Competition and its influence on the development of the insurance market

Abstract

Problem. The emergence of a new number of business entities of all forms of ownership and their own methods of doing business lead to the development of the market economy infrastructure and its formation in Ukraine. The threat of bankruptcy, fierce competition leads entrepreneurs to the need to apply new market methods for recovering costs and doing business. Therefore, each insurance company plans its activities in choosing the optimal directions of its work in order to achieve maximum profits operating today on the insurance market and leading positions among its competitors, both in terms of providing services and strategic development.

In a market environment, fierce competition gives each insurance company the opportunity to efficiently and efficiently use its resources, provide high-quality services, conduct its business transparently in accordance with current legislation and be competitive on the market. To have a leading position in the insurance market helps with the obligatory rating of each insurance company, which prompts it to improve the key indicators. Thus, solving the current actual problem of each insurance company, as improving its rating among others, will provide reliability, solvency and financial independence of this company.

Aim and tasks. The purpose of the article is to consider the theoretical foundations of rating of insurance companies for their further competitive advantages in the insurance market of Ukraine.

The results. The article describes the concept of ratings of insurance companies. Conducted competitive analysis of  TOP-20 indices of insurance companies. Ways of competitive advantages are offered on basis of these indicators.

Conclusions. Competition in the insurance market provides a fair competition among insurance companies in order to receive new customers, which will ensure greater profits. Fair competition ensures on the insurance market an improvement in the quality of insurance for insurers, introduces new types of services and the latest technologies for their provision, improves existing ones, develops the market itself and finds compromises among all its participants. The analysis of insurance companies' ratings shows strengths and weaknesses in the work of each company, leads them to the leading positions and ensures transparency in the market. Thus, the introduction of obligatory rating of each insurance company positively influences the development of a further strategy of the company's development, its organizational structure, the quality of providing insurance services and, above all, its competitiveness in the insurance market of Ukraine.

Keywords:

the insurance market, insurance companies, competition, ratings, competitiveness, insurance reserves, assets, insurance premiums, insurance indemnity, insurance, reliability of insurance company, liquidity, solvency