.
The need of a citizen or enterprise for voluntary insurance is expressed in receiving monetary compensation from the insurance organization in the event of an insured event. However, the guarantee of this compensation is not given free of charge; to obtain insurance, you must pay an insurance premium. Voluntary insurance is not compulsory in nature and provides freedom of choice of insurance services in the insurance market and their volume. Voluntary insurance, for example, includes: voluntary insurance of civil liability of vehicle owners (DSAGO) and voluntary property insurance (AUTOCASCO), voluntary medical insurance (VHI), voluntary environmental insurance.
The main indicators of insurance activity on the Russian insurance market over time are presented in Table 1.
Table 1
Dynamics of the Russian insurance market
~~ _years indicator ~~ --------- 2010 2011 2012 2013 2014
Insurance premiums (billion rubles) 555.8 665.2 809.96 904.86 987.77
Growth rate of premiums (%) 4.2 19.65 21.66 11.1 8.5
Insurance payments (billion rubles) 295.97 303.76 369.44 420.77 472.27
Payment growth rate (%) 3.8 2.63 21.62 12.9 11.4
Payout ratio (%) 53.25 45.68 45.66 46.5 47.81
The slowdown in the Russian economy has also affected the insurance sector. In 2014, the ratio of insurance premiums to GDP was 1.39% versus 1.3% in 2013, but the growth rate of premiums (8.5%) was lower than the inflation rate (11.36%). 2014 turned out to be even less successful for the insurance market than the previous one. The volume of premiums increased to 987.77 billion rubles, but the annual growth rate of premiums decreased from 11% to 8.5%. As expected, the tendency for the growth rate of payments to exceed the growth rate of premiums continued. According to the Central Bank of the Russian Federation, the quarterly slowdown in growth rates, observed for 1.5 years, was interrupted in the 4th quarter of 2014.
Insurers have worked for a full year under the supervision of the new regulator. The main tasks set before it in 2014 have been completed - the institution of supervision has been introduced, a department for protecting the rights of consumers of financial services has been created, and requirements for the quality of assets have been tightened. Supervision listens to the opinion of the insurance community, the effectiveness of its work is assessed according to KR1.
Speaking about the Russian insurance market, one cannot fail to note its regional characteristics. The regional structure of the insurance market in terms of the volume of received insurance premiums by federal district is presented in Table 2.
table 2
Regional structure of the Russian insurance market
Name of the Federal District Market share
Central 57.44
Northwestern 9.8
Privolzhsky 12.23
Ural 6.49
Siberian 6.07
Far Eastern 2.23
North Caucasian 1.19
Crimean 0.02
Compared to 2013, the structure of premium receipts remained virtually unchanged. Traditionally, the Central Federal District occupies a leading
position in the structure of the total insurance premium (57.44% or 567.4 billion rubles). The Crimean Federal District brought in 178 million rubles in less than a year. Of the 3 companies that most actively began work in new constituent entities of the Russian Federation, temporary administrations were introduced in two - SK Severnaya Kazna LLC and RSTK OJSC.
In the structure of insurance by its forms, there continues to be a tendency to reduce the share of voluntary types of insurance that are not related to life insurance. The share of mandatory types is stable (~18% over the last 3 years), and the share of life insurance continues to increase (from 6.65% in 2012 to 10.99% in 2014). The volume of insurance premiums for voluntary types of insurance in 2014 amounted to 808.92 billion rubles, for compulsory types of insurance - 178.85 billion rubles. Unlike last year, the growth rate of voluntary payments (+10.5%, 363 billion rubles) exceeded the growth rate of premiums (+8.7%). In general, the market showed positive dynamics in premiums for all types of voluntary personal insurance (328.11 billion rubles, +11.3% compared to 2013), 6 out of 7 types of voluntary property insurance (420.4 billion rubles, + 5.9%), 5 out of 8 types of voluntary liability insurance (37.85 billion rubles, +10.3%). All types of property insurance, except agricultural insurance, water transport and personal property, showed a growth rate below the market average. The most significant changes affected railway transport insurance, premiums for which decreased by 16.8%. In the structure of premiums for voluntary types, the main part falls on ground transport insurance (27.02%), voluntary health insurance (15.34%), accident insurance (11.81%), life insurance (13.42%), insurance property of legal entities (13.87%).
The leading types in terms of the growth rate of premiums for voluntary types were property insurance of citizens (+29.4% compared to last year), life insurance (+27.9%), agricultural insurance (+16.3%), liability insurance of railway transport owners ( +202.7%), for non-fulfillment or improper fulfillment of obligations under the contract (+668%) and liability for causing harm to third parties (+24.5%). As for the volume of premiums, the largest increase was achieved by life insurance (+23.7 billion rubles) and compulsory motor liability insurance (+16.7 billion rubles).
The attractiveness of the Russian insurance market for foreign capital remains low. In 2014, some international insurance groups (Allianz, Zurich, Achmea) announced their complete or partial withdrawal from Russian business, which is due to the low level of development of classical types of insurance, the serious influence of non-insurance factors on financial results, and the growth of political and currency risks. According to the Central Bank of the Russian Federation, the share of participation of foreign companies in the authorized capitals of Russian insurers continues to decline (as of December 31, 2014 - 15.4%, as of December 31, 2013 - 15.88%, a year earlier - 17.4%). The life insurance segment continues to be of greatest interest to foreigners.
