DETERMINANTS FOR THE LIFE INSURANCE COMPANIES’ COMPETITIVE POTENTIAL DEVELOPMENT
Life insurance companies in Ukraine have significant development potential, which is limited by social, economic and political factors - instability, low level of social standards, lack of means for life insurance for potential clients. The competitive potential of an insurance company is defined as a set of opportunities for its development through the formation and implementation of competitive advantages of the company and its products. The features of life insurance (accumulation of funds under the contract, the specifics of the formation and placement of mathematical reserves, the possibility of direct investment of reserves, etc.) determine the order of formation and use of resources that are considered as determinants of the development of the competitive potential of the insurance company.
The processes taking place in the insurance market are the result of the impact on it of macroeconomic factors, which through the effect of which reduces the effectiveness of the operation of insurers, which affects their competitive potential. The insurer's competitive potential from the standpoint of its activity is:- one of the key indicators of the viability of the company in a competitive environment; its level determines the degree of adaptability to changing conditions in the insurance market and in the economy as a whole;- an indicator of the firm's firmness to stress, determining the margin of safety due to factors behind which it is provided.Insurance companies are faced with the need for a systematic assessment of their development potential in order to adapt to the changing conditions of operation in the market. Taking into account the above, it is relevant to study the totality of market factors affecting the competitive potential of an insurance company.Insurers need effective tools for analyzing the environment to assess and develop their competitive potential.The following market factors influence the assessment of the insurer's competitive potential: the distribution of the market between segments of life insurance and all but life; assortment of insurance services provided to consumers; distribution of the market between insurers - individuals and legal entities; Priorities regarding the demand for insurance services in property, personal and liability insurance; concentration of the market and, especially, in the segment of life insurance. The analysis of market factors was also carried out in the context of the source of the origin of the insurers' capital. The tendency to reduce the number of participants in the insurance market with simultaneous increase of companies with foreign capital is determined. The study made it possible to prioritize consumers' insurance interests, which points to the main subject of competition and the types of services in which rivalry is taking place.The identified factors should be taken into account when assessing the insurer's competitive potential, which allows justifying the distribution and size of resources to strengthen market positions and development of the company's activities.