The insurance market in Ukraine

A. DialogueS

Iii. ORAL Practice

1. Read the dialogue and sum up the content:

Foreigner: Insurance technology is a means chosen for funding of losses, incurred by individuals and companies as a result of various adverse conditions. This type of financial-economic activity is extremely important for provision of endless economic life of a society.

Ukrainian: I am in full agreement with you. In addition, it helps individuals to deal with consequences of adverse events. Insurance companies are a kind of regulators of society's attitude to risks.

Foreigner: As for as I know last year were the years of substantial progress for Ukraine’s insurance market, weren’t they?

Ukrainian: Yes, prior to 1998, the State Insurance held a monopoly position on the insurance market in Ukraine. But in 1990 first insurance companies appeared.

Foreigner: It is necessary to remained, in early 1990s inflation rate was very high. It caused a shrinkage of the volume of property insurance and insurance against financial risks. Many companies actually switched over to trust and banking activities.

Ukrainian: That’s right. And it is remarkable, the share оf personal insurance exceeded the shares of all other kind of insurance. Combined life insurancewas put into practice, that is, one and the same policy covered life assurance, and accident insurance. These tendencies lasted until mid-1995, when the level of inflation decreased significantly.

Foreigner: I suppose, due to raise and development of normal market relations, liability insurance and property insurance began to develop at a higher rate after mid-1995, didn’t they?

Ukrainian: Yes, that’s true. The market for motor vehicle passenger insurance also began to develop. Medical insurance and long-term life insurance take a more regular charter.

It should be noted, at the same time because of objective and subjective reasons, insurance companies have not become true guarantors of business entities’ interests and social protections of the public as of yet.

Foreigner: I see. But my experience in Ukraine tells me that there are some promising trends in Ukraine's insurance market. Thus, insurance organizations began to pay cover and premiums more appropriately. The personnel of these organizations became gained some practical experience.

Ukrainian: I would say in this connection that conditions and rules of insurance became closer to European standards. Due to adoption of the Law of Ukraine On Insurance, insurance organizations with significant authorized capital were established cooperation with foreign counterparts is now of more equitable character.

Foreigner: Well, in this connection, what about the main tasks of Ukraine’s insurance market?

Ukrainian: In answer to your question I would like to say that it is very important to attract foreign investment, put into practice specialized accounting for operations dealing with insurance activity, large-scale involvement of insurer's funds in the development of the national economy.

Foreigner: I think that a trend towards stabilization of the growth rate of insurance services is increasing and the share of foreign capital invested in insurance business began to grow. Thus Ukraine’s insurance market has good perspectives.

Ukrainian: Yes, it certainly has. I would like to emphasize that insurance is intrinsic to the market economy. As suggested by world experience, it is very helpful in attacking challenges of social development. Without insurance, entrepreneurs cannot be sure that they would not loss in contingency their capitals invested in economic activity. Insurance allows to save financial resources of business entities and accumulatesignificantfunds for further investing in the economy.

Дата добавления: 2014-12-23