The insurance business in the region: economic substance and details.

Abstract

In the article the features of the insurance business in the region. In current market conditions insurance is an integral part of the national economy. In developed countries, it is a strategic sector of the economy, because it can reduce the load on the expenditure side of the budget designed to redress the occurrence of natural and man-made disasters, attracting investment into the economy, solving social problems. Worldwide experience has not developed a more efficient and rational mechanism to protect the interests of owners than insurance. That it is objectively necessary part of economic relations in the system. The main activity of the insurance company is providing insurance services, without the implementation of which cannot form and place insurance reserves and insome cases, make reinsurance. Commercial basis in the organization of insurance business lead to different results. It can be argued that the goal – making profit in the insurance business - a great incentive efficient conduct of insurance business. On the other hand, it is an objective factor that contributes to higher prices for insurance services for insurance companies. There are other forms of insurance, how to layout the loss of economic entities, citizens, activities and nature of employment which is related to the possible influence of identical nature and consequences of insurance risks that carry non-profit activities. One of these organizational forms is a mutual insurance association.