Significance of the insurance market for the financial system of Ukraine

In conditions of developed market relations and strengthening of globalization processes, the development of the insurance market is determined by the socio-economic needs of the society’s development. The paper examines the definition of “insurance market” and shows the place of insurance companies among other key players in the financial system of Ukraine. The results of the study showed that the insurance market should be considered as a special sphere of monetary relations, where the subject of purchase and sale is a specific service—insurance protection—and where supply and demand for this service are formed. The development of the insurance market is determined by two main aspects. Firstly, this is due to the need of the population and business entities for insurance protection due to many risks. Secondly, the insurance fund as a whole has a monetary form, which makes it a full participant in the country’s monetary system and a method of interaction with other participants in the money market. Insurance companies are providers of financial services in Ukraine along with banks, investment, leasing, brokerage companies, credit unions, payment institutions and other participants in the financial system. The essence of insurance companies is revealed due to their functions. Among the functions of the insurance market, risk, financial, incentive, control, social, redistribution, investment and accumulation functions are identified. The main aspects characterizing the positive impact of the insurance market on the development of Ukraine are also noted and disclosed. Among the components through which insurance companies have a positive impact on the development of Ukraine are financial protection and stability, attracting investment, supporting entrepreneurship, social security, increasing financial literacy of the population, and promoting the development of international relations. The conducted research allows us to assert that the level of development of the insurance market reflects the possibilities of economic growth of Ukraine and is one of the main indicators of the developed financial system of the state.