PROSPECTIVE DIRECTIONS FOR THE DEVELOPMENT OF INSURANCE IN INTERNATIONAL BUSINESS
Main Article Content
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).
Article Details
The authors published in this journal agree with following conditions:
1. The authors reserve to themselves the right to the authorship of their works and transfer the right of their first publication to the journal on the terms of Creatіve Common Attrіbutіon Lіcense which allows to freely extend to other persons the published work with an obligatory reference to the authors of the original work and its first publication in this journal.
2. The authors have the right to complete independent additional agreements concerning the not exclusive distribution of their work in the form in which it was published in this journal (for example, to place the work in the electronic storehouse of an establishment or to publish as a monograph component), under the condition of the preservation of the reference to the first publication of the work in this journal.
3. The journal’s policy allows and encourage the authors to place their manuscripts into the Internet (for example, in depositories of establishments or on personal web-sites) either before submitting of the manuscript for publication or during its editorial processing as it assists the occurrence of a productive scientific discussion and positively affects the efficiency and dynamics of citing of the published work.
AGREEMENT
ABOUT TRANSMISSION OF COPYRIGHT
I, the author of the article / We, the authors of the manuscript _______________________________________________________________________
in case of its acceptance for publication, we transfer the following rights to the founders and editorial boards of the scientific publication "BULLETIN OF THE CHERKASY BOHDAN KHMELNYTSKY NATIONAL UNIVERSITY. ECONOMIC SCIENCES. SERIES "ECONOMIC SCIENCES":
1. Publication of this article in Ukrainian (English, Russian, Polish) and distribution of its printed version.
2. Dissemination of the electronic version of the article through any electronic means (placing on the official journal web site, in electronic databases, repositories, etc.).
At the same time we reserve the right without consent of the editorial board and the founders:
1. Use the materials of the article in whole or in part for educational purposes.
2. To use the materials of the article in whole or in part for writing your own theses.
3. Use article materials to prepare abstracts, conference reports, and oral presentations.
4. Post electronic copies of the article (including the final electronic version downloaded from the journal's official website) to:
a. personal web-pecypcax of all authors (web sites, web pages, blogs, etc.);
b. web-pecypcax of the institutions where the authors work (including electronic institutional repositories);
with. non-profit, open-source web-pecypcax (such as arXiv.org).
With this agreement, we also certify that the submitted manuscript meets the following criteria:
1. Does not contain calls for violence, incitement of racial or ethnic enmity, which are disturbing, threatening, shameful, libelous, cruel, indecent, vulgar, etc.
2. Does not infringe the copyrights and intellectual property rights of others or organizations; contains all the references to the cited authors and / or publications envisaged by applicable copyright law, as well as the results and facts used in the article by other authors or organizations.
3. It has not been previously published in other publishers and has not been published in other publications.
4. Does not include materials that are not subject to publication in the open press, in accordance with applicable law.
____________________ ___________________
First name, Last name, signature of the author
"___" __________ 20__
References
Bazylevych, V. D. (2008). The global insurance market. Visnyk Kyivskoho natsionalnoho universytetu imeni Tarasa Shevchenka. Ekonomika (Bulletin of Taras Shevchenko National University of Kyiv. Economics), (104), 4–11.
Kozmenko, O. V., Kozmenko, S. M., & Vasylieva, T. A. (2011). Insurance and reinsurance markets in the era of globalization: A monograph. Sumy: Universytetska Knyha. 388 (in Ukr.)
Hamankova, O. O., & Hamankov, D. V. (2009). The formation of market relations in the insurance sector in Ukraine and the role of the state in regulating these processes. Visnyk Kyivskoho natsionalnoho universytetu imeni Tarasa Shevchenka. Ekonomika (Bulletin of Taras Shevchenko National University of Kyiv. Economics), (113-114), 14–19.
Kulyna, H., & Farion, Ya. (2017). The global insurance services market under the paradigm shift of global economic development. Svit finansiv (World of Finance), (3), 48–59.
Bratyuk, V. P. (2022). Modern realities in Ukraine and the insurance market. Proceedings of the IV International Scientific and Practical Conference "Management of Socio-Economic Transformations of Economic Processes: Realities and Challenges", 19–21. Mukachevo: Mukachevo State University.
Pyshnyi, P. (2024). Insurance against drones and missile attacks. How investors can protect their capital in Ukraine from war risks. Main news of Ukraine and the world for the day. Retrieved from: https://delo.ua/finance/yak-investori-zmozut-zaxistiti-svoyi-vkladennya-v-ukrayini-vid-viiskovix-rizikiv-413250/ (Аccessed: 13.12.2024).
