Economic sciences
PhD candidate
Zh.B. Kebekpayeva
T.Ryskulov Kazakh Economic university
PROSPECTS OF SINGLE EURASIAN INSURANCE MARKET
DEVELOPMENT
Abstract This paper investigates
prospects of single Eurasian insurance market development. Eurasian integration
creates conditions of free movement of the goods, the equities and labor power
between the countries participants of this integration association. During the
period from 2012 to 2015 Russia, Kazakhstan and Belarus intend to provide equal
access of the countries – participants of the space on the market of financial,
bank and insurance activities, to create equal legal conditions for investing
activities, to remove restrictions in currency transactions. Thus, Eurasian
integration gives a powerful impulse to development and forming of general
financial space and as a result of the single insurance market.
Key words: Eurasian insurance
market, financial integration, Common Economic Space
Financial
integration of the countries assumes forming of the single insurance market.
Result of functioning of the single insurance market is ensuring freedom of
promotion of insurance services, the equity and the insurance brokers,
promoting development of the competition and growth of efficiency of work of
insurers. Nowadays in CIS countries insurance
becomes the powerful lever of development of the economy, providing its stable
functioning. Annual financial turnovers of insurance companies are comparable
to indicators of banking sector, they possess a huge investment potential: as
holders of policies finance insurance companies.
Since
the second half of the XX century the markets of insurance of the various
countries began to be developed actively in the direction of creation of single
international insurance space. Bright example of successful integration of the
insurance markets is European Union
(EU) which is regulated by general for all EU countries the directives,
involving all the spheres of insurance business . Experience of the European
countries shows that integration can
occur step by step: at first regarding transactions by types of other, than life
insurance, and then, on measure of experience accumulating, and on life
insurance. The history of creation of the single European insurance market confirms prospects of such mechanism of
integration. So, the first Directive of Council of the European Community from
24th of July , 1973 envisaged the decision about access to activities in the market of the countries of Community
by types of direct insurance, except life insurance. The corresponding
Directive on life insurance was accepted on
the 5th of March, 1979 [1]
Modern
insurance systems of the countries - participants of Common Economic Space
(CES)- were created on a general starting base which was the Soviet`s system of
national insurance therefore, despite distinctions in the directions and rates
of development of their insurance markets, now there are similar problems which
are necessary to be solved in the process of forming of the single insurance
.The most effective methods of the problem resolution of integration is rapprochement of the legal framework of
regulation of an insurance activity.
Process
of economic integration should be ordered and organized for simultaneous
providing of three conditions: minimization of economic, social and
organizational risk; increases in productive potential and competitive
possibilities; coordination of norms and standards in the field of regulation
with requirements of WTO and EU [2].
There
are the following problems interfering dynamic process of forming of the single
insurance:
•
Different standard − legal base of regulation of an insurance activity
and system of the insurance supervision, caused by national features;
•
The non-comparable quality level of offered insurance products;
•
Various macroeconomic conditions of activities of insurers;
•
Various level of insurance culture of the population
Considering
these factors, it is possible to allocate the main recommendations about
forming of the mechanism of functioning of single insurance space for CES
territories.
The important directions of integration are
creation of joint international insurance companies and pools, and also the
mutual admission of insurers, reinsurers
and insurance brokers on the financial markets of the countries of CES.
Within
actions for forming of the total insurance market of state members of CES the
solution of a complex of the tasks directed on harmonization of the legislation
on regulation of operations in the market of insurance services is necessary,
for forming of general system of insurance protection of the rights and interests
of policyholders, insurers and investors, on increase of
level of insurance culture, and also to develop common requirements to carried
out in a state policy in the field of regulation of the insurance markets and
supervision of an insurance activity.
