The Key Indicators of Efficiency of Functioning of Insurance Market for the State
The Key Performance Indicators (KPIs) determine the effectiveness of market participants. The use of the KPIs has so far not been used for analysis of the Ukrainian insurance market. The urgent problem is to determine how the efficiency of the insurance market should be assessed from the State’s poi...
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Research Centre of Industrial Problems of Development of NAS of Ukraine
2019-08-01
|
| Series: | Bìznes Inform |
| Subjects: | |
| Online Access: | http://www.business-inform.net/export_pdf/business-inform-2019-8_0-pages-158_164.pdf |
| _version_ | 1819090016909918208 |
|---|---|
| author | Shirinyan Lada V. Shirinian Artur A. |
| author_facet | Shirinyan Lada V. Shirinian Artur A. |
| author_sort | Shirinyan Lada V. |
| collection | DOAJ |
| description | The Key Performance Indicators (KPIs) determine the effectiveness of market participants. The use of the KPIs has so far not been used for analysis of the Ukrainian insurance market. The urgent problem is to determine how the efficiency of the insurance market should be assessed from the State’s point of view. The presented work is a continuation of a series of works devoted to the development of the KPIs for participants of the Ukrainian insurance market. The aim of the article is to develop a system of key indicators of efficiency of functioning of the Ukrainian insurance market for authorized government bodies based on macro- and micro-economic indicators, which would provide a comprehensive description of the results achieved by participants of insurance system under the influence of government administration and regulation. The amount of the KPIs is optimally limited to avoid secondary indicators that have small impact on performance and to data accessibility for the KPI calculation using data from insurance companies and a State authorized body. The paper for the first time develops and classifies the KPIs of functioning of the Ukrainian insurance market for the State, including: percentage of insured population, percentage of insured business; level of insurance indemnity; solvency margin of insurers; margin of monopolization; margin of competition; share of insurance in the formation of the country’s GDP; efficiency of insurance activity; volume of tax payments to the State budget. Each KPI has a mathematical formulation and a condition for ensuring efficiency. In 2017–2018, conditions for ensuring efficiency of Ukrainian insurance market were implemented only for a few KPIs: the percentage of insured business; the solvency margin of insurers; the margin of monopolization and competition for the non-life insurance market; and the efficiency of insurance activity. Calculations for other KPIs showed the inefficiency of actions of the authorized government bodies. |
| first_indexed | 2024-12-21T22:17:08Z |
| format | Article |
| id | doaj.art-38f116e9ea48464794a020345d8ea2e2 |
| institution | Directory Open Access Journal |
| issn | 2222-4459 2311-116X |
| language | English |
| last_indexed | 2024-12-21T22:17:08Z |
| publishDate | 2019-08-01 |
| publisher | Research Centre of Industrial Problems of Development of NAS of Ukraine |
| record_format | Article |
| series | Bìznes Inform |
| spelling | doaj.art-38f116e9ea48464794a020345d8ea2e22022-12-21T18:48:25ZengResearch Centre of Industrial Problems of Development of NAS of UkraineBìznes Inform2222-44592311-116X2019-08-01849915816410.32983/2222-4459-2019-8-158-164The Key Indicators of Efficiency of Functioning of Insurance Market for the StateShirinyan Lada V. 0Shirinian Artur A. 1Educational and Scientific Institute of Economics and Management of the National University of Food TechnologiesKyiv National Economic University named after V. HetmanThe Key Performance Indicators (KPIs) determine the effectiveness of market participants. The use of the KPIs has so far not been used for analysis of the Ukrainian insurance market. The urgent problem is to determine how the efficiency of the insurance market should be assessed from the State’s point of view. The presented work is a continuation of a series of works devoted to the development of the KPIs for participants of the Ukrainian insurance market. The aim of the article is to develop a system of key indicators of efficiency of functioning of the Ukrainian insurance market for authorized government bodies based on macro- and micro-economic indicators, which would provide a comprehensive description of the results achieved by participants of insurance system under the influence of government administration and regulation. The amount of the KPIs is optimally limited to avoid secondary indicators that have small impact on performance and to data accessibility for the KPI calculation using data from insurance companies and a State authorized body. The paper for the first time develops and classifies the KPIs of functioning of the Ukrainian insurance market for the State, including: percentage of insured population, percentage of insured business; level of insurance indemnity; solvency margin of insurers; margin of monopolization; margin of competition; share of insurance in the formation of the country’s GDP; efficiency of insurance activity; volume of tax payments to the State budget. Each KPI has a mathematical formulation and a condition for ensuring efficiency. In 2017–2018, conditions for ensuring efficiency of Ukrainian insurance market were implemented only for a few KPIs: the percentage of insured business; the solvency margin of insurers; the margin of monopolization and competition for the non-life insurance market; and the efficiency of insurance activity. Calculations for other KPIs showed the inefficiency of actions of the authorized government bodies.http://www.business-inform.net/export_pdf/business-inform-2019-8_0-pages-158_164.pdfkey performance indicatorsinsurance marketauthorized government bodiesmanagementregulation |
| spellingShingle | Shirinyan Lada V. Shirinian Artur A. The Key Indicators of Efficiency of Functioning of Insurance Market for the State Bìznes Inform key performance indicators insurance market authorized government bodies management regulation |
| title | The Key Indicators of Efficiency of Functioning of Insurance Market for the State |
| title_full | The Key Indicators of Efficiency of Functioning of Insurance Market for the State |
| title_fullStr | The Key Indicators of Efficiency of Functioning of Insurance Market for the State |
| title_full_unstemmed | The Key Indicators of Efficiency of Functioning of Insurance Market for the State |
| title_short | The Key Indicators of Efficiency of Functioning of Insurance Market for the State |
| title_sort | key indicators of efficiency of functioning of insurance market for the state |
| topic | key performance indicators insurance market authorized government bodies management regulation |
| url | http://www.business-inform.net/export_pdf/business-inform-2019-8_0-pages-158_164.pdf |
| work_keys_str_mv | AT shirinyanladav thekeyindicatorsofefficiencyoffunctioningofinsurancemarketforthestate AT shirinianartura thekeyindicatorsofefficiencyoffunctioningofinsurancemarketforthestate AT shirinyanladav keyindicatorsofefficiencyoffunctioningofinsurancemarketforthestate AT shirinianartura keyindicatorsofefficiencyoffunctioningofinsurancemarketforthestate |