Regional insurance market: to be or not to be?
Olga Savchenko, Svetlana Yanova
Available Online June 2019.
- https://doi.org/10.2991/cssdre-19.2019.59How to use a DOI?
- regional insurance market, concept of proportional regulation, regional insurers, risk-based approach, Solvency II
- This article is devoted to topical issues of the development of regional insurance markets in the face of changing regulatory requirements and the structure of the national insurance system. The main subject of discussion is the future of regional insurance, being squeezed out of the regional economy due to the increasing concentration processes of the domestic insurance market. The authors present the results of assessing the level of development of the insurance market in the North-West Federal District in the context of regional and federal insurers, who demonstrate a threatening trend of a sharp decline in regional insurance volumes, starting in 2010. In the research environment, there was an opinion that the main reason for the withdrawal of regional insurance companies is the increase in the volume of supervisory measures to small and medium-sized insurance organizations, which require a non-proportional increase in management costs compared to large business structures. Based on multiple regression models, the authors complement the analysis of the impact of current regulatory changes by the new regressor — the high volatility of the national currency exchange rate. Based on the ARIMA class models, four scenarios are presented for the potential reduction in the number of regional insurers in the North-West Federal District, who with a high probability predict the disappearance of their own regional insurance market in the near future. The article also analyzes the qualitative parameters of the regional insurance market, proving its necessity and financial soundness in terms of using proportional or commensurate regulation. Measures of differentiated regulation of insurance companies depending on their capital, fees and types of insurance have already been approved as part of the European practice of Solvency II as verification criteria.
- Open Access
- This is an open access article distributed under the CC BY-NC license.
Cite this article
TY - CONF AU - Olga Savchenko AU - Svetlana Yanova PY - 2019/06 DA - 2019/06 TI - Regional insurance market: to be or not to be? BT - Volgograd State University International Scientific Conference "Competitive, Sustainable and Safe Development of the Regional Economy" (CSSDRE 2019) PB - Atlantis Press SP - 294 EP - 299 SN - 2352-5428 UR - https://doi.org/10.2991/cssdre-19.2019.59 DO - https://doi.org/10.2991/cssdre-19.2019.59 ID - Savchenko2019/06 ER -