Effective insurance mechanism: methodological approaches to evaluation

Victoria Baranova
Doctor of Economics, Professor, Head of Financial Management and Stock Market Department, Odessa National Economic University, Ukraine, e-mail: lavika@rambler.ru, ORCID ID: https://orcid.org/0000-0002-1724-957X

Cite this article:

Baranova, V. (2021). Effective insurance mechanism: methodological approaches to evaluation. [Efektyvnyi mekhanizm strakhuvannia: metodychni pidkhody do otsiniuvannia], Socio-economic research bulletin, Vìsnik socìal’no-ekonomìčnih doslìdžen’ (ISSN 2313-4569), Odessa National Economic University, Odessa, No. 1 (76), pp. 127–134.

Abstract

The subject of research, which is covered in the article, is the insurance mechanism, namely: the essence of the insurance mechanism, research methodology, methods for determining the effectiveness. The purpose of the study is to deepen the theoretical foundations for the application of the insurance mechanism by insurers and to formulate approaches to assess its effectiveness. The research methodology is general and special methods. As a result of research on the basis of processing of scientific sources the essence of the insurance mechanism is defined. The analysis of methodological approaches to the study and study of the insurance mechanism allowed to justify the need to supplement them with a systematic approach, which provides consideration of the mechanism from the standpoint of complexity and allows to identify systemic gaps in the operation of insurance companies, government regulation. The insurance mechanism is considered from the point of view of efficiency of its functioning, requirements concerning tasks of the insurance mechanism which degree of performance will testify to efficiency of its action are formulated. The concept of socially significant types of insurance is offered, which allows to expand the meaningful definition of the category of insurance. Methods for evaluating the effectiveness of the insurance mechanism in accordance with the formulated tasks are defined, calculation formulas are given, according to which it is possible to evaluate the efficiency of the insurance mechanism for the components of the tasks. The use of the introduced concepts in the theory of insurance allowed to formulate proposals for improving the insurance legislation in terms of compulsory insurance and government regulation. The scope of the obtained results is the state regulation of non-banking financial institutions activity, and insurance companies activity.

Keywords

insurance mechanism; efficiency; socially significant types of insurance; evaluation methods; state regulation; tasks of the mechanism; process and system approaches of research.

JEL classification: G220; G230; DOI: https://doi.org/10.33987/vsed.1(76).2021.127-134

UD classification: 336.02.316

This work is licensed under a Creative Commons Attribution 4.0 International License. To view a copy of this license, visit http://creativecommons.org/licenses/by/4.0/

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