Interdependence of insurance need and development insurance markets

Abstract

On the one hand, the insurance market is no different from other markets, as it has market entities, supply, demand, price and "product" (sale of security). Still, on the other hand, it is specific in relation to all other markets; the market subject to sale is a risk that may or may not be realized in the future. Insurance is a form of risk management, primarily moderate to reduce financial losses or transfer of risk from the insured to the insurance company, with insurance premium payment. The security market has its own branch institutional network consisting of: companies (important factors in the global financial economy), intermediaries (brokers), insurance agents (banks, companies), directorates for business supervision of insurance organizations, professional associations (insurance associations), the association of actuaries, etc. In addition to them, an important place belongs to the individuals and legal entities like insured objects. This topic has been insufficiently researched in practice, so the authors consider it important.