The role of insurance in one way or another manifests itself at each stage of the implementation of insurance protection.
The activities of insurance organizations at the stage of risk identification are primarily associated with the need to determine the types of insurance that they can carry out, as well as the development of conditions for each of these types. Such work requires studying the risks that threaten the potential clients of the insurer and identifying those objects that may be endangered if these risks materialize. Such activities can be called risk identification at the macro level, i.e. on the scale of the entire territory in which insurance is supposed to be carried out.
When concluding separate insurance contracts, insurance organizations and intermediaries are already forced to study the risks from which a specific potential client may suffer. With this in mind, each of them is invited to conclude insurance contracts that are relevant specifically for them on appropriate terms. Such activity can already be called risk identification at the micro level, i.e. in the scale of life and activities of an individual, family or organization.
When calculating the rates of payable premiums, insurance companies and other persons involved in this carry out a risk assessment, since these calculations are related to determining both the probability of occurrence of events in the event of which insurance is carried out, and the amount of possible losses from the manifestation of these events. At the same time, as well as at the stage of identifying risks, their assessment is carried out both at the macro level (when calculating the rates in general for the type of insurance) and at the micro level (when specific rates are determined under the insurance contract).
In some cases, such activities of insurance organizations in itself can bring great benefits to customers, regardless of whether the insurance contract is concluded and payments are made in the future. For example, as a result of a medical examination before concluding insurance contracts, you can find out about your state of health, checking the creditworthiness of counterparties before concluding credit insurance contracts can help identify unreliable partners, studying the legal purity of real estate before concluding title insurance contracts can protect against the acquisition of a dubious object, etc. .P.
The role of insurance in risk control very diverse.
When concluding insurance contracts, insurance organizations may put forward requirements aimed at reducing the level of risk in relation to those objects that are supposed to be insured. At the same time, the fulfillment of such requirements can either be a condition for concluding a contract in general, or at least make it possible to conclude a contract on more favorable terms (for a smaller amount of contributions, with a wider range of obligations of an insurance company, for higher amounts, etc.) . Thus, citizens and organizations are forced to take measures aimed at reducing the level of risk.
The above role of insurance can be especially pronounced when, for any reason (regulations, contract requirements, conditions for participation in competitions and tenders, the need to improve one's reputation, etc.), a person needs to have an insurance contract. In these cases, insurance organizations can perform the functions of a kind of controller of the state of affairs of their potential customers, checking their activities before concluding an insurance contract. The consent of the insurance organization to conclude an insurance contract after such a check may be for partners or regulatory authorities a certain evidence that this person is trustworthy. Such relationships are based on the fact that an insurance organization can afford to conclude an insurance contract only when it is sure that the level of insurance risk under the contract does not exceed a certain limit, and this, in turn, is a guarantee of the quality of the verification of the activities of a potential client that it conducts. . A typical example here is the practice of banking risk insurance: on the one hand, such insurance contracts are concluded only after a thorough check of the bank’s work, and on the other hand, the bank’s insurance is one of the conditions for the bank to receive an appropriate rating, as well as a certain evidence of its reliability.
Control over risks during the validity period of insurance contracts is expressed primarily in the fact that its terms may provide for the obligation of the person whose risks are insured to comply with generally accepted norms and rules designed to reduce the likelihood of an insured event and the amount of losses from it. Typically, in insurance practice, this requirement means that the person must act as he would have acted if the insurance contract had not been concluded (for example, when insuring property, this requirement may be expressed in the need to comply with safety requirements, fire safety, rules for storing property and so on.).
Insurance organizations, in turn, can control whether the level of risk has increased under the concluded contract. This control can be carried out by presenting requirements to report on circumstances that increase the level of insured risk; by introducing into the terms of contracts the right of the insurance organization to check the condition of the insured objects itself and in other ways.
Finally, certain rights of the insurance organization provided for, as a rule, by the terms of contracts, in the event of an increase in the level of risk, contribute to the stimulation of appropriate actions of insurance participants related to risk control. Such rights, in particular, can be: a requirement from insurance participants to eliminate identified shortcomings that contribute to an increase in the level of risk; changing the conditions of insurance contracts and the amount of contributions; termination of the insurance contract, denial of payments in appropriate cases, etc.
The role of insurance in carrying out measures aimed at reducing losses from already occurring adverse events is manifested primarily in forcing insurance participants to take such measures. Specifically, this is implemented as follows:
a) by establishing the obligation to take measures aimed at reducing the amount of losses;
b) granting the insurance company the right to give instructions to insurance participants on how they should implement retaliatory measures;
c) the release of the insurance company from the obligation to compensate for losses incurred as a result of the deliberate failure to take such measures that could well have been taken to reduce the amount of losses.
In some cases, the insurance organizations themselves are directly involved in the work to reduce the amount of losses. Examples include the evacuation of damaged vehicles by insurance organizations, their participation in the rescue of insured goods, the activities of service departments in the insurance of persons traveling abroad, etc.
At the same time, insurance participants are encouraged to implement measures to reduce losses. This is achieved, in particular, by reimbursement to them of the costs that they incurred in the implementation of the above actions. In addition, there are special types of insurance that provide only compensation for the costs caused by their desire to minimize losses in the event of an adverse event. An example is the insurance of additional costs associated with damage to electronic equipment, the terms of which provide for compensation for the cost of renting electronic equipment in the event of failure of the insured.
