Methods and approaches of the regional insurance market assessment

Abstract

Introduction: The insurance market plays an important role in shaping the conditions for sustainable functioning of the economy in general and the economy of its individual regions. There is a need to assess the level of the insurance market changes in order to respond timely and form the directions of the state insurance policy as well as the vectors of the national insurance market development. Objective: to provide a theoretical study of existing methods for estimation of the regional insurance market development and to develop an algorithm for such an assessment. Results and Discussion: assessment of the level and trends of the regional insurance market is carried out by various methods, the choice of which depends on the specific objectives of the study. Methods used for the analysis and estimation of the market performance can be divided into three groups to assess the level of the regional insurance market development: analytical methods, methods of sociology, economic and mathematical modeling methods. Analytic methods include most traditional methods of regional and reproduction analysis. These methods are based on different operations with statistic data. Methods of sociology use tools of assessment of the regional insurance market development level on a base of the generalization of information and rating provided by the respondents. Methods of economic and mathematical modeling are used to predict the performance indicators and to determine the trends of the regional insurance market. Significant problem in assessing the level of the regional insurance market development is the formation of the set of performance indicators, which characterize it. Conclusions: Insurance service is "secondary service", and the demand for it largely dependents on the state of "primary market" of goods and services. Therefore, the use of most of the methods and techniques require adjustment and transformation according to the knowledge base changes, changes in the legislative system ofUkraine, changes in monetary policy, social policy, and should also take into account the welfare of the nation. The most promising in practical terms are the integral approaches as the most productive ones, and among them - sociological methods and techniques of expert assessments based on economic and mathematical methods used the views of respondents and experts.