In the classical definition, competition in the insurance market is considered as a process of competition between insurance companies for policyholders using price (tariff) and non-price methods.
At the same time, a fairly large number of situations arise in the insurance market that do not fit into the traditional scheme “several insurers compete for the policyholder”:
The competition of insurers for policyholders was noted not only with each other, but also with others financial institutions(banks, investment companies, non-state pension funds);
To compete for one need Insurance companies can use different types of insurance;
· There are situations of competition for policyholders between different divisions (sales channels) of one insurer;
· Monopoly and oligopoly of insurers are implemented in various segments (niches) of the insurance market.
The emerging state of "deterministic" uncertainty leads to the need to rethink the term "competition" in the insurance market, as well as to highlight and describe new types of competition in insurance.
Competition in the insurance market can be defined as competition for the consumer of services between insurance companies, between insurance companies and financial companies, between insurance companies and non-financial companies, between the selling divisions of one insurance company using pricing (tariff) and non-pricing mechanisms.
Consequently, the classification of the types of competition in the insurance market can be based on the attribute "subject of competition". If competition is carried out between insurance companies (or divisions of one company), then such competition is intramarket, to which the classical competition previously described in the scientific literature belongs. Intermarket competition includes competition between insurance companies and other financial institutions (banks, investment companies, private pension funds) or non-financial organizations (medical clinics, car dealers).
Thus, new types of competition in the insurance market should include intermarket competition, as well as channel and specific competition as part of intramarket competition.
The main reasons for the emergence of new types of competition in the insurance market are:
· Irrational behavior of a client who does not have the knowledge or level of information sufficient to accurately identify and choose an insurance service.
· Imperfection of the insurance market, allowing the use of various types of insurance and other services to meet the same needs of the client.
Intermarket competition manifests itself through the process of competition between insurance companies and other companies that are not subjects of the insurance market for the consumer of insurance or non-insurance services with similar consumer properties. In the insurance market, the following cases of intermarket competition can be described:
1. Competition between investment life insurance programs (insurers) and structured investment programs ( investment companies) or deposits (banks).
2. Competition between pension insurance programs (insurers) and voluntary pension plans (non-state pension funds).
3. Competition between voluntary programs health insurance(insurers) and annual attachment programs (medical clinics).
4. Competition between “Extended Warranty” breakdown insurance programs (insurers) and extended warranty programs from car manufacturers (car dealers).
5. Competition between roadside assistance insurance programs (insurers) and service programs (auto clubs, car dealers).
6. Competition between mortgage insurance programs (insurers) and increased interest rate on mortgage without down payment(banks).
Interspecies competition is a form of intramarket competition and manifests itself in the form of competition for the client between insurance companies or between the selling divisions of one insurance company using different types insurance to meet one need for insurance coverage.
In the modern insurance market in Russian Federation the following examples of interspecies competition can be described:
1. Travel insurance is carried out by some companies under the VHI, other companies under the insurance financial risks(unforeseen expenses).
2. Insurance against loss of work by life insurers is carried out under risk insurance (the risk of surviving until the event of “loss of work”) or by non-life insurers within the framework of financial risks insurance.
3. Management of the risk of non-repayment of the loan in the event of the death of the borrower can be carried out through the personal insurance of the borrower in case of death or insurance of the financial risks of the credit institution.
4. Personal insurance of the borrower is carried out by a number of insurers through risk life insurance, by other insurers through accident and illness insurance.
5. The "Anti-tick" program can be implemented through voluntary medical insurance or through insurance against accidents and illnesses.
Channel competition in the insurance market involves competition between insurance companies for customers, taking into account the specifics within a particular sales channel, or competition between insurance companies or selling divisions of the same company for customers between different sales channels.
The selection of channel competition in the insurance market is due to the following factors:
· Different rates and conditions of insurance that may be offered by insurers when purchasing insurance services through different sales channels.
· High commissions of intermediaries, mainly agents and brokers, who, at the expense of their remuneration, provide additional discounts.
· The presence of internal factors of the competitiveness of insurance services in sales through intermediaries.
· Possibility of monopolization by any insurance company of a separate channel for the sale of insurance services, which is most often manifested in the banking channel.
In conditions of economic turbulence, the emergence of new types of competition in the insurance market should be taken into account by insurance companies when developing development strategies and operational marketing plans, first of all, their negative impact (stagnation of collected premiums by type or channel, monopolization of a specific sales channel, image influence, decrease in influence traditional factors of competitiveness).
Bibliography
1. Berlin E.S., Bryzgalov D.V. New target segment for insurance companies // Organization of sales of insurance products, No. 5, 2006
2. Bryzgalov DV, Tsyganov AA Features of the competition of sales channels in the insurance market of the Russian Federation // Scientific and practical journal "Modern competition", No. 1 (43), 2014.
3. Bryzgalov D.V., Tsyganov A.A. Features of the concept of competition in different approaches to the definition of insurance and the insurance market // Scientific and practical journal "Modern Competition", No. 1 (37), 2013.
