STATE REGULATION OF THE INSURANCE MARKET IN FORCE MAJOR SITUATIONS

Abstract

The problems of functioning in extreme conditions of the system and mechanisms of state regulation of the market of insurance services are covered. The current situation in Ukraine during the onset and spread of coronavirus disease (COVID-19) is analyzed. It is shown that the population remained unprotected, alone with the problems, without decent state compensation for the victims. An assessment of the state of the system and mechanisms of state regulation of the market of insurance of risks of occurrence of extraordinary events is carried out. The author’s strategy of construction of insurance of such risks which provides financial support from the state is offered. If the program of insurance of the population against the risks associated with the occurrence and spread of coronavirus disease is created and implemented in the country, the serious problems we observe in Ukraine could be avoided. It is emphasized that in case of force majeure, natural disasters, coronavirus pandemic, etc. the state through the system and mechanisms of state regulation should immediately introduce measures to stimulate the insurance market to compensate for losses and provide support to the affected population. The negative experience of the public administration in ensuring the well-being of the population of Ukraine during the state of emergency caused by the ‘coronavirus crisis’ encourages the introduction at the legislative level of a systematic approach to responding to emergencies, epidemiological challenges, natural and other disasters. The need for state support of the insurance business in this area of Ukraine’s economy is shown on the example of risk insurance in agriculture due to catastrophic deviations of weather conditions from the norm. Prospects for the development of the risk insurance market in the agricultural sector are considered. Proposals are made to improve the protection of the citizens by insuring against the risks of emergencies. Recommendations have been formulated in the direction of mitigating the negative consequences for individuals and legal entities by expanding insurance mechanisms with the use of state support. The necessity of determining by the regulator of the insurance market the principles of construction of insurance programs in case of emergencies is substantiated. It is recommended to create a program of state support for insurance against the risks of emergencies, which will include measures and financial resources to mitigate the negative consequences in the event of a sudden emergence of new pathogens of infectious diseases and other cataclysms of various kinds. New scientific approaches to revealing the essence of insurance of individuals and legal entities in Ukraine against natural disasters, force majeure events, consequences of emergencies are proposed. A radically new approach to the use of the concept of ‘force majeure’, which differs from the conventional one, is proposed.