Efficient use of the insurance sector potential adjusted for its shadowing: Case of Ukraine

  • Received November 21, 2020;
    Accepted January 25, 2021;
    Published February 11, 2021
  • Author(s)
  • DOI
    http://dx.doi.org/10.21511/ins.12(1).2021.02
  • Article Info
    Volume 12 2021, Issue #1, pp. 16-31
  • TO CITE АНОТАЦІЯ
  • Cited by
    3 articles
  • 193 Views
  • 34 Downloads

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License

The insurance sector plays a critical role in the economy, providing protection and security of the state and influencing its social and economic development. However, having a significant potential for development, the sector cannot fully realize it due to many problems, including its shadowing. Using the method of unprofitable enterprises analysis, which is applied by the Ministry for Development of Economy, Trade and Agriculture of Ukraine to determine the level of the shadow economy, considering the type of economic activity, the level of shadowing of the insurance services sector in Ukraine and its regions in 2013 and 2018 was calculated. The calculation results showed an increase in the shadow level of the insurance services sector both in Ukraine as a whole and in the separate regions. To evaluate the effectiveness of the insurance sector potential, given the calculated level of shadowing, a comprehensive assessment was carried out by standardizing the values of selected indicators characterizing the potential of the insurance sector in the context of Ukraine’s socio-economic development. The indicators of the efficient use of the insurance services sector potential in Ukrainian regions, calculated using an integrated assessment, showed an increase in the efficiency of using the potential of the insurance sector in three out of five analyzed regions. Zaporizhzhia region demonstrated the most significant growth. It has been proven that an increase in the volume of services provided is a key factor in increasing the social and economic efficiency of the insurance sector.

view full abstract hide full abstract
    • Figure 1. Development of the insurance services sector in Ukraine during 2013–2018
    • Figure 2. The share of insurance services in the total volume of provided commercial and financial services in 2018 (left scale) and its change in 2013–2018 (right scale)
    • Figure 3. The level of shadowing of the insurance services sector in Ukraine and its regions in 2013 and 2018, % of GVA of Financial and Insurance Activities
    • Figure 4. Employment indices in the economy, services and insurance services for 2013–2018
    • Table 1. Trends in the provision of insurance services in 2013–2018 in Ukraine and regions
    • Table 2. Statistical data and results of calculating the integrated index of the efficient use of the insurance services sector potential in ensuring the social and economic development of Ukraine’s regions in 2013 and 2018
    • Table 3. Change in indicators characterizing the potential of the insurance services sector in Ukraine and its regions in 2013–2018
    • Table 4. Analysis of tax revenues from insurance companies to the Consolidated Budget of Ukraine for 2013–2018 in Ukraine and its regions
    • Table A1. Initial data and results of calculating the level of shadowing of the insurance sector in Ukraine and its regions in 2013 and 2018
    • Conceptualization
      Mariana Melnyk
    • Investigation
      Mariana Melnyk, Olha Zhabynets, Ivanna Myshchyshyn
    • Methodology
      Mariana Melnyk, Ivanna Myshchyshyn
    • Project administration
      Mariana Melnyk, Ivanna Myshchyshyn
    • Supervision
      Mariana Melnyk
    • Validation
      Mariana Melnyk, Olha Zhabynets, Ivanna Myshchyshyn, Volodymyr Orlov
    • Visualization
      Mariana Melnyk, Olha Zhabynets, Ivanna Myshchyshyn, Volodymyr Orlov
    • Writing – review & editing
      Mariana Melnyk
    • Data curation
      Olha Zhabynets
    • Formal Analysis
      Olha Zhabynets, Volodymyr Orlov
    • Writing – original draft
      Olha Zhabynets, Volodymyr Orlov