4. Bryzgalov D.V., Tsyganov A.A. New forms of competition in the insurance market // Financial Journal, No. 3 (21), 2014.
5. Bryzgalov D.V. Features of market and intermarket competition in the paid market medical services// Organization of sales of insurance products, No. 2-3, 2012.
6. Bryzgalov D.V. Price incentives in insurance: new forms and directions of modification in 2008. // Organization of sales of insurance products. 2008. No. 6. P.16 - 23.
7. Zhuk I.N. Analysis of competition in the insurance market of the Russian Federation and its individual segments // Insurance business. - No. 6, 2011
8. Solomatina A.S. Formation of a multivariate model for assessing the competitiveness of an insurance company. // - Scientific notes Russian Academy entrepreneurship. - No. 37, 2013.
Competition- an indicator of the maturity of the insurance market. A real market economy is inconceivable without competition. In this regard, there is an urgent need to study competition, its level and intensity, to know the forces and market opportunities of the most significant competitors, the prospects for competition in selected segments of the insurance market. The presence of competitors forces each insurer to be extremely attentive to the requests of its clients.
The essence of competition is balance of utility insurance products. Comparing the ratio of utility to price for each of them reveals the advantage of each of the insurance products. In the competitive struggle, the winner is the one whose ratio is greater than that of others. Based on the balance of utility, competition can be carried out (increase the ratio of utility to price) by price and non-price methods.
At the heart of price competition lies the tariff rate at which it is proposed to conclude an insurance contract of this type. Reducing the tariff rate has always been the basis with which the insurer, allocating its insurance services from the general list, attracted the attention of a potential policyholder to them. Price competition is used mainly by outsider insurers in their fight against giants of the insurance business, for which outsiders do not have the strength and ability to compete with them in the field of non-price competition.
Non-price competition brings to the fore the additional services of insurers to its clients (preemptive right to purchase shares of an insurance company, assistance in purchasing real estate, free legal advice, etc.). Advertising is the strongest weapon of non-price competition. With its help, insurance companies strive to create a prestigious image of their company in the eyes of policyholders.
All insurance services are tested for the degree of satisfaction of social needs, which are expressed in collective, group and individual insurance interests. This check is carried out in the insurance market, where each policyholder purchases exactly the insurance policy that most fully satisfies his insurance interests. In this regard competitiveness of the insurer represents the opportunity to market insurance products in a given market, taking into account the existing insurance interests. Allocate economic and organizational parameters that characterize the competitiveness of the insurer. Among economic parameters Includes expenses for personnel training, commissions for insurance agents, taxation of income from insurance activities, etc. Organizational parameters draws up a system of discounts and benefits for policyholders on the terms and conditions of concluded insurance contracts. Ideally, the economic and organizational parameters of the insurer's competitiveness should be focused on taking into account the needs of all potential clients of the insurer.
Conclusion (trends in the development of insurance business in modern Russia)
There are significant opportunities and prospects for the development of the insurance market and the insurance business in the Russian Federation, namely: a huge territory of the country, an almost 150 million population, the presence of economic entities of various organizational and legal forms and types of property, the emergence of new types of insurance, etc.
To solve the problems of ensuring reliability and financial sustainability the insurance system is one of: the priority areas of activity of insurance organizations and reinsurance companies is to increase minimum size the authorized capital, as well as its formation exclusively at the expense of funds.
One of the main trends in the development of the insurance market is the concentration of the insurance business, as a result of which financially weak insurance organizations will yield the market to the most stable companies capable of developing the national insurance business in accordance with modern requirements.
Regulation of structural changes should include protection of fair competition in the insurance market, prevention and suppression of monopoly.
In connection with Russia's accession to the World Trade Organization (WTO), the growth of the reinsurance system has been outlined, which makes it possible to encourage the development of various forms of association of insurers in order to implement large insurance projects.
The arrival of a large number of foreign insurers requires special attention from the state to support national insurance companies. Reasonable protectionist measures need to be implemented, including tax regulation combined with the development of insurance infrastructure.
Financial resources of insurance companies can become an investment basis for dynamic development Russian economy in the short term.
