The economic essence of state regulation of insurance activity in the conditions of economic transformations, based on a set of appropriate financial and economic mechanisms, tools related to diversification of insurance services, transparency of insurance relations, formation of modern infrastructure of insurance environment, institutional development of insurance activity, coordination of interests public administration and insurance companies, which will contribute to a qualitative increase in the level of competitiveness of the financial market, insurance risk management system, prudential supervision in the field of solvency of insurers, modernization of the insurance system. The experience of insurance system development in countries with developed and transformational economies is systematized, including relevant financial instruments, features of state regulation and institutions that provide supervision and control over the development of financial markets. Approaches to building a structural model of institutional support for the development of insurance activities, which reconciles the interests of public administration and insurance companies, have been developed.
Developed provisions on the main determinants of insurance market development, including increasing the level of capitalization, infrastructure, stability, development of a mechanism to protect insurance market participants, improving mechanisms for monitoring financial stability and security of the insurance market, which will promote the development and application of effective approaches to state regulation of insurance activities as part of the modernization of the country’s financial system. Approaches to state regulation of reinsurance activities have been improved, including institutional regulation of reinsurance operations, transfer of risks on the principles of reciprocity of insurance premium redistribution; provisions on the formation and directions of development of the domestic insurance system, taking into account the need to strengthen the influence of financial markets on economic growth; approaches to the system of prudential supervision, which consists in the use of state regulation of financial services markets, assessment of the general financial condition of the institution, prevention of the risk of insolvency of insurance companies.
