The Impact of Regional Factors on the Insurance Market

The following paper examines the relationship between the development of the insurance market and socio-economic potential of the region. The developed insurance market is an integral part of functioning of high-developed market economy, not only at the state level but also at the level of a given region. The insurance market is increasingly formed by regional markets. However, there are significant disproportions in the development of regional markets. The problem of development of the regional insurance is actual but unexplored. It is clear that the development of the insurance industry includes a number of factors, which are unmanageable. The purpose of this paper is to identify the most important indicators that influence the development of the insurance market and calculate them, and then identify the regions with the most developed insurance potential. This paper consists of three chapters. In the first chapter the present situation of the insurance market are analyzed. In the second chapter the researches of previous authors will be discussed in detail and their approaches will be compared. Besides, the strengths and weaknesses of each research will be identified and the methods of improvement will be offered. The third chapter includes econometric models that describe the dependence between insurance premiums and the socio-economic factors of regions. 1. There is a disproportion in the development of the regions. In addition, about half the regions have indicators below the average. 2. With the help of the regression model it was found that there is a direct dependency between regional insurance market and the social-economic development of the region. The model shows that in the region with the high standard of living (with the high average salary and income) the insurance services are more popular and insurance premiums are higher.