480 RUB | UAH 150 | $ 7.5 ", MOUSEOFF, FGCOLOR," #FFFFCC ", BGCOLOR," # 393939 ");" onMouseOut = "return nd ();"> Dissertation - 480 rubles, delivery 10 minutes, around the clock, seven days a week
Volkov Vladimir Vladimirovich. Development of the competitive environment of the Russian insurance market: dissertation ... of the candidate economic sciences: 08.00.10 / Volkov Vladimir Vladimirovich; [Place of protection: Ros. economy acad. them. G.V. Plekhanov] .- Moscow, 2009.- 175 p .: ill. RSL OD, 61 09-8 / 1447
Introduction
Chapter 1. Methodological foundations for the formation of a competitive environment in the insurance market
1.1. Main characteristics and conditions for ensuring a competitive environment in the insurance market
1.2. Signs of competitiveness of an insurance organization 26
1.3. Specific features of the competitiveness of insurance services 39
Chapter 2. Analysis of competitive strategies of Russian insurers
2.1. Key Areas of Competitive Strategy 53
2.2. Development of branch insurance networks as a competitive advantage of insurance organizations
2.4. Qualifying competition in the promotion of insurance products on the market
3.1. Competition based on the capitalization of an insurance organization
3.2. Reorganization of the domestic insurance market based on competition
3.3. International competition in insurance markets and its implications for the domestic economy
Conclusion 155
References 160
Applications 174
Introduction to work
The relevance of the research topic is enhanced "in view of the fact that the parameters of the competitiveness of domestic insurance operators are highlighted in the implementation of state political decisions related to Russia's accession to the WTO." International integration processes in the European insurance market, by their nature, require the use of competitive advantages, however, their study and
analyzes are fragmentary, incomplete and often carried out as concomitant, non-targeted research.
The degree of scientific elaboration of the problem. The problems of competitiveness in the modern domestic economy are covered in sufficient detail in the works of E.I. Mazilkina, Yu.B. Rubin, T.G. Filosofova, A.Yu. Yudanov. However, they are dominated by the description of commodity markets and, as a rule, there is no analysis of the foundations of the competitiveness of the insurance market. The scientific works of Western economists * I. Ansoff, A. Lesch, B. Olin, M. Porter, E. Heckscher, G. Hotelling, E. Chamberlin, F. Edjourt, M. Ehrlich, which are becoming more and more relevant in the development of the domestic methodology of competition and competitiveness.
In recent years, certain aspects of competitive strategies, as well as internationalization and adaptation to the conditions of international competition of the domestic insurance market, are contained in the scientific works of A.P. Arkhipova, Yu.T. Akhvlediani, S.A. Bannikova, V.V. Vladimirova, V.B. Go-melly E.S. Grebenshchikova, S.G. Zhuravina, P.V. Zhuravlev, A.N. Zubtsa, E.I. Ivashkina, E.V. Kolomina, SV. Lapshina, A. Yu. Laikova, I.B. Kotlobovsky, SI. Rybakov, V.I. Ryabikin, P.A. Samieva, Yu.A. Spletukhova, M. M. Sukhorukova; K.I. Tretyakov, K.E. Turbina, A.A. Tsyganov. However, they describe and systematize such aspects as the competitiveness of insurance organizations, insurance services and products, given incompletely or not presented at all. Competitive development strategies of insurance organizations have not been systematically studied in any of the sources mentioned by us, taking into account the existing trends in the domestic insurance market. We emphasize that monographs on this problem have not yet been published. Thus, the relevance of the development of scientific research in the field of competition in the insurance market remains.
Research object are the competitive processes in the insurance market, as well as methods of regulating the competitive environment in the modern economy.
The subject of research act economic relations arising between the subjects of the insurance market in the process of their interaction regarding the sale of insurance products, as well as the development of competitive strategies for the development of insurance operators.
Purpose of the study consists in the theoretical substantiation of aspects of the competitive environment in the insurance market for the development of methodological recommendations that allow the formation and use of competitive strategies in insurance organizations.
In accordance with the set goal, the following tasks were solved in the dissertation:
determine the conditions that form a competitive environment in the insurance market, highlighting its specific features in comparison with product markets;
identify signs of the competitiveness of an insurance company, develop their typology;
spend comparative analysis the competitiveness of insurance products and services, taking into account the specifics that exist in their development and promotion in the insurance market;
to summarize data on the existing competitive strategies of insurance organizations and develop their classification, taking into account the factors of international competition and reorganization of the domestic insurance market;
to study the parameters of the development of branch networks in the insurance market in order to identify criteria for classifying them as the competitive advantages of an insurance operator;
Theoretical and methodological foundations dissertation. The theoretical basis of the research was the works of domestic and foreign economists on the problems of insurance, the development of financial markets, competition, general and strategic management, and the theory of services. When substantiating and developing the provisions of the dissertation, the results of analytical research and reviews published in periodicals, official legal, methodological and instructional materials of state federal and regional structures of legislative and executive power, international insurance organizations, materials of self-regulatory organizations, rating analytical agencies were used. Widely used financial statements Russian insurance companies, the results of ratings of domestic and international insurance organizations.
The methodological basis of the study was formed by the dialectical method of cognition, organizational and systems approaches... The dialectical method is implemented using such general scientific methods and techniques as scientific abstraction, deduction, induction, analysis and synthesis, methods of grouping and comparison, the method of analogy. The dissertation used logical and graphic methods, system analysis, classification, comparison, grouping, rating method.
The empirical basis of the study was: legislative acts of the Russian Federation, advisory materials, guidelines various insurance associations, the Russian Union of Industrialists and Entrepreneurs, the All-Russian Union of Insurers;
methodological, statistical and analytical materials of the Ministry of Finance of the Russian Federation, the Federal Service for Insurance Supervision;
publications in professional economic Russian and foreign periodicals.
