The impact of macroeconomic factors on the development of the insurance system in Ukraine

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The functioning of the insurance system is associated with the dynamics of development and the current state of the economy, the political and social situation in a country, the legal field of operation of both insurance companies and economic agents. That is why the effective development of the insurance system is impossible without a deep understanding of the factors of the macroeconomic environment that can determine the scale of insurance activity. The aim of the study is to identify and determine the impact of macroeconomic factors on the development of the insurance system in Ukraine. To analyze the exogenous factors influencing the development of the insurance system, the study uses the method of PESTL analysis, as a result of which the strength of the influence of factors was assessed by insurance experts through a questionnaire. It is determined that political factors play an important role in the development of the insurance system. It is proved that economic factors influencing the insurance system have a direct impact, since the decline in production, rising inflation, which is reflected in the reduction of purchasing power of the population, leads to a reduction in insurance premiums to insurance companies. Social factors influencing the development of the insurance system manifest themselves through trust in insurers, which is the catalyst for the development of the insurance system. Technological factors influencing the development of the insurance system are represented by the level of development of innovations and technologies in insurance, the level of penetration of the Internet and mobile gadgets into the insurance system, the degree of globalization and openness of the insurance system. It is determined that legal factors are inhibitors of the development of the insurance system, as they do not create appropriate conditions for its improvement and development. It is concluded that economic factors have the greatest impact on the development of the insurance system and the functioning of its elements.

Acknowledgments
The authors with to thank V. S. Krupka, Certified consultant of IC “OVB Alfinance Ukraine”, ; V. O. Plyuta, Director of Khmelnytskyj Branch of IC “Providna”, Head of the Center for Reception and Customer Service in Khmelnytskyj, ; and V. V. Kulchytskyi-Polyvko, Deputy Director of the Center for Corporate Sales Development in the Western Region of IC “Unika”, .

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    • Figure 1. The volume of Ukraine’s GDP and the share of insurance penetration in GDP, 1991–2020
    • Figure 2. Gross insurance premiums and consumer price index in Ukraine in 1991–2020
    • Figure 3. The number of employed and unemployed population in Ukraine in 2010–2020
    • Figure 4. The number of employed population in the financial and insurance spheres in Ukraine in 2010–2019
    • Table 1. PESTL analysis indicators of the insurance system development in Ukraine
    • Conceptualization
      Tetiana Yavorska
    • Data curation
      Tetiana Yavorska, Lyudmyla Voytovych
    • Resources
      Tetiana Yavorska, Lyudmyla Voytovych
    • Visualization
      Tetiana Yavorska
    • Writing – review & editing
      Tetiana Yavorska, Lyudmyla Voytovych
    • Formal Analysis
      Lyudmyla Voytovych
    • Funding acquisition
      Lyudmyla Voytovych
    • Methodology
      Lyudmyla Voytovych
    • Writing – original draft
      Lyudmyla Voytovych
    • Project administration
      Dmytro Voytovych
    • Software
      Dmytro Voytovych
    • Validation
      Dmytro Voytovych