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Life Insurance Under Reforming The Pension Insurance System

Author

Listed:
  • Ruslana Pikus

    (Taras Shevchenko National University of Kyiv, Ukraine)

  • Anna Khemii

    (Taras Shevchenko National University of Kyiv, Ukraine)

Abstract

The purpose of the paper is to generate practical recommendations on the prospects of life insurance development under reforming the pension insurance system in Ukraine. Methodology. In the article, a considerable attention is paid to international experience, the implementation of which is relevant for Ukraine today. In determining the place of life insurance in European pension systems, the experience of Spain and the United Kingdom is considered, which is sufficiently indicative for Ukraine and can serve as a model for reforming the national pension system. Methodological basis of the article are methods of scientific cognition, which enable to expose basic conformities to the law of development of the pension systems in this countries and place of life insurance in them. Such methods are in particular used as: analysis and synthesis - during the study of reforming pension systems, their detailed analysis and definition of their peculiarities; scientific abstraction - with the purpose of forming of theoretical generalizations and conclusions; also, the method of scientific synthesis, forecasting method, econometric modelling for forecasting the development of life insurance in Ukraine up to 2020. Results. The pension insurance system of Ukraine is at the stage of reformation by introducing compulsory accumulation of pension funds and the development of voluntary non-state pension insurance. The main financial intermediaries providing voluntary pension accumulation services in Ukraine are: banks - through the possibility of saving on retirement deposits, insurance companies - through life insurance products, and non-state pension funds (NPFs) - through the voluntary participation of citizens in such funds. The article discusses the key differences in the activity of the given subjects in the system and also determines the place of life insurance itself in the system of pension insurance in Ukraine. Practical significance. Having considered the key macroeconomic indicators of Ukraine's economic development, the article predicts the volume of investments into NPFs and insurance premiums for life insurance companies using econometric methods; the benefits and prospects of life insurance are determined. Practical recommendations on the prospects of life insurance development under reforming the pension insurance system in Ukraine are formulated. Value/originality. The modelling of the development of the non-state level of the pension system of Ukraine allowed determining the dynamics of growth of contributions to life insurance companies and contributions to the NPFs in 2017-2020 and drawing a conclusion on the positive prospects for the development of the life insurance market in Ukraine and its special role in the successful reformation of Ukraine's pension system.

Suggested Citation

  • Ruslana Pikus & Anna Khemii, 2018. "Life Insurance Under Reforming The Pension Insurance System," Baltic Journal of Economic Studies, Publishing house "Baltija Publishing", vol. 4(4).
    • Handle: RePEc:bal:journl:2256-0742:2018:4:4:33
    DOI: 10.30525/2256-0742/2018-4-4-223-232
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    References listed on IDEAS

    as
    1. Bovenberg, Lans & Nijman, Theo, 2017. "Personal pensions with risk sharing," Journal of Pension Economics and Finance, Cambridge University Press, vol. 16(4), pages 450-466, October.
    2. International Monetary Fund, 2017. "Spain: Financial Sector Assessment Program-Technical Note-Insurance Sector Supervision and Regulation," IMF Staff Country Reports 2017/338, International Monetary Fund.
    3. International Monetary Fund, 2018. "India: Financial Sector Assessment Program: Insurance Sector Regulation and Supervision-Technical Note," IMF Staff Country Reports 2018/086, International Monetary Fund.
    4. Lucas, Deborah, 2015. "Joint risk of DB pension underfunding and sponsor termination: incorporating option-based projections and valuations into PIMS," Journal of Pension Economics and Finance, Cambridge University Press, vol. 14(2), pages 172-185, April.
    5. International Monetary Fund, 2017. "Sweden: Financial Sector Assessment Program-Technical Note-Insurance Sector Regulation and Supervision," IMF Staff Country Reports 2017/307, International Monetary Fund.
    6. International Monetary Fund, 2018. "Brazil: Financial Sector Assessment Program-Technical Note on Insurance Sector Regulation and Supervision," IMF Staff Country Reports 2018/343, International Monetary Fund.
    7. World Bank & International Monetary Fund, 2017. "Financial Sector Assessment," World Bank Publications - Reports 26016, The World Bank Group.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Nataliya Vnukova & Daria Davydenko & Svitlana Achkasova & Olexandr Yagolnitskyi, 2022. "Assessing the Activities of Insurance Companies Due to the Disease of Private Pension," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 5, pages 179-194.

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    More about this item

    Keywords

    pension insurance; pension system; life insurance; voluntary pension insurance; non-state pension funds;
    All these keywords.

    JEL classification:

    • H55 - Public Economics - - National Government Expenditures and Related Policies - - - Social Security and Public Pensions
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • J32 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Nonwage Labor Costs and Benefits; Retirement Plans; Private Pensions

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