Scientific novelty of research is as follows:
the specific conditions of the competitive environment in the Russian insurance market in comparison with the commodity markets are revealed and market forces that determine it (the power of consumers, infrastructure, the state, competitors, potential competitors) have been substantiated;
the provision has been proven that if an insurance company is on the insurance market, it has competitive advantages;
a typology of competitive advantages of an insurance company has been developed for a number of features that are dependent on: their application in various markets, the stage of development of the company, the demand of stakeholders and the functional specialization of the insurance operator;
the essence of competitive strategies used in the insurance market has been theoretically substantiated: the strategy of a universal product line, the strategy of universality of the product line within the industry specialization, the strategy of survival in the conditions of permanent reorganization of the insurance market, the strategy of specialization on a limited product line for corporate clients; specific niche strategy;
substantiated the criteria according to which regional distribution networks become a competitive advantage of an insurance organization (comparative costs for their maintenance, positive dynamics of collected insurance premiums, connection with programs economic development region);
a system of indicators has been developed for a new rating of insurance operators, reflecting the quality of insurance services provided (payment
insurance claims and sums insured on time and in amounts corresponding to insurance contracts).
The practical significance of the research results is that:
a typology of competitive advantages of an insurance organization has been developed;
the system of properties of an insurance product concentrated in its core and mantle, influencing its competitive advantages, has been revealed;
an IPO scheme was developed for an insurance company in order to determine capitalization parameters as one of the competitive advantages;
offered typological properties of the insurance market rehabilitation based on its competitive advantages;
summarized the results of forecasts of the impact of international competition on the domestic insurance market.
The practical significance of the dissertation research is also determined by the possibility of using the results obtained:
self-regulatory professional organizations and consulting, audit companies in the development of competitive advantages of insurance organizations and their competitive strategies;
Federal Service for Insurance Supervision and Federal antimonopoly service Russia in the development of regulations on monitoring the competitive environment in the insurance market;
domestic insurance organizations in solving the problems of building a competitive one, adequate to modern and strategic challenges
management systems, competitive strategies focused on business value growth.
Approbation of work. The main results of the dissertation were reflected in eight publications of the author with a total volume of 6.5 pp. and reports at scientific and practical conferences. The ideas and conclusions of the dissertation were used by a number of Russian insurance companies in the development of corporate strategy, restructuring of the financial service, implementation modern methods and technologies financial management... Experimental verification of ideas and practical developments was carried out in the insurance company "YUGORIA", the All-Russian Union of Insurers, Yugorsk state university... The results of the dissertation research were reported by the author at the International scientific and practical conference"Economy of the XXI century: globalization, crises, development" (Russian Economic Academy named after G.V. Plekhanov, December 2008), the International Scientific and Practical Conference of Young Scientists at Yaroslavl State University (YarSU, December 2007).
Logic and structure of research. The logic of the research determines the structure of the work, consisting of an introduction, three chapters, a conclusion, a list of used literature. The thesis is presented on 175 pages, contains 8 tables, 18 figures and 2 appendices. The list of used literature includes 164 titles.
Main characteristics and conditions for ensuring a competitive environment in the insurance market
By the competitive environment, we mean the so-called external environment of the insurance organization, in which it exists, realizing business transactions and fulfilling its mission of producing and promoting insurance products to consumers. V general outline the elemental composition of the external environment is described in sufficient detail in the special insurance literature. In particular Shakhov V.V. separates in it managed and unmanaged components. The former include: market demand, competition, insurance know-how and insurer infrastructure. The second group includes: the state-political environment, the socio-ethical environment and the conjuncture of the world insurance market1. Competition is highlighted by V.V. Shakhov as an independent element of the external environment of the insurer. This position is not objectionable, since as a phenomenon economic life competition is always present in the market. However, as observations show, for its legitimate and organized existence, some efforts are always required, both on the part of the state and on the part of each of its participants. It is no coincidence that competition is classified as a manageable component of the external environment of an insurance organization. This emphasizes that not only competition can influence it, but the organization itself can influence competition. Being an independent economic phenomenon, competition at the same time can stratify and disintegrate into separate processes, facts and characteristics that can be observed in related economic processes and facts of economic life.
The research task of identifying the main characteristics and conditions for ensuring a competitive environment in the insurance market combines several areas. First, it is necessary to trace the process of the formation of a competitive environment and determine how large the gap is between real competition and conventional models that describe its various manifestations in the market. Secondly, it is required to highlight new trends that indicate the development of competition and a competitive environment in the insurance economy in connection with the changing business environment. And, finally, it is necessary to identify inconsistencies in terminological approaches to the description of already existing competitive phenomena with those that science still uses in its methodology. Each of these directions in this work is formulated in the form of working hypotheses, refuting or confirming which, you can get the final scientific result.