However, the main role of insurance is manifested at the stage of liquidation of the consequences of adverse events. It is for the implementation of insurance protection at this stage that insurance is carried out, while its role at the previous stages of insurance protection is additional, caused by the need to most effectively fulfill the main task - to help insurance participants after the onset of an adverse event. Such assistance can be provided in several ways.
The first and most important of them is the payment of sums of money for the consequences of an unfavorable event. Thus, insurance is one of the most important sources of financing risks at the stage of eliminating the consequences of random unforeseen events. At the same time, payments by insurance organizations for the consequences of the most devastating disasters reach huge sums. For example, the liabilities of insurance organizations for the consequences of the World Trade Center explosions in New York on September 11, 2001 amounted to about $40 billion, for the consequences of hurricanes in the United States in 2005 - more than $60 billion.
The compensation received by enterprises and organizations, compensating for their losses, allows them to restore lost and damaged property, overcome financial difficulties, which enables them to continue their functioning and development, and ultimately contributes to the economic growth of the country as a whole.
Insurance is also widely used to solve social problems of society. Thus, insurance organizations make payments for lost or damaged property of citizens, when they become disabled as a result of accidents, diseases, old age, in cases of death of loved ones, they finance the treatment and rehabilitation of victims. All this contributes to the preservation of the level of material prosperity achieved by the population. Thus, insurance contributes to the stabilization of the standard of living of citizens, while at the same time reducing part of the financial burden on the state associated with the implementation of social payments.
The role of insurance is especially significant when compensating for large losses. It is, as a rule, unrealistic and inefficient to use the current cash flow and other non-specialized sources, as well as decentralized insurance funds, to eliminate such losses. You can count on receiving funds from state insurance funds only in a limited number of cases. All this creates the prerequisites for the widespread use of insurance. It is precisely when it is unrealistic or at least difficult for the affected subject to get out of the situation alone, since the amount of damage is too great, and he cannot count on the help of the state, he has no other choice but to resort to the collective method of mutual assistance, which is insurance. This method is just so good that it allows you to accumulate funds in such large volumes that they are enough to eliminate the largest losses.
It is important to emphasize that the provision of assistance through the mechanism of insurance often occurs at the most critical moment in the life or activity of a person who has suffered losses, when the problem of the need for funds is especially acute.
In this regard, we note that often, in order to find out whether insurance turned out to be really profitable, they resort to simple arithmetic calculations, adding up the amount of contributions paid during participation in it and the amount of payments received during this period. If the first amount is greater than the second, then it is concluded that part of the money was spent in vain. This, however, does not take into account the fact that the payment was quite possibly made when the injured person needed it more than ever, because in its absence it could be in a hopeless situation, for example, if it was necessary to pay for treatment, the absence of which threatened would life, or pay off creditors under the threat of declaring bankrupt.
In a number of cases, insurance organizations, instead of paying cash, provide assistance “in kind”. This is expressed, for example, in organizing the provision of medical care, repairing insured vehicles and other damaged property, etc.
The third line of activity of insurance organizations in the event of adverse events is the provision of additional assistance. Examples of the provision of such assistance are the legal protection of clients, the provision of property to the injured person during the repair of damaged property, the payment of bail amounts to release property from arrest, etc.
Insurance can also increase the efficiency of financial planning, make it easier to calculate your future expenses associated with the need to compensate for losses resulting from the impact of unforeseen events. Such events tend to occur suddenly; more often than not, it is impossible to foresee the extent of the losses they may inflict. Therefore, it is very problematic to plan in advance in the financial plans and cost estimates of enterprises and organizations the amounts due to the possibility of their occurrence. At the same time, when using insurance, the company's expenses associated with the onset of insured risks are mainly limited to the payment of premiums, the amount of which is known in advance, and therefore it is not difficult to take them into account in financial planning for the future period. The same applies to those individuals who consider it necessary to plan their family budgets. Thus, the conclusion of insurance contracts can be considered as one of the elements of financial planning.
Insurance can also be considered as one of the ways to reduce psychological stress. Indeed, if a person is confident that the financial consequences of the occurrence of any unforeseen events will be reimbursed by the insurance company, he has less reason to worry that such events will happen to him. Thus, making contributions for an insurance contract can be considered to a certain extent as a payment for providing moral comfort. The fulfillment of this role by insurance is one of the reasons for the high level of demand for it that takes place in the most developed countries, where the opportunity to live calmly, without shocks, is itself perceived as one of the values ​​worth paying money for.
Significant opportunities are available for insurance in solving the problem associated with the mobilization of savings for the development of the national economy. Unlike commercial banks, which specialize in raising funds for a short period, insurance organizations (primarily those engaged in life insurance operations) have funds received in the form of contributions for a long time (10 years or more). Therefore, in economically developed countries, insurance companies are among the largest investors. Stable cash inflow, long-term liabilities make insurance organizations an ideal source of "long money" for business and government. Thus, the invested assets of the insurance companies of the most developed countries of the world in 2001 exceeded 7.5 trillion dollars. At the same time, a significant part of the investments is directed to the expansion of production. By acquiring government securities, insurance organizations participate in the costs of developing infrastructure, covering the budget deficit, and so on.
In addition, the role of insurance in the investment process is also manifested in the fact that among the types of insurance there are those that are directly related to the insurance protection of investors from possible losses. This insurance allows investors to receive guarantees for the safety of their investments and thereby contributes to an increase in investment volumes.

