PROSPECTIVE DIRECTIONS FOR THE DEVELOPMENT OF INSURANCE IN INTERNATIONAL BUSINESS

Main Article Content

Lesya HARYAGA
Viktoriia DENYSENKO
Alina PROSHCHALYKINA
Valeriy BALEV

Abstract

Introduction. In the modern context of globalization and economic instability, insurance plays a key role in ensuring the financial security of international business. The continuous rise in risks associated with geopolitical factors, climate change, digitalization, and the development of new technologies necessitates the adaptation of insurance services to emerging challenges.


The prospective directions for the development of insurance in international business are shaped by companies' needs to minimize risks and the implementation of innovative insurance products. In particular, there is significant growth in cyber insurance, environmental insurance, and the use of blockchain technology and artificial intelligence for risk assessment and data processing.


Purpose. Justification of promising areas of development of insurance in international business.


Results. The study establishes that insurance in international business is a crucial risk management tool, particularly in the context of globalization and economic instability. Key areas of insurance in international business have been identified, including: cyber insurance – the growing threats and increasing number of cyber incidents are driving demand for insurance products that cover losses from IT system attacks; environmental insurance – companies are increasingly protecting themselves against environmental risks and liabilities related to environmental damage; microinsurance – a promising direction for developing countries, where the penetration of insurance services remains low; political risk insurance – a vital instrument for safeguarding investments and exports in politically unstable regions; reinsurance – used to distribute large risks among multiple insurance companies. Based on the analysis of insurance market indicators across various countries, key trends in the development of the global insurance market have been identified.


Originality. A comprehensive analysis of insurance markets in various countries, including the United States, China, the United Kingdom, Germany, France, and Ukraine, has been conducted. Quantitative indicators such as insurance premiums, claim payout levels, and insurance density have been provided, allowing for an assessment of market dynamics. The study identifies trends in the growth of insurance premiums in developed countries and potential directions for insurance market development in emerging economies. New challenges in international business insurance have been identified, including the rising risks associated with cybersecurity, climate change, pandemics, and geopolitical tensions. New data on the structure of the insurance market in the U.S. and Europe have been presented, which can be utilized in developing international business strategies. Key types of insurance services most relevant to international business have been summarized, including political risk insurance, credit insurance, liability insurance, and cyber insurance. Practical measures have been proposed to mitigate the negative consequences of cyber risks by adapting insurance products to emerging threats.


Conclusion. Prospective directions for the development of insurance in international business have been proposed, including: digitalization of insurance services (adoption of online platforms, cyber insurance, artificial intelligence (AI), Big Data, the Internet of Things (IoT), and blockchain to enhance efficiency, security, and customer experience); development of microinsurance (expanding access to insurance for low-income individuals and small businesses that often cannot afford traditional insurance products); growth of insurance in developing countries (improving financial literacy, government and international organization support, localization of insurance products, and partnerships with local insurance companies to strengthen market penetration); implementation of innovative products (advancing cyber insurance, environmentally focused insurance, health insurance powered by IoT, and travel insurance tailored for pandemic-related risks).

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