We consider the following thesis as a key working hypothesis: there is still no unambiguous opinion about what type of competitive market the modern Russian insurance market belongs to. Our task is to determine its characteristics, in accordance with which it would be possible to further determine its competitive type.
The solution to this problem involves the use of the analogy method, with the help of which it would be possible to adapt the basic theoretical generalizations and principles operating in relation to commodity markets to the insurance market.
Key areas of competitive strategy
In the previous section of our work, we described one of the stages of development of an insurance company, when it turns into a business process organization. At this stage, disparate functional processes with the help of regulations begin to take shape into a kind of technology, within the framework of which they continue to form and ultimately realize competitive advantages. Regulations higher order is a strategic plan, and strategic planning is at the forefront of all business processes. Thus, in order to ensure the competitiveness of the organization and its products and services in the market, its management is forced to use strategies that provide competitive advantages. In the research objectives of this work, we included the identification of the types of competitive strategies that may be present in the insurance market.
The strategy breaks down into a variety of competitive actions and approaches to business, on which the successful management of the firm depends. In a general sense, a strategy is a management plan for a firm aimed at strengthening its position, satisfying customers and achieving its goals. Managers develop strategies to determine which direction the company will take and make informed decisions when choosing a course of action. The choice of a specific strategy by managers means that out of all possible paths of development and methods of action that open up to the company, it has been decided to choose one direction in which it will develop.
There are two diametrically opposed approaches to defining competitive strategy. The first is that strategy answers the basic question of what the company wants to be years (and sometimes decades) later. Another approach is to plan a competitive strategy based on tactics. The first approach was called “top-down thinking”, the second - “bottom-up” 1 The author of the second approach considers it revolutionary due to the fact that, in his opinion, you are committing one of two major business sins: 1) refusing to accept failure, and 2) not wanting to exploit success. This is called top-down thinking. " J. Trout himself defines strategy not as a goal, but as a specific marketing direction, which, once defined, must remain unchanged.
Competition based on the capitalization of an insurance organization
An increase in capitalization, as a condition for the development of competitive advantages, manifests itself in the ability to:
Provide the economy with long-term capital, in contrast to insurance reserves, which are mostly short and medium-term in Russian insurance companies. Though investment portfolio the insurance company is secondary to insurance portfolio, insurance companies should not view investment policy as a "derivative" form of their activities. Based on experience developed countries, it can be argued that the need for the implementation of an active investment policy the insurer is due to the fact that its own insurance operations are low-profit, and often unprofitable, and, as a result, the ability to increase the insurers' own funds lies in the implementation of an effective investment policy. So, in the USA in 1994, for 1 US dollar of the received insurance premium, an insurance indemnity was paid in the amount of 18.6, i.e. losses were mainly covered by the results of investment activities1;
Perform on a par with banks and non-banking credit institutions the guarantor (issuer of guarantee obligations) under the laws of many countries, including Russia (Article 368 of the Civil Code of the Russian Federation);
Increase your competitiveness, using the increasing financial opportunities for the development and implementation of new technologies, products, tariffs;
Provide an increase in the welfare of the company's owners, the main source of which is the growth of equity capital The part of the capital consumed in the current period leaves its composition, the accumulated part is designed to meet the needs of capital owners in the long term and is not excluded from the category of capital resources.
Thus, management of insurance companies should be carried out by managers from the standpoint of their capitalization growth.
In the world, including Russian practice, there are the following approaches to increasing own funds insurance company:
growth of retained earnings;
mergers and acquisitions;
attraction of external investments through an IPO, additional contributions of shareholders' own funds.
The advantage of the method of increasing equity capital through net retained earnings, not paid to shareholders as dividends, consists in the independence of funds from open market and thereby eliminating the cost of raising resources, as well as the threat of losing control by existing shareholders .. However, the internal source of raising capital is not able to maintain capitalization at the required level, this forces an increasing number of insurance companies to use external sources of capital.
Competition is inherent component developed insurance market. In this regard, there is an urgent need to study competition, its level and intensity, in the knowledge of the forces and market opportunities of the most powerful competitors, the prospects for competition in the selected insurance markets.
The first stage in the analysis of competition in the insurance market is the study of the main factors that determine the intensity of competition. These factors include:
- - number and comparable capacity of competing insurance companies;
- - change in the volume of demand for insurance services and its structural and cost dynamics;
- - barriers to penetration into the insurance market (especially licensing of insurance activities);
- - the situation in the adjacent credit market;
- - differences in the strategies of competing insurers;
- - special motives for competition in this insurance market.
The number of competing insurance companies and their comparative capacity determine the level of competition to the greatest extent.
All other things being equal, the intensity of competition is greatest when a significant number of insurance companies of approximately equal strength are fighting in the insurance market. To collect this information, they resort to compiling special dossiers. Based on the results obtained, conclusions are drawn about the level of competition.
At the second stage of the analysis of the level of competition, the main insurance companies-competitors are identified and their role in the total sale of insurance services is considered. Data on this category of competitors are summarized in a single table in a certain form.