Analyzing the dynamics of profitability of insurance activities, its decline is noted. The crisis has not spared insurers. Almost all companies are faced with the problem of falling return on equity, assets, and insurance activities, as can be judged from the data presented in Table 3.
Taking into account administrative and other expenses, net profit figures for the market as a whole decreased. There will be little room for cost reduction in the near future. Insurers will have to switch to a new chart of accounts and introduce electronic sales, which will require costs for reforming and maintaining IT systems. The profitability of the insurance business tends to 0. Pressure on profitability is exerted by high costs of doing business and unprofitability of motor types. The combined loss ratio of most auto insurance companies exceeds 105%. In such conditions, investors lose interest and withdraw capital from this segment. Political risks put additional pressure on foreign
ny investors, as a result, foreign capital leaves the Russian insurance market. Replacing low-liquidity assets with those that meet the requirements of the Central Bank on a daily basis requires additional resources from the owners, and since out of 400 insurers, about 250 actually work, a reduction in their number is inevitable. Thus, despite a fairly stable composition of participants, the reliability of many insurance companies has deteriorated.
Table 3
Financial results of insurance companies operating in the Russian insurance market (thousand rubles)
Indicators for 2012 2013 2014
Volume of premiums for direct insurance 812,469,018,904,863,559,987 772,587
Commission 117 149 354 147 835 411 151 327 583
Direct insurance payments 370 781 953 420 769 030 472 268 587
Transferred to reinsurance 114,789,933 120,157,653 138,447,778
Share of reinsurers in payments 26,403,470 25,807,013 38,727,314
Financial result (excluding incoming reinsurance) 236,151,248 241,908,478 264,455,953
Incoming reinsurance premiums 42,798,000 44,732,071 48,447,064
Payments for incoming reinsurance 13,989,136 14,302,023 18,776,561
Financial result (including incoming reinsurance) 264,960 112,272,338,526 294,126,456
In accordance with the law, insurance companies pay federal, regional and local taxes. Insurers cannot apply special tax regimes.
Speaking about the prospects for the development of the Russian insurance market, we note that in 2013, the Strategy for the development of insurance activities in the Russian Federation until 2020 was developed and adopted. Its main directions are:
Improving the regulation of compulsory insurance;
Stimulating the development of voluntary insurance;
Expanding the scope of activity of insurance business entities;
Development of insurance market infrastructure;
Optimization of the risk management system using budget funds;
Development of the agricultural insurance system;
Increasing the efficiency of forms and methods of state control and supervision of insurance entities and ensuring their financial stability;
Protecting the rights of consumers of insurance services, improving insurance culture, popularizing insurance;
Strengthening the role of the Russian insurance market at the international level.
However, in the current situation in the financial market of the Russian Federation, and in particular in the insurance sector, in the conditions of a number of insurance companies leaving the market, the low profitability of their activities and unattractiveness in terms of investing investment resources, the deterioration of the financial condition of many clients and the presence of a number of other crisis phenomena, the development strategy It is not possible to develop even for 3 years. One should not expect a qualitative change in the market at the end of 2015. The increase in premiums is mainly due to an increase in tariffs, but is unlikely to cover the inflationary component. In the context of a slowdown in business development, the development of the insurance market will largely depend on the organization of the financial activities of the insurers themselves and the quality of the services they provide. In this regard, it seems relevant to improve the insurance mechanism in order to improve the quality of service provision in the interests of existing and newly attracted clients. Special attention
should be given to the development of remote customer service through the sale of electronic policies; expansion of non-agency sales contacts; reducing the harmful impact of the problem of insurance fraud; intensifying sales of insurance products in the SME sector; improving the mechanism for settling losses under compulsory motor liability insurance within the framework of the Belgian model; revitalizing the segment of voluntary liability insurance of car owners and other progressive areas of activity of insurance companies.
Literature
1. Civil Code of the Russian Federation: [federal law: adopted. State Duma part one - November 30, 1994, part two - January 26, 1996, part three - November 26, 2001, part four - December 18, 2006]. NW RF. 1994. No. 32.
2. On the organization of insurance business in the Russian Federation: [federal. Law: adopted by the State Duma on November 27. 1992 as amended by Federal Law dated December 10, 2003 No. 172-FZ]
3. On amendments to certain legislative acts of the Russian Federation in connection with the transfer to the Central Bank of the Russian Federation of powers to regulate, control and supervise the financial markets [federal. law: adopted by the State. Duma July 23, 2013 No. 234-FZ]
4.Strategy for the development of insurance activities in the Russian Federation until 2020 /Approved by Order of the Government of the Russian Federation dated July 22, 2013 No. 1293r
5. Official website of the Central Bank of the Russian Federation www.cbr.ru
7. Denisova N.I., Chizhenko L.M., Chizhenko I.P. Modern processes in the organization of taxation of insurance protection // Bulletin of Moscow University named after S.Yu. Witte. Series 1: Economics and Management, No. 3 (9). 2014. pp. 32-40.
