UDC 368+659.127.4
Baluk, N. R. (2014). Strakhuvannya fizychnykh osib: analitychnyy ohlyad doviry spozhyvachiv [Individual insurance: analytical overview of consumer confidence]. Rehional'na ekonomika - Regional Economy, 72(2), 167-177. [in Ukrainian].
Sources: 16

Authors

Resume

It was determined that one of the success factors of the insurance companies on the market is the credibility of consumers. Consumer confidence is at the heart of insurance policyholders behavior that is influenced by a number of factors. According to the proposed author’s classification, these factors can be divided into social, cultural, personal, motivational, psychological, situational and socio- economic. The current stage of development of the Ukrainian insurance market is described in terms of passive demand for insurance services, due to the existence of a significant proportion of fictitious insurance in the market, underdevelopment of insurance mediation, the low level of consumer protection, low purchasing power, lack of complete and accurate information insurance, ignorance of most consumers of the need for and benefits of insurance, the formation of negative stereotypes of insurance consumers and extremely low levels of consumer confidence. The aim of the study is to identify key trends in the Ukrainian insurance market in the segment of individuals with risk insurance and the level of public confidence in insurance by analyzing changes in key indicators of the insurance market. Economic Statistical Methods and sociological research were applied. The analysis of the major indicators of Ukraine’s insurance market for all types of insurance and insurance of individuals showed the existence of significant barriers in increasing consumer confidence. The studies found that among registered in 2012, 414 insurance companies, 12% accounted for 100 % of the market, the remaining 88% can be considered as captive insurers. The market has high fictitious reinsurance, including optimization schemes and level of fictitious reinsurance. More than 90% of the names of the insurers, according to a sociological study are unfamiliar to consumers, only 4.4 % of respondents were able to recall the names of 20 insurance companies. The value of performance of insurance companies in 2012 and their comparison with those of previous years showed lower payments for certain types of insurance. It is proved that there is a significant market share of insurance services, which consumers are not aware of. The problem of transparency of information in the insurance market was outlined, which concerns the activities of insurance companies and the range of insurance products and relationships with insurers-individuals. The main measures of effectiveness of the insurance market and increase confidence of insured individuals are: improvement of existing insurance law based on international standards; combination of state regulation of insurance of self-regulation and co-regulation of the market; popularization transparency of information in the insurance market, insurance companies and their financial performance, insurance services, etc., available in the public journals, online resources, and on the websites of insurers; presence of independent ratings of insurance companies and their services; protection of human rights of insured individuals with effective mechanisms for dealing with all complaints and quality of insurance services; raising awareness about particular insurance services, especially their work with different types of insurance; differentiation of voluntary and involuntary insurers purchase, insurance policies to reduce distortion statistics of the insurance market, and to enable individuals, particularly in obtaining credit, self-selection of the insurer; increasing popularity of the use of insurance services as independent financial services and not as a mandatory application using banking services; enhance service standards by insurers in insurering individuals.

Keywords:

individual insurance, insurance premiums, the amount of insurance benefits, the level of benefits, the insurance culture, insurance consumer confidence