It is customary to distinguish between price and non-price competition of insurers. The price competition is based on the tariff rate at which it is proposed to conclude an insurance contract of this type. Reducing the tariff rate has always been the basis with which the insurer, highlighting its insurance services from the general list, attracted the attention of a potential insured to them.
V modern world when the insurance markets of industrialized countries are mainly divided among a number of large insurance companies, the use of price competition in the fight for the insured looks problematic. Price competition is used mainly by outsider insurers in their fight against giants of the insurance business, for which outsiders do not have the strength and ability to compete with them in the field of non-price competition.
Non-price competition brings to the fore the additional services of insurers to their clients (preemptive right to purchase shares of an insurance company, assistance in purchasing real estate, free legal advice, etc.). Advertising has always been the strongest instrument of non-price competition, but today its role has grown many times over. With the help of advertising, insurance companies in industrialized countries strive to create a prestigious image of their company in the eyes of policyholders.
Traditional in this policy is holding "business development days". On this day, breakfast (lunch or dinner) is held, during which the president of the insurance company communicates with 100-200 high-ranking clients.
Illegal methods of non-price competition include know-how espionage, enticement of specialists who know the professional secrets of organizing the insurance business, and forgery of insurance certificates.
Allocate economic and organizational parameters that characterize the competitiveness of the insurer.
The economic parameters include the costs of personnel training, commissions of insurance agents, taxation of income from insurance activities, etc.
Organizational parameters are made by a system of discounts and benefits for policyholders according to the terms and conditions of concluded insurance contracts.
Ideally, the economic and organizational parameters of the insurer's competitiveness should be focused on taking into account the needs of all potential clients of the insurer.
Insurance is a powerful factor that has a positive impact on the economy. With the help of insurance, the entrepreneur gets the opportunity to focus all his attention on the problems of the market and competition, while being confident that the means of production and objects of labor are financially protected from any accidents.
Personal insurance provides protection against risks that threaten a person's life, his ability to work, and health. Insurance is a strategic sector of the economy, dynamic development which requires an appropriate level of economic thinking and the availability of highly qualified personnel.
COURSE WORK
«
Development of competition in the insurance market "
| CONTENT | |
| Introduction | 3 |
| 1 Theoretical and methodological foundations of the study of competition in Russian insurance companies | 5 |
| 1.1 The concept and essence of the competitiveness of insurance companies | 5 |
| 1.2 Methodology for analyzing the financial situation of Russian insurers | 9 |
| 2 Analysis of competition in the insurance market | 13 |
| 2.1 The state of competition in the insurance market | 13 |
| 2.2 Analysis of the main factors determining the intensity of competition among insurance companies | 16 |
| 3 Prospects for the development of competition among insurance companies | 21 |
| 3.1 Ways to improve the competitiveness of insurance | 21 |
| 3.2 Forecast of the insurance market development | 25 |
| Conclusion | 29 |
| List of sources and literature used | 31 |
| Appendix A "Impact of the crisis on the sales organization" | 33 |
| Appendix B "Factors of competition in the insurance market" | 34 |
| Appendix C "Scheme for collecting and processing information about competing insurance companies" | 37 |
INTRODUCTION
Insurance is one of the most important components of the country's financial system in providing protection property interests the state and its citizens.
The work of both Russian scientists and economists and foreign ones is devoted to the study of the problems of assessing the competitiveness of insurance companies.
For example, A. Marshal's theory of equilibrium of the firm and the industry and the theory of factors of production in the aspect of insurance companies are devoted to the research of competitiveness. Also known is the model of M. Porter, in which each company operating in the market is subjected to pressure from five competitive forces:
- competition in the industry;
- the threat of the arrival of new competitors;
- threat of replacement of goods or services;
- dependence on consumers;
- dependence on suppliers.
J.J. Lamben believes that one of the most important issues in the analysis of a firm's competitiveness is the reaction of competitors. one
At the same time, a number of topical problems related to the competitiveness of Russian insurance companies remain insufficiently studied. In particular, there is a need to clarify the place and role of the insurance industry in increasing the competitiveness of the Russian economy, to analyze the increase in the competitiveness of the insurance industry based on attracting foreign investment. Not enough attention was paid to a comprehensive analysis of the factors of increasing the competitiveness of the domestic insurance industry, the system of indicators of its competitiveness.
Thus, the relevance of the research topic is due to the need to identify the main factors of increasing the competitiveness of insurance companies, analyze these factors, study the main directions and mechanisms of the insurance market development, improve the national competitive environment and innovative strategies of insurance companies.
The aim of the course work is to form a model for increasing the competitiveness of Russian insurance companies.
To achieve this goal, the following tasks are set in the work:
- from a theoretical standpoint, consider the essence of competitiveness in relation to insurance companies;
- to determine the set of factors that determine the competitiveness of insurance companies;
- to develop proposals to improve the competitiveness of the activities of Russian insurance companies;
The subject of this research is a complex of theoretical and methodological aspects of the competitiveness of Russian insurance companies.