8. Denisova N.I., Chizhenko L.M., Chizhenko I.P. Financial levers for the implementation of state support for small businesses // Collection of Information Society and Current Problems of Economic, Humanitarian, Legal and Natural Sciences. Materials of the X International Scientific and Practical Conference. Ministry of Education and Science of the Russian Federation, International Educational Consortium "Electronic University", Federal State Budgetary Educational Institution of Higher Professional Education "Moscow State University of Economics, Statistics and Informatics (MESI)" Ryazan branch, 2014, pp. 40-49.
9. Denisova N.I., Chizhenko L.M., Chizhenko I.P. Features of lending to small businesses in the system of services of the banking sector of Russia // Bulletin of Moscow University named after S.Yu. Witte. Series 1: Economics and Management, No. 2 (13). 2015. pp. 3-8.
Insurance market of Russia: problems and prospects of development
Natalya Ivanovna Denisova, Candidate of Economics, head. the department of finance and credit, The Ryazan branch of Witte Moscow University
Lyudmila Mihaylovna Chizhenko, Associate Professor of the Chair “Finance and Credit”, The Ryazan branch of Witte Moscow University
Ivan Petrovich Chizhenko, Associate Professor of the Chair “Finance and Credit”, The Ryazan branch of Witte Moscow University
In article features of the insurance market of Russia are opened. Causings and tendencies of its change are defined. Problems and prospects of development of the insurance market in the Russian Federation are opened.
The keywords: insurance, insurance market, property insurance, personal insurance, insurers.
Insurance is one of the most dynamically developing areas of Russian business. The volume of transactions in the insurance market is growing steadily.
At the same time, over the years of market transformations it has not been possible to fully create a stable insurance market that meets the modern needs of society. The further development of insurance in Russia requires clarification of its role in solving the socio-economic problems of the state. Not all tasks defined in the Main Directions for the Development of the National Insurance System in the Russian Federation can be solved successfully. The development of insurance is negatively affected by:
- - the existing level of solvency and demand of citizens and legal entities for insurance services;
- - the incomplete use of the market mechanism in the field of insurance and, in particular, the underdevelopment of compulsory insurance, without which the voluntary insurance market cannot actively develop;
- - lack of reliable long-term placement instruments
insurance reserves;
- - limiting competition in some sectors of the insurance market in the territories, in particular, by creating affiliated and authorized insurance organizations;
- - lack of a system of measures to improve legislation on taxes and fees in the insurance services market;
- - low level of capitalization of insurance organizations, underdevelopment of the national reinsurance market, leading to the impossibility of insuring large risks without significant participation of foreign reinsurance companies and the unjustified outflow of significant amounts of insurance premiums abroad;
- - informational secrecy of the insurance services market, creating
problems for potential policyholders in choosing sustainable insurance organizations;
Imperfection of legal and organizational support
state insurance supervision.
Significant expenses associated with eliminating the consequences of natural disasters, accidents and catastrophes, covered by budgetary funds and funds of citizens and legal entities, have a negative impact on the state of the economy. Due to a lack of funds, compensation for losses often occurs selectively, as a result of which the property interests of citizens and legal entities are largely infringed. Losses from business risks are also increasing. Cumulative types of long-term personal insurance do not fully meet the needs of citizens.
In these conditions, the development of the insurance business should be aimed at developing and implementing measures to meet the needs for insurance protection of the population, organizations and the state, contributing to the expansion of business activities and the accumulation of long-term investment resources for the development of the state's economy.
The main objectives of the development of the insurance business are:
- - formation of the legislative framework for the insurance services market;
- - development of compulsory and voluntary types of insurance;
- - creation of an effective mechanism for state regulation and supervision of insurance activities;
- - encouraging the transfer of household savings into long-term investments using long-term life insurance mechanisms;
- - gradual integration of the national insurance system with
international insurance market.
Given the current level of effective demand for voluntary insurance services, compulsory insurance is a priority, which will create insurance protection for potentially risky groups of the population, legal entities, and also significantly reduce the state’s costs of compensating damage to victims of natural disasters, accidents and catastrophes.
In order to stop the practice of adopting regulatory legal acts containing declarative rules on compulsory insurance, it is necessary to create a legislative basis for compulsory insurance on the territory of the Russian Federation. The compulsory insurance system should provide for the effective protection of the state's property interests from natural disasters, accidents and catastrophes with minimal expenditure of budgetary funds. To do this, it is necessary to conduct an inventory of the relevant objects, determine their value, the risks against which insurance protection will be provided, and the forms of insurance, as well as find sources of insurance protection.
Compulsory insurance should be based on the principle of forming insurance reserves for compensation of damage and compensation for losses to insured persons and other beneficiaries and exclude the financing of measures aimed at concealing facts of mismanagement of organizations at the expense of policyholders. The adoption of legislative acts should be carried out on the basis of preliminary financial and economic study, confirming the possibility of solving the problems of insurance protection in a mandatory form and on the proposed conditions.
The development of compulsory insurance involves:
Strengthening control over the conduct of mandatory state
insurance, including compulsory insurance;
Introduction of types of compulsory insurance of objects subject to
significant risks and losses, citizens and legal entities who have suffered significant damage as a result of natural disasters, accidents and catastrophes (liability insurance of vehicle owners, insurance of production facilities against man-made accidents, property insurance against fires and natural disasters, insurance in case of damage as a result of major accidents when moving dangerous goods).
In order to ensure insurance payments for compulsory insurance, centralized guarantee funds (insurance reserves) can be created.
