Analysis of Rating Positions of Insurance Companies on International and National Markets

  • Tetiana POLOZOVA Kharkiv National University of Radio Electronics, Kharkiv, Ukraine
  • Andrii LUTSKYI King Danylo University, Ivano-Frankivsk, Ukraine
  • Myroslav LUTSKYI King Danylo University, Ivano-Frankivsk, Ukraine
  • Roman ZVARYCH King Danylo University, Ivano-Frankivsk, Ukraine
  • Maksym KOLІSNYK Kharkiv National University of Radio Electronics, Kharkiv, Ukraine

Abstract

The purpose of the article is to analyze the rating positions of insurance companies. The article explores the development trends at the insurance services market of Ukraine. The paper contains review of the segmentation criteria for insurers according to the ‘The World’s Largest Public Companies’ methodology (diversified insurance, life and health insurance, property insurance and casualty insurance). This rating method applies a set of indicators such as income, sales, assets and market value of the company.


The paper identified the leaders in each segment of the international insurance market in 2018. The research findings revealed the absence of Ukrainian companies in the rating because of their low potential and insufficient level of development. The authors conducted analysis of insurers’ positions at the national market in the rating reported by news portal ukrstrahovanie.com.ua. The main ranking approach is multi-factor analysis. This method employs the following indicators: assets; payout level; insurance funds; the share of premium collection from insurance classes; transparency of the insurer's statements. The information for the insurers’ rating was collected from the web-site of Mind business. The rating considers financial stability and business activity of insurance companies as main factors gathered from open public sources. The rating methodology consists of several factors that affect the attractiveness of insurance companies for the customers. The paper developed system of indicators for the rating of insurers in Ukraine according to the journal ‘Insurance TOP’ (insurance classes, economic indicators, business entities). The evidence shows potential for growth of domestic insurance enterprises at the national market but also the rankings confirmed low level of their competitiveness at the international market.

References

[1] Kozmenko, O.V., Kozmenko, S.M., and Vasylieva, T.A. 2012. Novi vektory rozvytku strakhovoho rynku Ukrainy [New vectors of development of the insurance market of Ukraine]. Sumy: Universytetska knyha [in Ukrainian].
[2] Matvieiev, V.V., Haidarzhyiska, O.M., and Otroshko, V.P. 2018. Strakhovyi rynok Ukrainy: suchasnyi stan ta perspektyvy rozvytku [Insurance market of ukraine: modern state and prospects of development]. Molodyi vchenyi – Young Scientist, 2(2): 727-731[in Ukrainian].
[3] Melnyk, O.I., Kulbachna, L.A., and Zhulim, M.S. 2018. Analiz suchasnoho stanu strakhovoho rynku v Ukraini [Analysis of the current state of insurance market in ukraine]. Modern Economics, 7: 107-113 [in Ukrainian].
[4] Purii, H.M. 2018. Strakhovyi rynok Ukrainy: suchasnyi stan ta problemy rozvytku [Insurance market of ukraine: current state and problems of development]. Efektyvna ekonomika - Effective Economy, 10. [in Ukrainian].
[5] Polozova, T., Beliavceva, V., and Perepeliukova, O. 2018. Study on the state of international competitive positions of Ukraine. Zbirnyk naukovykh prats ‘Finansovo-kredytna diialnist: problemy teorii ta praktyky’ – Collection of Scientific Proceedings Financial and Credit Activity: Problems of Theory and Practice, 3(26): 236-244.
[6] Pshyk, B.I., Rekunenko, I.I., and Shelestak A.T. 2015. Napriamy pidvyshchennia rivnia finansovoi bezpeky strakhovoho sektoru v Ukraini [Areas of improvement of financial security insurance sector in Ukraine]. Sotsial'no-ekonomichni problemy suchasnoho periodu Ukrayiny – Socio-economic problems of the modern period of Ukraine, 2: 50-53. [In Ukrainian].
[7] Rud, I. 2016. Analiz strakhovoho rynku Ukrainy [Analysis of the insurance market of Ukraine]. Hlobalni ta natsionalni problemy ekonomiky – Global and national problems of the economy, 10: 856–859. [In Ukrainian].
[8] Sova, O.Yu. 2018. Osnovni trendy strakhovoho rynku Ukrainy [The main trends of the insurance market in ukraine]. Vcheni zapysky Universytetu ‘KROK’ – Scientific Notes of ‘KROK’ University is ‘KROK’ University, 3(51): 59-67. [In Ukrainian].
[9] Ofitsiinyi sait Motornoho (transportnoho) strakhovoho biuro Ukrainy [The official website of the Motor (Transport) Insurance Bureau of Ukraine]. Retrieved from: http://www.mtsbu.ua/ua/about_us/general/
[10] Ofitsiinyi sait Natsionalnoi komisii z rehuliuvannia rynkiv finansovykh posluh Ukrainy [Official site of the National Commission for the Regulation of Financial Services Markets of Ukraine]. Retrieved from https://www.nfp.gov.ua [in Ukrainian].
[11] Pidsumky diialnosti strakhovykh kompanii Ukrainy [Summary of activity of insurance companies of Ukraine]. Retrieved from http://www.forinsurer.com.ua [in Ukrainian].
[12] Reitynh strakhovykh kompanii svitu (Forbes Global). [Rating of insurance companies in the world (Forbes Global)]. Retrieved from https://www.ukrstrahovanie.com.ua/ratings/top-strahovyh-kompaniy-mira
[13] Reitynh strakhovykh kompanii Ukrainy 2018 [The rating of Ukrainian insurance companies in 2018]. Retrieved from https://www.ukrstrahovanie.com.ua/ratings/reyting-strahovyih-kompaniy-ukrainyi [in Ukrainian]
[14] Reitynh strakhovykh kompanii Ukrainy 2018 [The rating of Ukrainian insurance companies in 2018]. Retrieved from https://mind.ua/publications/20186445-rejting-strahovih-kompanij-2018-yak-rinok-strahovikiv-v-ukrayini-vihodit-iz-zastoyu [in Ukrainian]
[15] The World’s Largest Public Companies [Naibilsh velyki publichni kompanii svitu]. Retrieved from https://www.forbes.com/global2000
Published
2019-12-30
How to Cite
POLOZOVA, Tetiana et al. Analysis of Rating Positions of Insurance Companies on International and National Markets. Journal of Advanced Research in Law and Economics, [S.l.], v. 10, n. 8, p. 2490 – 2496, dec. 2019. ISSN 2068-696X. Available at: <https://journals.aserspublishing.eu/jarle/article/view/5294>. Date accessed: 20 apr. 2024. doi: https://doi.org/10.14505/jarle.v10.8(46).26.