"Legal regulation of insurance Plan Necessity, economic essence and role of insurance in modern conditions Contents ..."

Legal regulation of insurance

Necessity, economic essence and role of insurance in modern conditions

Basic concepts and terms of insurance

Insurance risks. risk management

Classification in insurance

Forms of insurance

Insurance legislation. The concept of an insurance contract

1. Necessity, economic essence and role of insurance in modern conditions

insurance fund contract risk

In the modern sense, insurance is an economic relationship for the formation and use of an insurance fund intended to compensate for damage caused by various kinds of adverse events. In any society, disasters are possible that entail material damage or other damage (loss of health, disability, life) inflicted on legal entities and individuals. At the same time, disasters are divided into two large groups: 1) natural (mainly natural); 2) social production (technical incidents, i.e. accidents, accidents, etc.).

Insurance is one of the varieties of human foresight aimed at maintaining material well-being in the event of random and unpredictable events.

Insurance is a necessary element of industrial relations, expressing the redistribution of funds regarding compensation for damage. The economic essence of insurance is to ensure the continuity and uninterrupted production process. Insurance is a protection mechanism against various kinds of risks that require significant funds, which the victims may not have.

Insurance is characterized by:

a) the random (probable) nature of the onset of emergency events;

b) unbearable damage to an individual citizen or legal entity;

c) creation of isolation, solidarity relations between the participants regarding compensation for damage at the expense of the insurance fund;

d) redistribution of damage both in space and in time;

e) the return of funds mobilized in the insurance fund.

The essence of insurance as an economic category is expressed in the functions it performs. Insurance has the following functions:

1. Risky. Risk as the probability of damage is directly related to the purpose of insurance. Within the framework of this function, the monetary form of value is redistributed.

Warning. A part of the insurance fund finances measures to reduce insurance risk.

Cumulative (savings). Characteristic mainly for life insurance.

Control. It offers a strictly targeted approach to the formation and use of the insurance fund. It is based on relevant legislative documents and methodological materials.

The objective existence of risky situations gives rise to insurance economic relations to prevent and overcome the destructive consequences of emergency events, as well as to compensate for damage. The totality of these relations determines the economic category of insurance coverage. Its essence lies in the presence of insurance risk and the need for protective measures, which are materially embodied in the insurance fund.

Insurance is based on the idea of ​​creating, even before the onset of emergency events, a special fund called insurance, through which it will be possible to compensate for damage. Therefore, in any society, a fund is needed to compensate for losses resulting from natural disasters and other adverse events. This is the main economic purpose of the insurance fund. In practice, the forms of formation and use of insurance funds are also different. There are usually three:

National reserve funds. These are centralized funds, created in monetary and material form. The main source is the state budget. They are at the disposal of the Council of Ministers of the Republic of Belarus and lower authorities. Designed to provide the country with the necessary resources in the event of emergency and large-scale adverse events.

Self-insurance funds. Decentralized funds are created by business entities in order to ensure the continuity of production, which is subject to various risks. They have monetary and natural-material forms. The procedure for use is provided for by the Charter of an economic entity. These funds play an important role, but they also have disadvantages: they divert significant funds from circulation; cannot be created in such a volume as to fully compensate for the damage, etc.

insurance funds. These funds are created by special insurance organizations at the expense of contributions from legal entities and individuals. Relationships arise within a strictly defined circle of insurance participants. The advantage of this form of organization of the fund is that the damage of one insurance participant is distributed to all participants in the creation of the insurance fund. Since the number of recipients of funds from this fund is always much less than the number of payers of insurance premiums, this makes it possible to concentrate significant amounts in the fund that guarantee real compensation for damage within the framework of the law.

3. Basic concepts and terms of insurance

In insurance, a significant number of specific terms are used. The main ones are the following:

An insurer is a specialized organization in charge of the creation and expenditure of an insurance fund, that is, it is an insurance company.

Policyholder - a natural or legal person who pays insurance premiums and enters into specific insurance relations with the insurer. In international insurance, the insured is called the policy holder.

Insurance field - the maximum number of objects that can be insured.

Insurance portfolio - the actual number of insured objects or concluded insurance contracts.

Insurance premium (premium) - payment of the insured to the insurer.

Sum insured - the amount of money for which the object is insured, i.e. the amount within which the insurer is obliged to indemnify for damage upon the occurrence of an insured event.

Insured event - the occurrence of an event in which the obligation of the insurer to pay insurance compensation to the insured arises.

Insurance indemnity - the amount paid to the insured by the insurer upon the occurrence of an insured event.

An insurance policy is a document certifying the conclusion of an insurance contract.

Insurance coverage - payment under a personal insurance contract in connection with its termination.

Term of insurance - the time interval during which the objects of insurance are insured. It can vary from a few days to a significant number of years (15-25). In addition, an indefinite period of insurance is possible, which is valid until one of the parties to the legal relationship (the insured or the insurer) refuses to continue its further continuation, having notified the other party of its intention in advance.

Insurance appraisal - the value of property, determined for the purposes of insurance. It is characterized by a system of monetary meters of the insurance object, closely linked to the probability of an insured event. The actual value of the property or some other criterion (declared value, initial cost, etc.) can be used as an insurance assessment. In international practice, the term insurance value is used instead of the term "insurance assessment".

Depending on the system of insurance relations implemented in the process

insurance, in addition to insurance as such, there are also co-insurance, double insurance, reinsurance, self-insurance.

Co-insurance is insurance in which two or more insurers participate in certain shares in the insurance of one object. Insurance pools (associations of insurers for joint insurance of large and most dangerous risks) are created and operate on the principle of co-insurance. The need for co-insurance is determined by the fact that the volume of insurance liability for large objects and projects may exceed the capabilities of a particular insurer.

Double insurance is insurance with several insurers of the same interest against the same dangers, when the total insured amount exceeds the insured value. Double insurance can be used for enrichment purposes. Therefore, in the legislation of a number of countries it is given great attention.

Reinsurance is insurance by one insurer (reinsurer) on the conditions specified in the contract of the risk of fulfillment of all or part of its obligations to the insured by another insurer (reinsurer). The purpose of reinsurance is the secondary distribution and leveling of risk within the insurance portfolio of the insurer. This increases the financial stability of the insurer.

4. Insurance risks. risk management

In insurance, risk is understood as the danger of an unfavorable outcome of any event, phenomenon, process. Risk is a reflection of the potential threat of damage. It is the feeling of risk and the existence of a connection between risk and damage that make people insure against the onset of an unfavorable set of circumstances that bring real losses.