The development of entrepreneurship involves the implementation of liability insurance for the production of goods, the performance of work, the provision of services, as a result of which harm may be caused to third parties, as well as the implementation of professional liability insurance for doctors, realtors, auditors, arbitration managers, etc. The introduction of liability insurance for certain categories of goods manufacturers and performers of works (services) will allow effective control over their activities, to ensure the protection of the rights of consumers of services, especially in those areas of the national economy where there are no clear and effective mechanisms of state control and supervision. The development of insurance will have a positive impact on the entrepreneurial activity of citizens.
At the same time, attracting investment resources to the economy will require further development of insurance of financial and business risks, development of insurance technologies in the field of industrial, transport, construction and agricultural risks.
The basis of the insurance services market and the reserve for its development is voluntary insurance. The priority areas in the development of voluntary personal insurance should be life insurance and pension insurance.
Life insurance is an important area of the insurance business, a traditional and constant source of significant investment resources that contribute to successful economic growth. The demographic situation, characterized by an increase in the proportion of the population in older age groups, and the transition to a funded system in pension insurance, including the independent formation by citizens of their own pension fund, suggest an expansion of the participation of insurance companies in the implementation of pension insurance.
The incentive for the development of long-term life insurance should be the creation of a system of guarantees for policyholders and insured citizens in receiving accumulated amounts under insurance contracts. In addition to tightening regulatory requirements for the financial stability of insurers, specialization of insurance organizations should be introduced, excluding the provision of personal insurance (life insurance and pensions) and property insurance by one insurer. For these purposes, a classification of types of insurance activities should be developed, the features of the organization and implementation of life insurance and pensions should be determined.
It is necessary to develop measures to expand the scope and volume of voluntary medical insurance and voluntary accident insurance. These types of insurance should become an important element of the “social package” provided by employers to their employees.
The further development of voluntary health insurance requires the formation of a legal framework that takes into account the specifics of this type of insurance, contributing to the improvement of the rules governing the interaction of health insurance entities, reflecting the peculiarities of taxation of health insurance operations.
An important area of insurance development is improving the system of compulsory medical insurance for citizens in the Russian Federation. First of all, it is necessary to move to the insurance principle in the implementation of this type of insurance and other types of insurance that have a social orientation and complement the systems of compulsory social insurance and social security.
Insurance must play a significant role in pension reform.
The participation of insurers, along with non-state pension funds, in compulsory pension insurance, taking into account the specifics of the legal regulation of insurance, presupposes compliance with the uniform principles of activity of the subjects of this insurance system established by law.
After taking measures to develop compulsory and voluntary insurance, the volume of insurance operations will increase significantly, which means that the responsibility of insurance organizations for fulfilling their obligations under insurance contracts will increase. This situation requires the adoption of legislative measures aimed at increasing the minimum size of the authorized capital of insurers, the formation of which is carried out in cash.
It is necessary to develop measures to economically stimulate the founders of insurance organizations and capitalize the profits received to increase the size of authorized capital. In order to increase the competitiveness of Russian insurance organizations and in connection with Russia's accession to the World Trade Organization, it is necessary to take legislative measures aimed at increasing the basic minimum size of the authorized (share) capital of Russian insurers, formed in cash.
In order to increase the capacity of the insurance services market, it is necessary to develop measures to stimulate coinsurance and reinsurance.
Most insurers do not have significant financial resources and cannot insure large risks, however, by transferring part of the risks to the reinsurer, the insurance company can guarantee the fulfillment of its obligations to clients. However, to ensure such guarantees, it is necessary to develop legislative norms establishing limits on the insurer's obligations, standard provisions of reinsurance contracts, and also determine the rules of business turnover in the Russian reinsurance market.
The development of insurance and reinsurance should be stimulated by creating specialized insurance associations, expanding the participation of Russian insurers in international reinsurance systems and coinsurance agreements, forming guarantee funds and applying other economically justified measures aimed at increasing the potential of national investors in the insurance market.
These measures will also make it possible to streamline cross-border reinsurance and prevent the unjustified outflow of foreign currency funds abroad.
It is necessary to continue to further improve the taxation of insurance operations. The taxation regime for long-term insurance operations should become an incentive for individuals and legal entities to form effective protection against the most significant risks. These issues should be considered in line with the analysis of the practice of applying the Tax Code of the Russian Federation and accounting provisions in the context of the transition to international accounting and financial reporting standards.
One of the priority tasks for the development of the national insurance system is the improvement of investment policy, which provides for the development and implementation of measures to create a favorable investment climate in the country, ensuring the expansion of areas for investing insurers' funds. In order to attract investments for the development of the country's economy and provide policyholders with the opportunity to use reliable forms of preserving their savings invested in insurance, it is advisable to coordinate the directions of investments of financial resources of insurance organizations, taking into account the types of insurance and the duration of contracts, establish standards for their investments, and divide investment flows for insurance life and other types of insurance, as well as stimulate long-term investments.
The procedure for placing funds received as a result of compulsory types of insurance, as well as personal insurance of citizens, should minimize the risks of their investment. Problems of development of the insurance market should become the object of attention of the authorities exercising control over insurance activities in the insurance services market and antimonopoly regulation.
