Tyshchenko D. State regulation of insurance activity in Ukraine

The dissertation deals with theoretical and pragmatic issues of state regulation of insurance activities in Ukraine. Emphasis is made on essential content of the concept "state regulation of insurance activity", its logical relationship with the economic nature of insurance services. It is proved that the presence of various externalities in the insurance market is a prerequisite for the emergence of state regulation of insurance activity. It is determined, that specific features of insurance as an economic category determine the use of state regulatory instruments concerning the insurance activities. The key factors that determined the development of state regulation system of insurance activity in Ukraine are highlighted. These include: the dominance of political factors over purely economic; ignoring the real state of domestic insurance market; tactical direction of regulatory measures and limitations of its instruments. The existing approaches to the regulation of insurance activity are in fact “post factum regulation”, when the vast majority of measures are reaction to events that have already occurred in the insurance market. Assessment of the key quantitative indicators of insurance activity development in Ukraine showed that effectiveness of its state regulation remains at low level. The necessity to develop and implement an effective and transparent system of state regulation monitoring of insurance activity in our country is argued. In the dissertation, a set of measures aimed at developing of state regulation model of insurance activity in Ukraine is developed. In particular, the emphasis is made on the necessity to create a state insurance company in Ukraine and proposed measures aimed at solving problems in this area.The necessity of changes in the tax regulation of insurance activity, as well as the establishment of moratorium after implementation of proposed measures is justified. The possibilities of legislation improving in Ukraine from the point of view of foreign capital functioning in the domestic insurance market are studied. The directions of legislation development concerning the issues of interaction between insurance companies and other participants of insurance market, primarily in the context of rights protection of insurance services consumers, are disclosed. The emphasis is made on the necessity to overcome the negative consequences of information asymmetry. It is emphasized that only complex approach to solving problems in the state regulation of insurance activity will make it possible to count on the sustainable development of insurance sector in Ukraine.