Risk is a random event that occurs against the will of a person. Assessment (measurement) of risk is performed using the probable gay theory. In insurance relations, the risk exists throughout the duration of the insurance contract. It is realized through random events or phenomena about which an insurance relationship arises. The forms and frequency of pro: risk are diverse, and the severity of the consequences of the manifestation of risk is different, the value is not constant. Its changes are largely due to changes in the economy, as well as a number of other factors. Therefore, the insurer must constantly monitor the dynamics of risk, keep statistical records, analyze and process the information collected.

Risk classification is based on criteria such as:

causes (kind of danger) that cause adverse events. Here, man-made, natural and mixed risks are distinguished;

the nature of the activity with which they are associated (entrepreneurial, financial and credit, professional, transport, industrial and other risks);

the nature of objects that are at risk (risks of harm to the life and health of citizens and property risks, among which the risks of civil liability are highlighted).

The classification of risks serves as the basis for the classification of types of insurance.

Risk management is a multi-stage process that aims to reduce or compensate for damage to an object in the event of adverse events. All methods of influencing risk can be divided into three groups - risk reduction, preservation and risk transfer.

Reducing risk means reducing either the amount of possible damage or the likelihood of adverse events occurring. This is achieved by the implementation of preventive organizational and technical measures.

Saving risk - this method of risk management is called self-insurance.

Risk transfer - means the transfer of responsibility for it while maintaining the existing level of risk. These measures include insurance, as well as various kinds of financial guarantees, guarantees, etc.

Many managers traditionally associate risk management primarily with insurance. Indeed, insurance was originally the world's most widespread method of influencing risk and currently remains so. In the largest developed countries (USA, Japan, Germany), annual payments of insurance premiums reach 7-9% of the gross domestic product. Almost all branches of human activity are covered by insurance.

5. Classification in insurance

The classification of insurance is based on two criteria: differences in the objects of insurance and differences in the amount of insurance liability. In this regard, there are two classifications:

By objects of insurance (general).

By type of danger (partial), covering only property insurance.

Partial classification according to the type of danger provides for the allocation of the following links and only in property insurance:

insurance against fire and other natural disasters;

crop insurance against drought and other natural disasters;

insurance against death or forced slaughter of animals;

from theft, accidents, theft (of vehicles).

The general classification provides for the division of insurance into industries, sub-sectors and types.

To specify insurance relations, sub-sectors are distinguished. Each of the sub-sectors has a significant number of types of insurance.

The type of insurance is the last link in the classification and represents the insurance of homogeneous objects against insurance risks characteristic of them. Each type of insurance usually requires the development of special rules for conducting insurance operations and the calculation of the corresponding system of insurance rates. Currently, the number of types of insurance is calculated in many dozens and is constantly increasing. For example, home contents insurance, animal insurance, insurance of buildings owned by citizens, etc.

In table. 1 presents a general classification of insurance, reflecting the division of insurance relations into interconnected links that are hierarchically subordinate to each other.

Classification of insurance by industries, sub-sectors and types of insurance

Industry Personal insurance Non-life insurance Liability insurance

Sub-sector Life insurance Accident insurance Corporate property insurance Individual property insurance Debt insurance Indemnity insurance (civil liability insurance)

Type Life insurance.

Children's insurance.

Supplementary pension insurance.

Voluntary medical insurance, etc. Insurance of vehicles (land, air and water transport).

Cargo insurance, insurance of other types of property.

Insurance of financial risks, etc. Civil liability insurance of vehicle owners.

Carrier civil liability insurance.

Insurance of civil liability of enterprises - sources of increased danger.

Professional liability insurance, default liability insurance, etc.

Personal insurance is a branch of insurance where the objects of insurance are the property interests of citizens related to life, health, ability to work, and pensions. Under a personal insurance contract, the insurer undertakes, upon the occurrence of an insured event, to pay the insured a lump sum or to pay the sum insured periodically stipulated by the contract. Personal insurance includes: life insurance; accident insurance.

Property insurance has as its object the property interests of the insured person related to the possession, use and disposal of this property. Property insurance is based on the principle of compensation for damage within the limits of the sum insured under the contract. Property insurance includes the following sub-sectors: insurance of property of legal entities, insurance of property of individuals.

Liability insurance is a branch of insurance where the object is liability to third parties (individuals and legal entities) who may suffer damage (harm) as a result of any action or inaction of the insured. Through liability insurance, the insurance protection of the economic interests of possible inflictors of harm is realized. These interests in each insured event have their specific monetary expression. In liability insurance, there are: debt insurance, insurance in case of compensation for harm, which is also called civil liability insurance.

Peculiarities of carrying out life insurance operations necessitate additional classification of insurance services. In this regard, according to the methods of calculating insurance rates and the formation of insurance reserves, all types of insurance are divided into life insurance and insurance other than life insurance.

6. Forms of insurance

Insurance can be carried out in two forms:

1) mandatory;

2) voluntary.

Insurance is mandatory if it is provided for by the legislative acts of the Republic of Belarus, which define the types, conditions and procedure for providing insurance services.

The initiator of compulsory insurance is the state, which, in the form of a law, obliges legal entities and individuals to contribute funds to ensure public interests. The state establishes a mandatory form of insurance, when the insurance protection of certain objects is connected with the interests not only of individual insurers, but of the whole society. Compulsory insurance is carried out on the basis of relevant legislative acts, which provide for:

list of objects subject to insurance;

the amount of insurance liability;

level (norms) of insurance coverage;

basic rights and obligations of the parties involved in insurance;

The procedure for establishing insurance tariffs, insurance premiums and some other issues.

The law defines the range of insurance organizations that are entrusted with the implementation of compulsory insurance. Carrying out compulsory insurance is assigned, as a rule, to the state insurance organization. With compulsory insurance, the completeness of the objects of insurance is achieved. On the other hand, the mandatory form of insurance excludes the escheat of individual insurance objects, which is inherent in the voluntary form. Due to the maximum coverage of insurance objects with a mandatory form of its implementation, it is possible to apply minimum insurance rates and achieve high financial stability of insurance operations.