The effective functioning of the insurance services market presupposes the creation of equal operating conditions for all insurance organizations on the territory of the Russian Federation, for which it is necessary to ensure:
- - strengthening control over the actions of government bodies at all levels that limit competition in the insurance market;
- - development of a system for holding open insurance competitions
organizations involved in providing insurance at the expense of budgetary funds;
Monitoring the activities of insurance organizations occupying
dominant position and preventing other insurance organizations from entering the market;
State control over the concentration of capital in the market
insurance services;
Improving the forms of statistical accounting and reporting of insurance organizations, including for the purpose of analyzing the competitive environment in the federal and regional markets for insurance services and determining the dominant position of insurance organizations in such markets.
An important condition for competition in financial services markets is the exclusion of state participation in the authorized capital of insurers.
The development of the insurance services market should be based on making decisions that provide, first of all, for improving the quality of functioning of the national insurance system in competition with insurers whose capital was formed with the participation of foreign investors. The process of liberalization of the insurance market in the medium term should be based on the fact that insurance is the most important tool for the formation of long-term, most important for the development of the Russian economy, domestic investment resources.
Decisions on the nature and conditions of access of foreign insurance companies to the Russian market, made during negotiations on Russia’s accession to the World Trade Organization, will be of strategic importance, and therefore must take into account the growth rate of the Russian economy and insurance development.
The fundamental principle of Russia's integration into international financial and trade organizations is the gradual liberalization of the insurance services market in accordance with the priorities and level of development of individual sectors of this market. For these purposes, first of all, it is necessary to ensure:
- - formation of a regulatory legal framework adequate to international requirements;
- - bringing accounting and reporting provisions into
compliance with international standards;
Financial stability of companies operating in the national
insurance market;
- - creation of an insurance market infrastructure to serve policyholders, insured and other interested parties, including the protection of their rights;
- - creation of favorable macroeconomic conditions,
characterized by a low and relatively stable level of inflation, a decrease in the level of economic crime, etc.
In the medium term, insurance organizations that are residents of the Russian Federation, subject to the requirements of insurance legislation, must be allowed to participate in the insurance market. In addition, in order to increase the capitalization of the insurance services market, the scope of activity of Russian insurance companies should remain the compulsory insurance market (including state insurance), which is part of the insurance protection system, the property insurance market associated with the implementation of supplies or contract work for government needs, as well as property state and municipal organizations. Then decisions will be made on the procedure and timing for admitting foreign organizations to carry out certain types of compulsory insurance.
State supervision of insurance activities in the Russian Federation is carried out on the principles of legality, transparency, organizational unity of supervision and ensures the implementation of a unified state policy in the field of insurance. The scope of state supervision of insurance activities should include the development of plans for the development of the insurance business, analysis of the financial position of the founders (shareholders, participants, affiliates) and their shares in the authorized capital of the insurance organization, the procedure for the reorganization and liquidation of insurance organizations, their solvency and financial stability. These provisions fully comply with international experience and insurance supervision standards.
Improving state insurance supervision over
the activities of insurance organizations and other professional participants in the insurance services market, as well as the protection of the rights and interests of its subjects, presuppose:
- - increasing the reliability of the insurance system by establishing uniform requirements and standards for the provision of insurance services used in international practice;
- - establishment of rules, regulations and indicators of solvency and financial stability based on reporting compiled in accordance with international standards for pricing insurance services;
- - financial recovery of the insurance company, including a mandatory increase in capital and the use of compulsory measures to manage its assets;
- - establishment of insurance for professional participants
requirements for appropriate education and work experience in the specialty, allowing them to perform the functions assigned to them, as well as the implementation of measures that prevent access to the management of the insurance company for persons who have committed financial abuse.
Solving these problems will allow us to continue work on modifying the fundamentals of legislative regulation of insurance, which should meet the increasing level of development of the insurance business, and will require, in the medium term, the codification of legislation in the field of insurance.
The implementation of such events will allow:
increase the level of protection of organizations and citizens from various risk groups, improve the quality and expand the range of insurance services offered;
attract significant investment resources to the Russian economy;
solve priority tasks in the field of development of insurance in the Russian Federation and strengthening the system of state supervision of insurance activities;
create a structural basis for the development of voluntary insurance;
to form a system of legal foundations for insurance protection of property interests of the population, organizations and the state, compliance with the rights and guarantees of property security of an individual and the sphere of entrepreneurship.
In connection with the implementation of measures to improve the taxation of insurance operations, the development of long-term life insurance and pension insurance and the introduction of new types of compulsory insurance, there will be a further increase in the number of insurance contracts, the size of insurance payments and, as a consequence, an increase in the volume of financial resources in the insurance system and the provision of a wider circle of citizens and legal entities of insurance protection. The implementation of measures to develop insurance and improve the regulation of relations in this area will contribute to an increase in the total volume of insurance premiums and the volume of insurance payments. The growth in the volume of insurance premiums will allow insurers to accumulate additional financial resources, which will serve as a source of investment of financial resources in the country's economy.
- Tatarenko Daria Yurievna, master, student
- MIREA - Russian Technological University
- PROBLEMS OF THE INSURANCE MARKET
- INSURANCE SERVICES MARKET
- INSURANCE
This article discusses the shortcomings and opportunities for the development of the insurance market in the Russian Federation. The main reasons for the slowdown in the development of the insurance services market have been identified. Methods for improving and developing the insurance system in the Russian Federation are proposed and considered.