In
case of integration of the insurance markets, countries taking in it part should know about the organization of
systems of insurance of the countries interacting with them. It is very
important to study structure of the insurance markets of CES, insurance
regulation and the main tendencies of development of insurance in these
countries. In this article the comparative analysis of the legislation of three
countries on the following questions is carried out:
•
licensing of an insurance activity;
•
forming of the authorized capital of insurance organizations;
•
conditions of implementation of reinsurance activities.
The
analysis of the above-stated questions gives the chance to determine optimum for the Kazakhstan
insurance market strategy of interaction with the insurance market of the
countries of CES.
Nowadays,
both Russian, and the Kazakhstan insurers aim not to lag behind time
requirements, offering clients all new and advanced insurance services.
Authorized state bodies regulating the activities of insurance
organizations and other professional participants of the insurance market in
the countries of CES are the following:
•
In the Russian Federation - the Federal Service for Financial Markets;
•
The Republic of Kazakhstan - Committee of control and supervision of the
financial market and the financial organizations of National Bank of the
Republic of Kazakhstan
•
Republic of Belarus - state regulation of an insurance activity is performed by
the President of the Republic, National assembly of Republic of Belarus,
Council of ministers of Republic of Belarus, the Ministry of Finance.
In
the insurance market of the Russian Federation and Belarus have the right to
perform activities the insurance companies having various legal forms of
business, such as: joint-stock company, limited liability company and others.
The
legislation of the Russian Federation doesn't establish any special
requirements to forms of business ownership of insurance companies. The only
requirement is that as the insurer only the legal entity can act. Whereas, in
Kazakhstan insurance organizations are obliged to be registered as joint-stock
companies that substantially complicates "entrance" in the insurance
market, but at the same time guarantees stable accomplishment of the
liabilities accepted on insurance contracts.
Nowadays
the amount of insurers is 572 in Russia
572, 38 in Kazakhstan, 25 in Belarus. National requirements for
licensing of an insurance activity in CES countries generally conform to
international standards which determine requirements for activities
differentiation in the sphere of life insurance and general insurance. Process
of separation of an insurance activity on general insurance and life insurance
in Kazakhstan and Belarus is fully complete, however in Russia these
requirements were introduced in 2007, because of it the process of separation
of insurance companies isn't ended.
The
analysis of receipt of insurance premiums in CES countries on voluntary and
obligatory types of insurance in 2010 shows that amounts of collected insurance
premiums by insurers of Belarus is 0,7 %, Kazakhstan is 2,5 % from amount of
the accepted insurance premiums of the Russian insurers.
From
all participating countries of CES only in Russia there is a compulsory medical
insurance, at the same time quantity and types of compulsory insurance in all
countries not the identical. Along with it, there are general obligatory types,
such as liability insurance of owners transport and others. The structure of
receipt of insurance premiums on obligatory and voluntary types of insurance (
2 pic.) shows that in Russia and Belarus receipt of premiums on obligatory
types of insurance is about 60 % of all collected insurance premiums whereas in
Kazakhstan of 85 % of all receipts is the share of voluntary property
insurance.
Conclusions. Creation of
the single insurance market in the countries of CES is a logic consequence of
financial integration on the territory
of these countries. By 2020 of the countries of CES step by step will have
unified the insurance legislation according to the European directives.
Creation of the single insurance market assumes acceptance by the countries of
CES of general principles and approaches according to which insurance
organizations will work. In particular determination of common parameters of
work of the insurance organizations mentioning qCEStions of implementation of
single approaches to system of risks reinsurance, establishment of general
principles of licensing, forming of reserve, the equity, classification of
types of insurance, determinations of requirements to solvency and financial
stability. Besides, process of creation of the common insurance market requires
considerable time as each of the countries has the regulatory legal base. As a
whole creation of the common insurance market will be performed step by step
taking into account economic conditions of each country.
References:
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law and Economic Analysis of Policy and
Institutes// Master thesis of University of Hamburg// 2006 ñàéò http://www.emle.org/_data/Doron_Ziv-Av_-_Competition_versus_Regulation_in_the_Insurance_Market.pdf
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