A variety of compulsory insurance is compulsory state insurance, the features of which are as follows:

It can be carried out in relation to the life, health and property of public servants;

The source of payment of the insurance premium for such insurance is the state budget;

The insurers are executive authorities;

Operations on such insurance can be carried out in two ways: either directly on the basis of laws or other legal acts on such insurance by the state insurance or other state organizations specified in them, or by concluding insurance contracts between insurers and policyholders in accordance with legal acts regulating the procedure for conducting mandatory state insurance.

Among the types of compulsory state insurance currently being carried out in the Republic of Belarus, one can name compulsory state personal insurance for military personnel and those liable for military service, employees of tax authorities, the Ministry of Emergency Situations, veterinarians, etc.

The compulsory form of insurance is based on the following principles.

1. The principle of obligation (automaticity). It is manifested in the fact that insurance is mandatory by law. The relevant regulations define the list of objects to be insured, the list of events for which insurance is carried out, the amount of insurance premiums and the frequency of their payment, the amount of compensation paid, the rights and obligations of the insured and the insurer.

The principle of completeness of compulsory insurance coverage. The essence of this principle is that the insurers, who are required by law to provide compulsory insurance, must ensure 100% coverage of the relevant objects.

The principle of mandatory insurance protection of independence from the payment of insurance premiums. If the policyholder has not paid the insurance premiums, and damage has been caused to his respective property interests, the insurer shall pay compensation to him, withholding the insurance premiums. In some cases, contributions can be collected through the courts.

Perpetuity of compulsory insurance. It is manifested in the fact that insurance protection will be carried out by the insurer until the insured has a property interest subject to compulsory insurance, or until the relevant law is repealed.

The principle of normalizing the liability of insurers. It allows not to take into account the individual characteristics of the objects of insurance and, by setting appropriate standards, to simplify the organization of the insurance process.

A voluntary form of insurance is carried out on the basis of a mutual agreement of the parties, i.e. conditions are determined by the insurance contract. Often, when concluding such an agreement between the parties, an intermediary is involved in the form of an insurance broker or insurance agent. The insurance contract is certified by the insurance policy. The regulatory framework for organizing and conducting voluntary insurance is created by insurance legislation. Based on the legislative framework, conditions or rules for certain types of voluntary insurance are formed. These rules and conditions developed by the insurer are subject to mandatory licensing by the state insurance supervision body.

Voluntary form, insurance is based on the following principles.

The principle of voluntariness. It manifests itself in the fact that the insured enters into an insurance contract of his own free will, and not due to legislative coercion. At the same time, he insures only what he considers necessary, and as much as his financial capabilities allow.

The principle of incomplete coverage of individuals and legal entities by voluntary insurance. Due to the fact that not everyone wants to insure and have the means to do so. In turn, insurers set certain restrictions when accepting various objects for insurance.

The principle of limited duration of insurance. Voluntary insurance has, as a rule, a predetermined period of insurance. The beginning and end of the insurance period are indicated in the contract with particular precision, since the insurer bears insurance liability only during the insurance period. The insurance contract must be concluded in writing. For voluntary insurance, it is possible to ensure the continuity of insurance with the timely renewal of the contract for a new term.

4. The principle of dependence of insurance protection on the payment of an insurance premium. Voluntary insurance comes into force only after payment of the insurance premium (insurance premium). Moreover, a long-term voluntary insurance contract is valid if the contributions are paid by the insured periodically (monthly, quarterly) or at a time (once a year).

Contracts of voluntary property insurance, personal insurance and liability insurance are part of civil legal relations and are included in the number of reimbursable contractual obligations. Under such an agreement, one party is obliged to pay the other party a specified amount of contributions. In turn, the other party is ready to provide the insurance service specified in the contract. Under the insurance contract, the service consists in the payment of insurance compensation or the sum insured for the consequences of insured events that have occurred.

The ratios between the applied forms changed. Starting from 1998, some types of insurance are being transferred to a mandatory form, which allows realizing a wide range of insurance risks, automaticity, perpetuity and complete coverage of objects, and applying lower tariffs.

7. Insurance legislation. The concept of an insurance contract

In the field of civil law, the rules on insurance are contained in legislative acts, resolutions of the Council of Ministers of the Republic of Belarus, and departmental acts. There are important legislative acts (decrees and edicts) of the President of the Republic of Belarus.

An entire chapter is devoted to insurance in the Civil Code of the Republic of Belarus. The main insurance relations are regulated by the Regulations on insurance activities in the Republic of Belarus, approved by Decree of the President of the Republic of Belarus dated August 25, 2006 No. 530 “On Insurance Activities” and Decree of the President of the Republic of Belarus dated August 25, 2006 No. 531 “On Setting the Sizes of Insurance Tariffs, premiums, limits of liability for certain types of compulsory insurance. There is a special law of the Republic of Belarus "On Insurance". Insurance regulations are contained in many other laws.

Under an insurance contract, one party (the insurer) undertakes, upon the occurrence of an insured event, to pay insurance compensation or the sum insured to the insured or other person entitled to receive it, and the other party undertakes to pay insurance premiums on time and comply with other conditions of the contract.

The insurance contract is concluded in writing by issuing an insurance policy by the insurer.

The essential terms of the insurance contract are recognized: the object of insurance, the amount of the sum insured, insurance premiums and the terms of their payment, the list of insured events, the term of insurance, the beginning and end of the insurance contract.

The insurance contract comes into force from the moment of payment of the initial insurance premium, unless otherwise provided by agreement of the parties or legislation.

On insurance activities in the Republic of Belarus: Decree of the President of the Republic of Belarus dated August 25, 2006 No. 530 // Consultant Plus: Belarus (Electronic resource) / YurSpektr, Nat. Center for Legal Information of the Republic of Belarus. - Minsk. - 2009.