The object of research in the work is the activities of insurance companies that form the domestic insurance industry.
The study used regulatory documents, statistical data from the All-Russian Union of Insurers (VSS), and the Federal Insurance Supervision Service (FSSN), materials of scientific and practical conferences, seminars, specialized reviews prepared by various professional associations and news agencies.
1 THEORETICAL AND METHODOLOGICAL BASIS OF RESEARCHING THE COMPETITION OF RUSSIAN INSURANCE COMPANIES
1.1 The concept and essence of the competitiveness of insurance companies
Insurance is a relationship to protect the property interests of individuals and legal entities in the event of certain events (insured events) at the expense of monetary funds formed from the insurance premiums (insurance premiums) paid by them (Article 2 of the Law of the Russian Federation "On the organization of insurance business in the Russian Federation" ).
There are many definitions of the concepts of competition and competitiveness. The word competition originated from the Latin "concurrere", which means to collide.
Competition is an integral part of a developed insurance market. A real market economy is inconceivable without competition. In this regard, there is an urgent need to study competition, its level and intensity, to know the forces and market opportunities of the most powerful competitors, the prospects for competition in the insurance markets. The presence of competitors forces each insurer to be extremely attentive to the requests of its clients.
The main fundamental feature of the organization of the insurance business in the modern period (in contrast to the Soviet period) is its demonopolization and the development of competition among insurance organizations. Along with state insurance, private insurance has emerged and is developing. Competition usually refers to voluntary insurance.
Competition encourages insurance organizations to develop and introduce new types of insurance, constantly improve them, expand the range and cover additional segments of the insurance market. When carrying out the same types of insurance, competition between insurance organizations is expressed in the creation of convenient forms for concluding an agreement and paying insurance premiums, reducing tariff rates, promptness of payment of insurance compensation and insurance coverage.
Competition in all areas is the main condition for the transition to market economy... At the same time, insurance is a special type of activity designed to provide insurance protection for individuals and legal entities. Therefore, it is important to organize insurance in such a way that insurance companies do not go bankrupt, do not stop their activities. This is achieved by special methods of state regulation of insurance activities, as well as by a clear development of legal and economic foundations insurance.
Insurance rivalry inherent in competition cannot be viewed as an absolute category. In many cases, especially when accepting large risks for insurance, the cooperation of insurers is necessary. This cooperation is carried out in the form of co-insurance and reinsurance. An important principle of organizing insurance as part of international economic relations is international cooperation in the field of insurance, which is caused by an objective necessity in the context of deepening and expanding world economic relations.
It is customary to distinguish between price and non-price competition of insurers. The price competition is based on the tariff rate at which it is proposed to conclude an insurance contract of this type. Reducing the tariff rate has always been the basis with which the insurer, highlighting its insurance services from the general list, attracted the attention of a potential insured to them. In the modern world, when the insurance markets of industrialized countries are mainly divided between a number of large insurance companies, the use of price competition in the fight for the policyholder looks problematic. Price competition is used mainly by outsider insurers in their fight against giants of the insurance business, for which outsiders do not have the strength and ability to compete with them in the field of non-price competition.
Non-price competition brings to the fore the additional services of insurers to their clients (preemptive right to purchase shares of an insurance company, assistance in purchasing real estate, free legal advice, etc.). Advertising has always been the strongest instrument of non-price competition, but today its role has grown many times over. With the help of advertising, insurance companies in industrialized countries strive to create a prestigious image of their company in the eyes of policyholders. Traditional in this policy is holding "business development days". On this day, breakfast (lunch or dinner) is held, during which the president of the insurance company communicates with 100-200 clients. The focus is primarily on government, institutional and corporate clientele. Clients are told about new types of services offered by the insurance company, about plans for the further development and participation of the insurance company in the public life of the region. Clients are asked about their opinion about the image of the insurance company, attitude to the range and quality of offered insurance services. The same goals are served by periodically held conferences, in which the leading managers of the insurer, as well as certain groups of policyholders, participate. Conferences differ from “business development days” in that they are held on a specific topic. At the end of such events, a souvenir advertisement with the insurer's branding is presented. Thanks to this approach, insurance companies are actively developing new methods of promoting insurance services on the market. Illegal methods of non-price competition include know-how espionage, enticement of specialists who know the professional secrets of organizing the insurance business, and forgery of insurance certificates. 2
In our country, great attention is paid to the suppression of monopolistic activities and unfair competition in the insurance market. The prevention, restriction and suppression of monopolistic activities and unfair competition in the insurance market is provided by the State Committee of the Russian Federation for Antimonopoly Policy and Support for New Economic Structures in accordance with the antimonopoly legislation of the Russian Federation. These issues are also under the jurisdiction of the Department of Insurance Supervision of the Ministry of Finance of the Russian Federation.