- Analysis of enterprise activity under conditions of risk and uncertainty
- Peculiarities of organizing financial and economic services in Russian companies
- Forms and methods of state financial control in the insurance sector
The insurance market is the sphere of formation of supply and demand for insurance services. It implies relationships between insurers, whose role is played by various organizations offering their services in insurance, co-insurance, reinsurance, etc., as well as legal entities and individuals who need insurance protection (insured).
All relations between participants in the insurance market are regulated by the Civil Code of the Russian Federation and the Law of the Russian Federation dated November 27, 1992 N 4015-1 (as amended on November 28, 2018) “On the organization of insurance business in the Russian Federation.”
The insurance market operating in the Russian Federation is a complex system with many relationships between its participants. It has a significant impact on the socio-economic development of the state as a whole.
It is known that the potential for social development is achieved with the help of investment resources. The consolidation of these resources is facilitated by the insurance market. After all, its stability is an indisputable guarantor of the targeted development of the state economy. But, as in any industry, problems arise in the insurance system in the Russian Federation, for which there are sometimes no ready-made algorithms and mechanisms and obvious answers.
One of the problems of insurance activity in the Russian Federation is the decrease in trust of insurers in insurance organizations. This situation occurs due to the high level of risks of poor quality of insurance services, as a result of which the unprofitability of the insurance business as a whole increases. This leads to a reduction in the branches of some large insurance organizations, an increase in unprofitability in key segments of the insurance market, and also reveals a drop in the profitability indicators of insurance organizations.
Let's highlight a few more main problems:
1. Denial that insurance can be a strategic link in the state’s economy. As a result, insurance services not only lose their attractiveness, but also become unprofitable.
2. Lack of investment instruments. Since insurance resources are regulated by the state, deviation from the established rules on the part of insurance companies may cost them a license to engage in insurance activities.
3. Introduction of compulsory types of insurance.
4. Development of long-term life insurance.
5. Regional inconsistency and underdevelopment of the insurance market infrastructure.
But, as you know, for every problem there is a solution. If there is a solution, then there is a prospect for development. The prospects for the development of the Russian insurance market are quite difficult to predict, since they largely depend on the state of the country’s economy, the level of its development, the welfare and insurance culture of the population.
Insurance and credit risks can lead to bankruptcy of insurers. Insurers involved in liability insurance of developers, tour operators and owners of dangerous objects are in an increased risk group due to the extremely high accepted insurance risks. In the absence of high-quality reinsurance, the realization of at least one risk may lead to bankruptcy of the insurer. In addition, insurance companies are faced with restrictions on reinsurance in the European and American markets of risks of certain industries and companies subject to sanctions, which leads to an increase in the risks accepted by insurers for their own retention and an increase in costs associated with the search for new reinsurers. In the recent future, the financial activities of insurers have been negatively affected by credit risks associated with the revocation of licenses from banks and the default of companies on bonds.
The main factors that have a restraining influence on the development of the insurance market are related to internal reasons rather than external ones, and they are also closely related to the characteristics of the Russian economy as a whole.
The slowdown in the development of insurance activities in Russia is due to the following reasons:
- the current legal and regulatory framework in the field of insurance activities is imperfect;
- the level of economic opportunities of insurance entities is low compared to foreign experience;
- the degree of solvency of the population and enterprises decreases;
- traditional sales channels and the quality of sales of insurance products leave much to be desired;
- the high degree of monopolization of companies providing insurance services does not leave policyholders the right to choose;
- discrepancies with the requirements for the solvency of insurers established by international standards leads to a discrepancy between the domestic insurance market and generally accepted global principles;
- Fraud in the insurance market and unfair competition weaken the trust of insurers and.
Today, one of the pressing problems in the development of the insurance sector in the Russian Federation is the unfair implementation of supervisory policy. Control over the insurance services market has been the responsibility of the Insurance Market Department of the Central Bank of the Russian Federation since September 1, 2013, which means that there is now a single centralized approach to regulation and supervision of the entire financial system of the insurance market.
Analyzing the opinions of various experts, we can come to the conclusion that the system of control and supervision over the activities of insurance organizations that currently exists is ineffective, since it does not help identify financially unstable and unreliable organizations.
In my opinion, another serious problem for the development of insurance activities in the Russian Federation remains the reduced quality of education and specialized training of specialists in this industry. The imperfection of the knowledge acquired during training most often lies in the lack of a sufficient number of practical skills in selling insurance products, developing marketing and managing the financial system of insurance organizations. An insurance specialist must be able to plan and forecast an insurance portfolio, ensure its balance and, accordingly, increase the efficiency of sales of insurance products and services. Currently, certification events are carried out only for managers of insurance companies. We should not limit ourselves to this, but carry out certification of all specialists working in the insurance industry. This event will help improve the overall level of training of all insurance specialists.
As for the development of the Russian insurance market, in the near future it is planned to stimulate the population's demand for insurance services. Various mechanisms are being developed to attract clients (both individuals and organizations) by diversifying insurance products, rationally changing the pricing policy for existing insurance products, and also offering new, improved insurance services.
