Economic and Statistical Analysis of Development of Non-state Retirement Insurance System in Ukraine

Abstract

The analysis of the development of nonstate retirement insurance system for the period 2005-2012 is done in the article. Performed computations indicate a significant decrease in the development pace of the NSPF after 2008, which manifests both in absolute and relative indices. It is found that one of the important causes of development pace retardation is reduction of rate of return of NSPF. Close correlation between the net value of pension assets unit (NVU -index that reflects NSPF returns) and their size using an analytical grouping was proved. Correlation and regression analysis of the impact of selected factors on NVU of non-state pension funds (NSPF) of Ukraine was conducted. The author made a comparative analysis of quantitative and qualitative indices of NSPFs included in Top 10 and other market participants, which showed the superiority of NSPFs over all analyzed parameters. The main variation indices of investment activity of NSPF of Ukraine during 2008-2012 are determined. The main problems of further development of non-state retirement insurance system in Ukraine are outlined.

Conceptual Approaches to Improving the Functioning of Non-state Social Insurance Institutions in Ukraine

“…The size of the financial assets of non-state social insurance system does not reach 0.5% of all financial expenditures of the social protection system in Ukraine, which indicates insignificant role of this level in the social protection system (Malyovanyi & Melnyk, 2014). Development of the system of non-state social insurance is influenced by external factors (they do not depend on the activities of institutes of non-state social insurance, but can be minimized at the state level) and internal factors (directly related to the activities of institutes of non-state social insurance) factors.…”

Main problems of personal insurance and directions of their solution in the context of increasing the competitiveness of the insurance market

“…The global risks caused by the cyclical character of the development of the world's economic and financial systems, as well as the inability to predict the time [16] and scale of the next crisis [6]; 2. Macroeconomic and microeconomic risks [14] associated with the preservation of the tendency to reduce the growth rates of the national economy or individual industries; 3. Financial risks [11], which include unsatisfactory financial condition of a large part of insurers, low asset quality level [5], etc.…”

“…-Improvement of the methodology of formation of reserves for life insurance; -The introduction of tax incentives for insurers offering pension insurance programs and they should be in the same conditions as the state pension fund; -Introduce tax breaks for legal entities who enter into life insurance contracts for their employees [14]; -Establishing conditions that would allow insurers to offer attractive capital accumulation programs and would be accessible to the wider public [23]; -Increase of efficiency of work of state structures and their cooperation with insurance companies, and also creation of associations of insurers on the most important insurance problems; -Improvement of their legal, resource and organizational support; -Improving the activities of insurance companies themselves and improving the quality of services they provide based on a single system of criteria [4,9,22]; -Creation of an optimal structure of the relationship between compulsory and voluntary insurance; -Optimization of processes of protection of consumer rights, encouragement to purchase insurance services and formation of an insurance culture of the population [3].…”