Simulation modelling of the algorithm of state regulation of financial stability of an insurance company

Abstract

At present, Ukraine as a whole underestimates the possibilities of insurance as an influential tool for the development of the national economy. The potential of insurance, which is aimed at creating a market system of protection of property rights and interests of owners, maintaining socio-economic stability in society, is not used at full capacity. Insurance, as an integral part of the financial sector of the economy, accounts for a very small share in the structure of GDP.

Ukraine's entry into the system of world economic relations and restructuring of its economy on a market basis requires the development of insurance business in Ukraine. The author proceeds from the fact that the most effective step in solving these problems should be the state regulation of insurance activities in Ukraine.

Article main unresolved theoretical and practical issues of Government regulation insurance activities in Ukraine. It proposes ways and orientations of increasing the efficiency of insurance activities in Ukraine. Role of public institutions in formation and regulation of insurance market are investigated. Functioning of system of state regulation of insurance activities is analysed; ways and possibilities of its improvements are found. Peculiarities of official insurance policy are revealed. Main methods and instruments of state regulation of insurance activities are considered. Existing in world practice systems of organization of regulation and control over insurance activities are covered. Foreign experience of state regulation of insurance activities is evaluated in terms of possibilities of its adaptation to national economy of Ukraine under present conditions of its national insurance market. Moreover, is justifies that without continuing active role of the Government it is impossible to successfully resolve urgent issues of economic and social nature focused on the development of insurance activities, increasing its effectiveness and impact on the economy.