7insurances

The main feature of the fundamental organization of insurance business in the modern period (in contrast to the Soviet period) is its de-monopolization and competition of insurance companies. Along with the state insurance emerged and developed private insurance. Competition, which usually refers to the voluntary insurance.

The competition encourages insurance companies to develop and introduce new types of insurance, constantly improve them, expand the range and cover additional segments of the insurance market. In conducting the same kinds of insurance competition between insurance companies is expressed in the establishment of suitable forms of contract and payment of insurance premiums, reduced tariff rates, prompt payment of insurance compensation and insurance coverage.

Competition in all areas - the main condition for the transition to a market economy. However, insurance - a special kind of activity designed to provide insurance protection to individuals and legal entities. It is therefore important to organize insurance, that insurance companies are not ruined, did not cease their activities. This is accomplished by special methods of state regulation of insurance activities, as well as the development of a clear legal and economic foundations of insurance. Hence the second principle - the need for state regulation of insurance activities, based on a solid legal and economic foundations.

Competition in the insurance, the inherent competition, can not be regarded as an absolute category. In many cases, especially when taking large risks insurance, requires the cooperation of insurers. This cooperation takes the form of coinsurance and reinsurance. An important principle of organization of insurance as part of international economic relations, international cooperation is in the field of insurance, which is caused by an objective necessity in terms of deepening and expanding economic relations. Thus, the cooperation of insurance companies both domestically and abroad is also an important principle of organization of insurance business.