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Currently, the importance of insurance arises due to the following circumstances:

The frequency and severity of natural disasters and other adverse events are objectively increasing;

New, complex risks are generated by scientific and technological progress - from explosions and fires when introducing new technologies to risks associated with new information technologies, genetics, etc. It is important to note that these are new risks with no experience in managing them;

The development of the economy leads to the complication of economic relations, at the same time, it is known that the more complex the system, the easier it is to bring it out of equilibrium. The break of one economic connection (short supply of products due to a fire at the supplier) in some cases puts the entire chain of producers and consumers in critical conditions. In addition, the development of the economy gives rise to a lot of new business risks, especially in the field of financial risk (exchange, banking);

For all countries with developed economies, the problem of population aging is common, which exacerbates the need for human protection (providing him with the necessary medical care and ensuring decent income in old age).

Under such conditions, the protection of society cannot be ensured without the help of insurance. These problems are also relevant for Russia. Moreover, in Russia the objective need for insurance is increased for the following reasons:

The ability of the state and society to provide assistance and compensation for damage in the event of adverse events is limited due to lack of resources;

The production assets of most enterprises have a high percentage of depreciation, respectively, exposure to various risks is increased;

Many industries use outdated technologies that pose a risk to participants in production and the environment;

There is a certain socio-economic instability of society.

With the help of insurance, the risk is transferred to a professional - an insurance organization that has appropriate risk management specialists. By compensating for damage, insurance ensures the continuity of the economic activity of market economy entities and thus contributes to the stability of the national economy. Insurance protection of an economic entity, the national economy and specific members of society is, of course, the main task of insurance.

The impact of insurance on the economy and society is not limited to this:

In the process of insurance, small, scattered contributions of policyholders are accumulated by the insurer and converted into investment capital;

Insurance as a branch of the economy is a labor market;

Insurance makes a significant contribution to ensuring solvent demand in the country, compensating the insured for losses (a new car is bought instead of a broken car, a new one is built on the site of the destroyed plant) and paying for the work of specialists involved in insurance;

Insurance stimulates scientific and technological progress, providing protection for venture, science-intensive, new industries. Not every entrepreneur would take the risk of investing in such projects without insurance coverage;

The successful activity of insurers contributes to an increase in a part of the country's budget both due to tax revenues from the insurance company itself, its employees, and tax revenues from policyholders whose business activities did not stop due to any unforeseen events, but received support in the form of insurance payments;

The insurance industry is one of the largest owners of information. Insurance companies have accumulated unique statistics on accidents, catastrophes, and natural disasters. In addition, databases of insurers include information about the risks of their clients - both legal entities and individuals. Thus, insurance creates unique information systems, including at the international level.

Currently, the importance of insurance is increasing due to the following circumstances:

· the frequency and severity of natural disasters and other adverse events are objectively increasing;

· New, complex risks are generated by scientific and technological progress - from explosions and fires during the introduction of new technologies to risks associated with new information technologies, genetics, etc. it is important to note that these are new risks with no experience in managing them;

· the development of the economy leads to the complication of economic relations, at the same time, it is known that the more complex the system, the easier it is to bring it out of equilibrium. The break of one economic connection (short supply of products due to a fire at the supplier) in some cases puts the entire chain of producers and consumers in critical conditions. In addition, the development of the economy gives rise to a lot of new entrepreneurial risks, especially in the financial market (exchange, banking);

· for all countries with developed economies, the problem of population aging is common, which exacerbates the need for human protection (providing him with the necessary medical care and ensuring decent income in old age);

· the density of industrial facilities, housing, cultural and historical values ​​dramatically increases the likelihood of risk cumulation. At the same time, there is an increase in the cost of one object (for example, oil rigs and other complex technological structures). Together, these two phenomena increase the risk of catastrophic damage;

Finally, one cannot but note the general process of the criminalization of society - starting from culture (romanticization of situations related to the violation of the law) and ending with the statistics of criminal offenses, facts of corruption, etc.

Under such conditions, the protection of society cannot be ensured without the help of insurance. These problems are also relevant for Russia. Moreover, in Russia the objective need for insurance is increased for the following reasons:

1. the ability of the state and society to provide assistance and compensation for damage in the event of adverse events is limited due to lack of resources;

2. the production assets of most enterprises have a high percentage of depreciation, respectively, exposure to various risks is increased;

3. many industries use outdated technologies that pose a danger to participants in production and the natural environment;

4. There is a certain socio-economic instability of the society.

These and a number of other factors confirm the relevance of insurance. Indeed, insurance is one of the most important elements in the system of risk management methods. According to the EU and the US, market entities allocate up to 50% of the funds spent on risk protection to insurance.

With the help of insurance, the risk is transferred to a professional - an insurance organization that has appropriate risk management specialists. By compensating for damage, insurance ensures the continuity of the economic activity of market economy entities and thus contributes to the stability of the national economy. Insurance protection of an economic entity, the national economy and specific members of society is certainly the main task of insurance. The impact of insurance on the economy and society is not limited to this:

· in the insurance process, small, scattered contributions of policyholders are accumulated by the insurer and converted into investment capital;

insurance as a branch of the economy is a labor market.