Kaliuzhnyi, R. A., Andrushchenko, L. V., & Andrushchenko, I. H. (2012). State-legal regulation of insurance in the field of foreign economic activity. Kyiv: MP Lesia. 184 (in Ukr.)
Allianz Risk Barometer 2022. January 2022. Allianz. Retrieved from: https://commercial.allianz.com/content/dam/onemarketing/commercial/commercial/countries/japan/AGCS_Japan_ARB_Report_2022_(E).pdf (Аccessed: 13.12.2024)
Allianz Risk Barometer 2022: Cyber risks return to first place. Allianz. Retrieved from: https://riskonnect.com/integrated-risk-management/risk-management-techniques/ (Аccessed:13.12.2024)
Allianz Risk Barometer 2023. Allianz. Retrieved from: https://commercial.allianz.com/content/dam/onemarketing/commercial/commercial/reports/Allianz-Risk-Barometer-2023.pdf (Аccessed:13.12.2024)
Allianz Risk Barometer 2024. Allianz. Retrieved from: https://commercial.allianz.com/content/dam/onemarketing/commercial/commercial/reports/Allianz-Risk-Barometer-2024.pdf (Аccessed:13.12.2024)
The State of Ransomware 2023. Sophos, 2024. 26 p. Retrieved from: https://www.congress.gov/118/meeting/house/116406/documents/HHRG-118-GO12-20230927-SD003.pdf (Аccessed:13.12.2024)
Insurance Europe’s Annual Report 2023–2024. Insurance Europe, Brussels, 2024. 41 р. Retrieved from: https://reports.insuranceeurope.eu/annual-report-2023-2024/s/42/contents (Аccessed: 13.12.2024)
Karnaushenko, A. S., Petrenko, V. S., & Borovik, L. V. (2022). Modern trends and prospects for the development of the European insurance market. Hroshi, finansy i kredyt. "Tavriiskyi naukovyi visnyk. Seriia: Ekonomika" (Money, Finance, and Credit. Tavriyskyi Scientific Bulletin. Series: Economics), (14), 85–94.
Der Versicherungsmarkt Deutschland im Blick. Retrieved from: https://www.versicherungsforen.net/ schaden-leistung/der-versicherungsmarkt-deutschland-im-blick (Аccessed: 25.12.2024)
European Insurance Sector Outlooks at Risk from Inflation, Rising Rates. Retrieved from: https://www.fitchratings.com/research/insurance/european-insurance-sector-outlooks-at-riskfrom-inflation-rising-rates-05-09-2023 (Аccessed:16.12.2024)
Insurance Digital Full-Funnel Marketing: Key Essentials & Stages. Retrieved from: https://beinsure.com/key-essentials-stages-of-insurance-digital-full-funnel-marketing (Аccessed:13.12.2024)
Haryaha, L. O. (2018). Development of the financial market in the context of the digitalization of the economy. Biznes Inform (Business Inform), 11, 388–393.
Panteleeva, N. M., Kolodiy, S. Y., & Rebrik, M. A. (2019). Digital economy as a key trend in the development of post-industrial society (Monograph). Kyiv: University of Banking Business (in Ukr.)
Danyko, Y. I., & Brovko, S. V. (2024). Influence of innovative technologies on the development of the insurance market. Ekonomika ta suspilstvo (Economics and Society), 62. https://doi.org/10.32782/2524-0072/2024-62-8
Key performance indicators of insurance companies. (2024). National Bank of Ukraine. Retrieved from: https://bank.gov.ua/ua/statistic/supervision-statist (Аccessed:10.12.2024)
World insurance. Swiss Re Institute. Sigma research. Retrieved from: https://www.swissre.com/institute/search-page.html?to=20&contentType=Publication&languages=English&researchSeries=sigma&searchterm=sigma&sort_by=Date&sort_by=Date&source=Swiss+Re+Institute (Аccessed: 10.12.2024)
Klymenko, Y. O., & Denysenko, V. O. (2023). Management of financial risks: The case of "SANALYANS" LLC. In Economic potential of the country: Theoretical foundations and practical implementation. Materials of the scientific-practical conference (Ivano-Frankivsk, November 17–18, 2023) (pp. 10–12). Odesa: Publishing House "Molodyi Vchenyi."