In modern conditions, the Central Bank of the Russian Federation has tightened control over the financial condition of insurance organizations. In a situation of depreciation of the national currency and increasing economic risks, the right decision was to establish a normatively regulated minimum amount of authorized capital and own funds of insurance companies. This innovation allows us to ensure financial stability and minimize the risks of insurance organizations.
It should be noted that for the effective development of insurance activities in the Russian Federation, the main role is played by the support and stimulation of insurance organizations from the state. Such measures will contribute to self-regulation of the insurance market.
Thus, having considered not only the problems of insurance activity, but also ways to solve them, as well as prospects for the development of the insurance market in the Russian Federation, we can conclude that there are no unsolvable problems at this stage, and the insurance market in the Russian Federation is able to develop even in difficult conditions for development economic conditions. The active participation of the state in the field of insurance activities is determined by the improvement of the system of regulation of insurance activities. Consequently, despite the existing problems, the domestic insurance market is actively developing and has unconditional prospects for further improvement.
Bibliography
- Arkhipov A.P. Fundamentals of insurance business: Textbook / A.P. Arkhipov, V.B. Gomel. – M., 2016.
- Basakov M.I. Insurance business in questions and answers: Study guide. – Rostov n/d., 2017.
- Insurance News Agency // [Electronic resource]. - Access mode: http://www.asn-news.ru
- Information portal about insurance // [Electronic resource]. - Access mode: http://risk-insurance.ru
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CURRENT STATE, PROBLEMS AND PROSPECTS FOR DEVELOPMENT OF THE INSURANCE MARKET OF THE RF Kokhno Natalya Olegovna, Ph.D. tech., sciences (e-mail: [email protected]) Grosheva Angela Andreevna, student (e-mail: [email protected]) Khamidulina Diana Gumyarovna, student (e-mail: [email protected]) Novocherkassk Engineering and Reclamation Institute named after. A.K. Kortunova Donskoy State Agrarian University, Russia, Novocherkassk
The article examines the current state of the insurance market in the Russian Federation. Various problems of the insurance market are touched upon, as well as prospects for its development over the next few years.
The theoretical argumentation of the state of the corresponding market in the current situation in Russia is presented.
Key words: insurance, insurance market, property rights, loss coverage.
In the emerging market economy of the Russian Federation, insurance increasingly affects various legal aspects of the life and activities of individuals and legal entities, the state as a whole and its authorities.
The insurance market is one of the most significant segments of the modern market economy, the impact of which on the development of the socio-economic mechanism of the state cannot be overestimated. It is a powerful tool that promotes and facilitates the consolidation of investment resources, which in turn provide the potential for social development. The stability of the insurance market is the key to the constant development of the economy, both the state and society as a whole.
The insurance market demonstrates the scope of specific economic relations between the insured person or beneficiary, who needs insurance protection in connection with the possible occurrence of adverse events, and the insurer, which provides protection, using insurance funds, which consist of cash contributions paid by the insured.
Also, the insurance market is an area of the financial market that can be considered as a collection of several insurance organizations and insurers that provide relevant services for insurance and protection of society, where there are many phenomena that directly affect the low level of financial capabilities for placing large insurance risks , namely:
1. Insufficient amount of insurance reserves and authorized capital of insurance companies.
2. Lack of knowledge and experience in insurance, in the field of assessing insurance risk, damage and its compensation, incompetent risk management.
3. Low level of infrastructure coverage and tariff calculation methodology.
The formation of insurance in the Russian Federation was influenced by the historical features of the development and formation of Russia. At the beginning of the 21st century, domestic insurance was just being revived, which means that today it is still far from its saturation point, so we can talk about great prospects for the development of this area in the near future. The legislative basis for legal regulation in the field of insurance activities was laid by the Law “On Insurance” of November 27, 1992, which gave a huge impetus to the development of the domestic insurance business. The next leading legislative act regulating this area was Chapter 48 of the Civil Code of the Russian Federation.
Today in Russia there are about 232 companies on the insurance services market, which are distributed by type of ownership as follows: mixed - 58%; private - 36%; with state participation - 5%; municipal - 1%. (picture 1).
mixed,% private,% with state. participation,% municipal,%
Figure 1 - Domestic insurance companies by type of ownership
The most developed types of insurance in Russia are considered to be the following: compulsory motor liability insurance, which occupies about 40% of the total market, medical and pension insurance - occupy 2nd and 3rd place, respectively, which in the total volume is slightly less than half of the market (25% and 20%) ., insurance of real estate of individuals and legal entities, which account for more than 10%, and also close the ranking with other types of insurance that are gaining popularity in our country (Figure 2).
Much less popular today in our country are such types of insurance business as liability insurance, accident insurance, children's insurance, professional insurance and other less well-known instruments for protecting capital (liability).
40 35 30 25 20 15 10 5 0
Social insurance,%
new insurance,%
insurance
real estate share,%
other types of insurance,%
share in total insurance volume
Figure 2 - Main types of insurance in the Russian Federation
The number of Russians using insurance services is currently gradually increasing, this is due to rising incomes, industry development and increased government regulation, as well as increasing reliability of insurance companies.
However, it should be noted that the normal pace of insurance development in Russia is still hampered by the following problems:
1. Low indicators of demand and solvency for insurance services for citizens and legal entities. People are used to having insurance imposed on them and do not perceive it as financial protection. In addition, Russian people are accustomed to relying on “maybe”. For example, instead of insuring an apartment against the risk of flooding, they hope that everything will work out.