In addition to increasing employment directly in the insurance sector, insurance contributes to an increase in employment in industries that are clients of the insurance company or associated with them. As a rule, after the occurrence of an insured event that caused damage or destruction of any property, at the expense of the insurance compensation paid by the insurer, the insured restores the affected object, providing additional jobs and paying the cost of hiring labor;

insurance makes a significant contribution to ensuring the solvency of demand in the country, compensating the insured for losses (a new car is bought instead of a broken car, a new one is built on the site of the destroyed plant) and paying for the work of specialists involved in insurance;

· insurance stimulates scientific and technological progress (STP), providing protection for venture, science-intensive, new industries. Not every entrepreneur would take the risk of investing in such projects without insurance coverage;

· We should not forget about such socially significant branches of insurance as medical and pension insurance. In the current demographic situation, full provision in old age is possible only with the help of insurance;

· In the modern world, the possibility of financing by insurance companies of measures to prevent or reduce the likelihood of insured events, mitigate insurance risk, and reduce the amount of damage is becoming important. The expediency of these measures lies in the fact that the economic effect of allocating part of the funds of insurance companies for preventive activities is manifested in the reduction of possible payments of insurance compensation and security in the future. Sometimes such programs are social in nature and contribute to improving the quality of life of the population;

Successful activity of insurers contributes to an increase in the revenue side of the country's budget both due to tax revenues from the insurance company itself (profit tax, property tax, etc.), its employees (income tax), and tax revenues from policyholders whose economic activity does not stopped due to some unforeseen events, and received support in the form of an insurance payment;

· The insurance industry is one of the largest owners of information. Insurance companies have accumulated unique statistics on accidents, catastrophes, and natural disasters. In addition, databases of insurers include information about the risks of their clients - both legal entities and individuals. Thus, insurance creates unique information systems, including at the international level.

Special studies in the field of psychology have shown that in a country where entrepreneurs and the population have insurance policies "for all occasions", social tension in society is significantly reduced.

The role of insurance is so important that insurance is considered to be a sector of the economy.

insurance fund distribution

Introduction

To date, the activity of each person is somehow associated with risk. That is why people seek to protect themselves from the danger that threatens them with the loss of life, health, and housing. This aspect is the source of the emergence of such an activity as insurance.

Insurance is the most important element of the system of public, mainly economic relations, which is inherent in any historically established form of joint activity of people. From the moment of its inception, insurance has gradually taken shape as an effective way to compensate for damage caused to the owner of material assets as a result of extraordinary events that have occurred at all times, with all systems of human society. Naturally, the owner of material assets or a manufacturer, any person does not want to be at risk of losing property or health and is interested in the existence of a source of funds to compensate for losses in the event of an insured event.

It can be said that every person, the owner of property, has an insurable interest, and would like to be protected in case of an emergency event, i.e. be insured.

The role of insurance in modern conditions is great, since insurance is not only a certain economic activity of a subject of the economy, but also the behavior of individuals and enterprises in general. This is due to the formation of special insurance funds for the enterprise. Individuals can organize appropriate organizations to reduce the damage from various adverse events. Even in everyday life, most people have savings in case of some kind of unforeseen event.

The role of insurance in modern conditions. Insurance as an economic category

Insurance is a relationship to protect the property interests of individuals and legal entities in the event of certain events (insured events) at the expense of monetary funds formed from the insurance premiums (insurance premiums) paid by them.

Insurance is a business transaction aimed at compensating for losses arising from any accidental disasters by distributing the risk among many. Insurance is aimed either at protecting individual households from certain unfavorable accidents (fire, hail, loss of an able-bodied family member, epizootic, sea wreck, etc.), or at creating security for an individual in the form of a certain capital by a certain date.

Also, according to the object of insurance and the type of disaster, there are insurance against fire, hail, livestock, land and sea transport, life, accidents on railways, old age insurance, disability insurance, sickness insurance, dowry insurance, worker insurance. Life insurance:

issuance of a certain amount to the heirs in the event of the death of the insured;

receiving a certain amount upon reaching the agreed age (survival insurance);

receiving a lifetime income (rent) from a certain age;

different types of mixed insurance.

Insurance of workers against accidents at work, against illness, disability, old age, unemployment is organized in the form of compulsory mutual insurance, in which workers and employers, and sometimes the state, participate with their contributions.

In Russia, the most common insurance against fire (joint-stock and mutual insurance companies) and life insurance. Accident insurance for workers is underdeveloped; in view of the absence of compulsory insurance for workers, it is not widely used to this day. Insurance of property interests of legal entities located on the territory of the Russian Federation (with the exception of reinsurance and mutual insurance) and property interests of individuals - residents of the Russian Federation can only be carried out by legal entities that have a license to carry out insurance activities on the territory of the Russian Federation.

As an economic category, insurance represents a system of economic relations, including a set of forms and methods for the formation of trust funds of funds and their use to compensate for damage at various risks, as well as to assist citizens in the event of certain events in their lives. It acts, on the one hand, as a means of protecting business and the well-being of people, and on the other hand, as a type of activity that generates income. The sources of profit for an insurance organization are income from insurance activities, from investments of temporarily free funds in objects of production and non-production areas of activity, shares of enterprises, bank deposits, etc. The economic role of insurance can be shown through the most important concepts - economic categories, reflecting in an abstract form certain aggregates of homogeneous specific economic relations. There are three such categories that are of interest in the knowledge of insurance: the economic category of insurance protection of social production; economic category of insurance protection of property and income of the population; economic category of insurance.

Human society can exist only by producing material goods. In the process of production, at all stages of the movement of a social product from production to consumption, people actively enter into relations with the forces of nature and in relations with each other. In other words, social production has two aspects: productive forces (relationships between people and nature) and production relations (relationships between people in the process of production). Since insurance is an element of production relations, the contradictory nature of social production, regardless of the will of people, creates conditions for the emergence of emergency circumstances, the occurrence of random events that have negative consequences, and the process of social production itself objectively acquires a risky character.
The risky nature of social production and the need to compensate for possible damage is a prerequisite for the emergence of insurance relations. The essence of the economic category of insurance protection of social production consists in the insurance risk of violation of the continuity of social production and in the corresponding protective measures of their totality. The essence of the economic category of insurance protection of property and income of the population lies in the insurance risk of loss of property, health and income of the population, as well as in the appropriate protective measures and in their totality.

