Magay G.V.,

Postgraduate student of Cherkasy

State Technological University

Strategic orientations of insurance market development

in Ukraine

In transformational market conditions the insurance market development acquires great significance in Ukraine. European integration of Ukraine causes creation new kinds of insurance and restructuring existing ones, establishing obligatory insurance. In economically developed countries property and life insurance is a norm, as it meets the interests of the insured person. The population of Ukraine has not yet got accustomed to insurance, they think over the advantages of the insurance policy owners, when they get to unpredictable situations and incur big losses. Mass media must more inform our countrymen about insurance companies activity. Among a lot of problems of our country one should admit decrease in population, connected with the low level of health and citizens average life time, with tendency to decrease.

Taking into account present insurance problems, for the further market insurance development following propositions are suggested on the following orientations:

1. In the agriculture. It is necessary to increase the insurance rate of agricultural risks in Ukraine, as near 3 percent of risks are insured in agriculture nowadays, but in the majority developed countries the insurance rate of agricultural risks is 90-95 percent. In the first place, it is necessary to implement the concept of the national agricultural risks program insurance, the project of which was published in the 19^th of December, 2007. It is necessary to activate the development of the agricultural risks insurance infrastructure, particularly:

- establishment district departments for rendering services on the agricultural risks insurance in the leading insurance companies;

- mass media publication of the specialized programs on warranty on the insurance cases payment, increase of motivation of economic players for risks insurance connected with the crop capacity, environment conditions, increase of trust to the departments of the agricultural risks insurance;

- increase of agricultural risks insurance treaties quantity by means of creation consulting centers for explanation the agricultural risks insurance work;

- increase by employment agencies the number of qualified specialists, possessing the regulation agricultural risks experience;

- to establish region and district departments of agricultural risks insurance, providing necessary economical and legislative foundation for creation and effective work of the district and region departments.

2. In the medicine. Gradual implementation of the obligatory medical insurance is necessary. Before this it is necessary to arrange explanatory work with the population for providing personal responsibility of citizens for health;

For establishment the new kind of insurance the finance ministry should elaborate its sponsorship system. One suggests creating Medical Insurance Fund of Ukraine, accomplishing function of the insurance company. For this it is necessary:

- to establish official payment for medical services direct to the cashier's office or bank account, as by “free” medical assistance they are rendered non- qualitatively or not rendered at all with the preferential patients insurance. On the contrary, the are non-formal cash payments of citizens, which make impossible obtaining qualified medical assistance by non-social maintenance population (incurable and chronic patients, handicapped persons, unemployed and low income people). Ukrainian society spends a great amount of money for health protection. That’s why it is necessary to elaborate the standard value calculation strategy of medical services for different diseases, which is necessary for setting the prices of services, to determine the objects of economical control and costs level control strategy and efficiency of rendering medical paid services;

- to implement obligatory medical insurance for medical services quality increase rendered in public sector, on the first aid level particularly. Each person, addressing to a medical institution, should have an insurance policy, ensuring services payment, therefore obtaining urgent qualified aid;

- The Supreme Council of Ukraine (The Verkhovna Rada) has to adopt a law “About obligatory medical insurance” for effective work of Medical Insurance Fund, providing in full measure economical and social immunity of the middle and low-income groups of the population, insured the everybody’s rights for qualitative medical aid, necessity of the insurance deposits of the citizens for health and life security. The bill must be based on the three main principles: statehood, common necessity, and it must function on the non-commercial basis. Statehood – the state must be a guarantor for the population; common necessity – all the citizens without exception must be insured and has the right to obtain medical aid; non-commercial advantage – the Medical Insurance Fund profits must be a source of services improvement in medical institutions, but not means of enrichment. Ukraine has a certain experience in bill creation “About obligatory medical insurance”, but not one was adopted by the Verkhovna Rada;

- to include to assessments from the salary the ones to Medical Insurance Fund, providing non-employed with the medical insurance.

3. In construction. It is necessary to implement construction risks obligatory insurance. Nowadays in construction an acute means shortage appears, requiring additional financial attractions. Necessary condition for increasing foreign investments is proper control and high responsibility of the project participants, what has to reduce financial risks quantity.

4. In insurance infrastructure. It is necessary to create twenty-four-hour service centers in the insurance companies central offices. Insurant accidents occur not only during working time, so it is necessary to consult insured persons immediately, to remove their high emotional stress.

5. In the social insurance fund. To activate the activity of the collector services for repayment overdue debts by the largest debtor-enterprises to the Ukrainian Fund of the necessary state social insurance in case of unemployment which constituted 32,5 million hryvnyas on the 01.01.2008.

Therefore the realization of these orientations of the insurance market development will promote the solution many tasks, connected with the population reduction, the financial discipline maintenance, attraction of investments to production, construction, realization of the necessity of insurance financial and agricultural risks, implementation obligatory medical insurance, rendering the guarantees of the confidence in the future.