INSURANCE COMPANIES’ INVESTMENT ACTIVITIES IN UKRAINE: THE CONDITION AND PROGNOSIS OF DEVELOPMENT

Abstract

The article considers the features and prospects of the development investment activity of insurance companies of Ukraine for 2009-2018 in the context of such investment instruments – bank deposits, real estate and securities. The main sources of investment for insurance companies that are represented by own funds and insurance reserves are analyzed. The specific features of investment activity of insurance companies, characteristic of life insurance companies and risk insurance companies, are distinguished. Domestic insurance companies do not invest in various innovative projects, as these investments are considered to be very risky. The providing a favorable investment climate remains a strategically important task on the realization of which the development of the national economy depends has been proved. The investment activity of domestic insurance companies does little to contribute to structural changes in the country’s economy and is not an engine of economic growth. The macroeconomic indicators and the share of the investment component of insurance companies in the total investments of the country and GDP are analyzed.
The prognosis trend models the volume of investment of Ukrainian insurance companies for 2020-2022 have been constructed. An effective prognosis based on trend models relates to the volume of investments made in bank deposits and real estate. The prognosis for further investment by insurance companies in the securities has been mixed and needs additional analysis of the factors influencing this investment instrument. We consider it expedient to perform mathematical calculations and analyze the years in which the highest jump in investment of insurance companies was observed, to analyze investment activity in this way, starting from 2013, or to apply the model using fourth-order polynomial trend. The main problems and contradictions of development of investment activity of insurance companies of Ukraine are identified. The directions and instruments of its activation in the conditions of low economic dynamics and geopolitical events in the world are substantiated.