The economic category of insurance is a theoretical expression of the real-life social and production relations between people regarding the prevention, localization and overcoming of the negative consequences of emergency events of a natural and social nature, as well as unconditional compensation for the damage caused by them.
Insurance, as an economic category, is a system of economic relations that includes a set of redistributive relations of a closed circle of its participants regarding the formation of a target insurance fund at the expense of their monetary contributions and the expenditure of funds to compensate for possible damage to enterprises and organizations in the event of emergency events, as well as on material providing citizens with the occurrence of certain events in their lives.

The role of insurance in ensuring the stability of social production

The objective economic necessity of using insurance for the purpose of insurance protection of social production, entrepreneurship and the welfare of citizens is due to the isolation of economic entities, the increased level of financial risks and property interests.

The abundance of approaches suggests that with the demonopolization of the administrative management of the national economy as a whole, the introduction of economic levers of management and maneuvering financial resources, the most effective method of compensating for possible damage is its layout in space and time between interested individuals and legal entities. Unforeseen and natural disasters are perceived by people as random events, are uneven, and the number of victims is always less than the number of interested individuals or households; therefore, the more stakeholders involved in the damage assessment, the smaller the share of funds for each participant.

However, it has been proven that the negative manifestations of the spontaneous nature of the forces of nature and society, associated with material losses, occur periodically and have an objective, natural process caused by contradictions in economic relations and technogenic problems. There is a risk. Risk is objectively inherent in various stages of social reproduction and any socio-economic relations. It is natural to assume that any economic entity is interested in the existence of sources of compensation for the damage suffered and the provision of insurance protection to it in the event of adverse circumstances.

The financial category of insurance expresses its essence primarily through the insurance of financial risks: business, commercial, exchange, currency, banking and credit.
It should be noted that the material embodiment of the economic category of insurance protection is the insurance fund, which is a set of allocated (reserved) natural reserves of material goods.
The need for insurance protection, realized by a person and society as a whole, formed insurance interests, through which certain insurance relations began to take shape.

Gradually, with the development of social relations, and hence the growth of risk, there was an objective need for risk assessment, based on the analysis of facts and circumstances, their accumulation, generalization and systematization.

Thus, a scientific basis is brought under the economic category of insurance protection. And this means that, despite the random nature of the onset of a natural disaster or other destructive event, it became possible to scientifically predict them, thanks to which the insurer can consciously implement measures to prevent the adverse consequences of the occurrence of an insured risk.

The role of insurance in our society

Insurance in modern society plays the following roles:

insurance is a market stabilizer, since there is a transfer of risk to

professional;

the role of insurance in the formation of investment capital;

insurance shapes the labor market;

insurance makes a significant contribution to the formation of solvent demand;

stimulation of the development of scientific and technological progress:

a) protection of new high-risk technologies

b) direct financing of scientific developments;

insurance is a socially significant industry (pension, medical);

participation of the insurer in the financing of preventive measures;

the successful activity of insurers contributes to an increase in the revenue side of the budget;

special studies in the field of psychology have shown that in a country in which there are on average more than 5 insurance contracts per family, social tension in society is reduced.

Insurance features

The economic essence of insurance is embodied in functions that reflect in reality the social purpose of this category. Functions are external forms that make it possible to identify the features of insurance as a part (subsystem) of the country's financial system. Thus, the following functions are distinguished: risk function, preventive, savings and control.

risk function

It consists in the transfer for a fee to the insurer of liability for the consequences of the risk caused by events, the list of which is prescribed by the current legislation or contract. The higher the probability and size of the risk, the higher the payment for its insurance, calculated on the basis of tariffs determined using actuarial calculations, is greater. In the event of an insured event, the policyholder requires the insurer to pay for losses (payment of the sum insured).

Warning function

This function carries the prevention of an insured event and minimization of damage. It involves a wide range of measures, including the financing of measures to prevent or reduce the negative consequences of accidents and natural disasters. This also includes the legal impact on the insured, enshrined in the terms of the concluded insurance contract and focused on his careful attitude to the insured property. The insurer's measures to prevent an insured event and minimize damage are called prevention, hence the name of the function - preventive. In order to implement this function, the insurer forms a special monetary fund for preventive measures.

savings function

Insurance becomes possible only if the insurer has a certain capital sufficient to cover losses (if any) caused to the insured by a natural disaster, accident or other insured event. The insurer, in most cases, is not able to cover such a need for cash payments with its own funds. Therefore, each insurer creates a system of insurance reserves. The accumulation and use of such reserves is typical for insurance activities, since it is from these saved funds that the insured will be paid the sum insured.

control function

This function of insurance is to ensure the strictly targeted formation and use of the insurance fund on the basis of legislation governing insurance activities. The implementation of the control function is implemented through financial control over the legality of insurance operations by insurers.

If insurance is recognized as a sub-category of finance, then it is endowed with the functions of finance on the grounds that the particular may have other functions than the whole. If insurance is an independent category, then it is endowed with the following functions:

formation of a specialized insurance fund of funds;

compensation for damage and material support of citizens;

prevention of an insured event and minimization of losses.

Conclusion

Insurance - is a complex social-production relations. In Russia, these relations are developing, as well as the economy as a whole.

Insurance is important for the economic development of the country, it contributes to the emergence of truly market relations, free from any adverse external influences. Enterprises will be able to fully engage in their immediate activities, regardless of random, in many cases fatal situations. It is necessary to more deeply inform the administrations of enterprises and individuals about new types of insurance services, and about insurance in general. Many do not know or do not fully understand insurance, therefore they do not represent all its useful features and functions.

In Russia, the improvement and development of insurance proceeds very slowly, but there are huge prospects for the development of this area, since the economy is still being formed. It is important that insurance take its rightful place in the country's economy, since this type of activity contributes to the emergence of a truly market economy (as well as a new society), not dependent on adverse random effects that are detrimental to the existence of economic and social entities.

Insurance should take its rightful place in the economy of our country, along with the most important areas such as finance, taxation, audit, and management.

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