2. Limitation of competition, which spurs business and forces it to look for new ways of development, value customers and maintain a high level of quality of goods and services. Unfortunately, competition in the insurance market is sometimes artificially limited. For example, if a client took out a mortgage from a bank, he can only obtain insurance from partner companies. The situation is identical with medical insurance, i.e. if a patient wants to be seen in a specific clinic, he will have to choose a policy from only one or several insurance companies with which the medical institution cooperates.
3. Market opacity. It is necessary to increase transparency, i.e. expand the list of documents and data required for disclosure. If information becomes publicly available, people will understand that insurers have nothing to hide, and the level of trust in them will increase.
4. Low operating standards, which lead to the fact that many insurance companies are not responsible to clients.
After the Central Bank became the insurance regulator, the situation began to change a little for the better. In recent years, the market
While about 200 insurers left, the strongest remained. The main problems of those whose licenses were revoked are insufficient financial stability. That is, companies initially understood that they would not be able to cover the risks, but still sold policies to clients. The regulator's requirements should apply not only to the financial stability of companies, but also to the level of services and the amount of payments.
5. Fraud. Only strict regulation of the market and promotion of the desired image of organizations will help cope with the distrust and fear of consumers.
All of the above problems that limit the level of development of insurance and its financial capabilities require an urgent solution. At the same time, these problems should be solved not only on our own, but also taking into account the experience of foreign countries where the insurance market is most developed.
However, let’s not forget about the prospects for the development of insurance in Russia, since if the above problems are resolved as soon as possible, there will be great opportunities for promoting this market
Under the influence of positive trends, taking into account the gradual resolution of problems, in the future the insurance market will grow, strengthen and progress, but at a moderate pace.
Relying on the opinions of experts in the field of insurance, it can be noted that the insurance market in Russia has all the prerequisites for growth of 12-15%, which in the future will contribute to the restoration of GDP growth, the strengthening of the ruble, the reduction of bank rates, as well as the emergence of new offers. In addition, innovations in the MTPL insurance system and an increase in corresponding tariffs will give impetus to a new stage in the development of the insurance market in the near future. The development and growth of the personal lending market will help the growth of insurance of bank clients against accidents and diseases, and also, due to inflation in the cost of medical services, voluntary medical insurance, according to insurance companies, will show an increase in volume by the end of 2019.
Also, the development and functioning of the insurance business will be facilitated annually by the improvement of the activities of insurance companies and the support of this area from the Government of the Russian Federation.
Based on the foregoing, we can conclude that the insurance market, taking into account the correct approach to solving all the main problems in this area, will develop in the coming years, and has prospects for its further improvement.
Bibliography
1. Aksyutina S.V. Insurance market of the Russian Federation: problems and prospects // Problems of territory development. - 2017. - No. 2 (70). - pp. 115-126.
2. Bakanaev I.L., Ashaganov A.Yu., Tsokaeva L.A., Movtigova M.A. Problems and prospects for the development of the insurance market of the Russian Federation // Young scientist. - 2017. - No. 23. - S. 468471.
3.Reference portal about insurance [electronic resource] - Access mode. -
4. Strategies for the development of insurance activities in the Russian Federation until 2020, approved. by order of the Government of the Russian Federation of July 22, 2013 No. 1293-r // Collection of legislation of the Russian Federation. - 2013. - No. 31. - Art. 4255.
5. Central Bank of the Russian Federation [electronic resource] - Access mode. - URL: http://www.cbr.ru/ (access date: 10/21/2018)
Grosheva Angela Andreevna, student f-that BIST Hamidulina Diana Gumyarovna, student f-that BIST
Novocherkassk engineering and meliorative institute of A.K. Kortunov of the Don GAU, Russia, Novocherkassk.
CURRENT STATE AND PROSPECTS OF DEVELOPMENT OF THE INSURANCE MARKET AS KEY LINK OF THE FINANCIAL SYSTEM OF THE RUSSIAN FEDERATION
Abstract. In article the current state of the market of insurance services in the Russian Federation is considered in detail. Versatile issues of the insurance market and also his prospect of development for the next several years are touched. The theoretical argument of a condition of the corresponding market in the conditions of currently existing economic and political situation in Russia is submitted.
Keywords: insurance, market of insurance services, property rights, covering of losses.
ANALYSIS OF THE LAND MARKET IN KURSK
AS OF OCTOBER 2018 Koshkin Andrey Aleksandrovich, student (e-mail: [email protected]) Alexey Vasilievich Shleenko, Ph.D., Associate Professor Southwestern State University, Kursk, Russia (e-mail: [email protected])
This article analyzes the market for land plots in the city of Kursk in October 2018 for specific districts, based on aggregate price list data for various purposes.
Key words: district, analysis, purpose, land plot, market.
A number of large enterprises in various industries are located in the Railway District of Kursk: electrical and radio engineering, defense, mechanical engineering and metalworking, pharmaceutical, medical, light, food; There are over 623 trade, catering and service enterprises, including two shopping centers, a food market, about 50 catering organizations, and shops of various types.
Table 1 shows the cost of land plots in the Zheleznodorozhny district of Kursk according to the Avito website
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