Insurance market development in the context of efficiency of underwriting process

Abstract

Introduction. The effectiveness of insurance companies underwriting is usually assessed in terms of insurance market development and financial results of insurance. In fact, analysis of the insurance market state and the assessment of the efficiency of functioning of insurance companies can be determined as a reflection of the quality of the selection process and of underwriting of risks wich are taken for insurance. It should be noted that there is no direct dependence of the insurance market on underwriters, since the latter is the internal process of each insurer. However, the quality of individual insurance portfolio of individual insurance company depends on it. Their total size and structure allow to characterize the effectiveness of underwriting in the insurance market.

Goal. The purpose of the article is a study of the state of Ukrainian insurance market as a result of activity of insurance companies on the formation and management of the insurance portfolio. It allows to characterize the effectiveness of their underwriting policy.

The method (methodology). The methods of collection and compilation of information have been used to achieve the goal of the article. In order to study the effectiveness of individual factors on the change in volume and structure of insurance premiums and insurance payments their retrospective analysis has been carried out.

Results. According to the results of the study we have singled out the main trends which are typical for the Ukrainian insurance market in terms of formation of a balanced insurance portfolio. It has been proved that one of the internal factors of activation of the insurance business development is an effectively built process of underwriting of individual insurance company. The application of this approach will ensure profitability and financial stability of insurance companies through the detailed analysis and selection of risks.