The competitiveness of the insurer - the ability to sell insurance products (through the conclusioninsurance contractsof a certain type) in this insurance market, based on the availableinsurance interestsidentified by the marketing service insurer.
The insurance industry, as part of the financial infrastructure of the market, plays an important role in acquiring national competitive advantages. To strengthen the infrastructure and increase its efficiency, along with other institutions of the national infrastructure, it is necessary to develop the insurance institution, to increase the competitiveness of Russian insurance companies.
Allocate economic and organizational parameters that characterize the competitiveness of the insurer. The economic parameters include the costs of personnel training, commissions for insurance agents, taxation of income from insurance activities, etc. The organizational parameters are a system of discounts and benefits for policyholders on the terms and conditions of concluded insurance contracts. Ideally, the economic and organizational parameters of the insurer's competitiveness should be focused on taking into account the needs of all potential clients of the insurer. 3
1.2 Methodology for analyzing the financial situation of Russian insurers
The rating assessment of existing insurers and reinsurers is of great importance for the development of the insurance market. The methodology for analyzing the financial situation of insurance companies makes it possible to identify the most important quantitative parameters of insurers' activities, their strengths and weaknesses, ways of solving emerging problems, which is relevant for everyone Russian companies... The analysis of various aspects of the financial performance of companies is considered as the first step towards determining the rating.
Analysis of the financial results of insurance operations of Russian companies involves comparison with indicators recognized in world practice as optimal or acceptable. For some coefficients in foreign practice, there is not a firmly fixed expression, but their change in dynamics, the limits of changes in the direction of increase or decrease. Accordingly, comparison of Russian indicators with them is possible as information accumulates over a number of years. It should also be borne in mind that the indicators typical for the world market for Russian insurance companies can still be regarded as benchmarks, but not as standards.
The methodology can provide for the analysis of the general results of companies' activities and separately the results without life insurance. Comparison of such general and specific results is of significant interest, more clearly showing the consequences of diversification of insurance operations for the financial position of insurers.
When developing a methodology, one of the most important issues concerns the choice of the composition of indicators that characterize the various results of insurance operations. Of course, the wider the set of indicators, the more reliable and reasonable the conclusion about the financial position of the insurance company. At the same time, it is the multiplicity of unequal indicators that can complicate the practical use of the methodology. It's all about who it is addressed to. Of course, the insurers themselves are interested in a detailed analysis of the results of their activities. But the attention of policyholders (current and future), shareholders and founders of the company should be focused on the key indicators that characterize the financial stability of the insurance company.
Orientation to the internal and external use of the analysis results determines the allocation of two groups of estimated indicators - basic and additional. The first group is the main final indicators that characterize the most important results of the financial activity of the insurer. They are important to policyholders and shareholders of the insurance company. The second group includes indicators that reveal the constituent factors of the final activity or identify other significant aspects of the work of insurance companies.
The main indicators (coefficients) may include: solvency ratios, income ratios and cost ratios.
Solvency ratios characterize the potential use of the insurance company's equity capital to cover its obligations and include indicators:
- the ratio of the equity capital of the insurance company to the standard (minimum) size of free assets;
- the ratio of equity capital to the actual size of free assets;
- the ratio of equity capital to insurance reserves (minus the share of reinsurers) and other liabilities.
Income ratios allow you to determine the main sources of their growth and include indicators:
- an increase in the insurance premium;
- the ratio of profit (before income tax) or loss to equity;
- the ratio of return on investment to invested assets.
The third group of basic coefficients (cost coefficients) characterizes the level of the main expenses of insurance companies:
- the level of unprofitableness, taking into account reinsurance;
- the ratio of the cost of doing business to the insurance premium;
- the insurer's own retention (the ratio of the net premium to the total premium received).
As additional coefficients, indicators such as, for example, the ratio of equity capital to insurance reserves (minus the share of reinsurers) can be taken; the ratio of invested assets to total assets, etc.
The financial analysis carried out on the basis of the described methodology shows that many Russian insurance companies are characterized by low liquidity of assets, unprofitableness below the permissible level. At the same time, the cost of doing business (transaction costs) is significantly higher than the world average.
Analysis of the financial position of insurance companies, based on their official reporting, can serve as the basis for the formation of the so-called remote rating. The final stage of determining the rating should be an assessment of the management policy and human resources of the insurance company, the structure of peripheral branches (departments) and the effectiveness of their interaction with the headquarters. It is necessary to consider the general policy of the insurance company, the procedure for developing a business plan and monitoring the progress of its implementation, the mechanism for collecting, processing and evaluating insurance information. This requires a thorough analysis of the work directly in the insurance company. Obviously, such a step can be taken by companies with good results of financial analysis. Only they can count on a positive rating.
Taking into account the results of the analysis of the financial situation, as well as the incomparability of many characteristics of activities according to Russian and international standards, it is legitimate to raise the question of two ratings of Russian insurers - national and international. Such a compilation of the two ratings would reflect the persisting specifics of the development of Russian insurance companies, to which the established criteria of the world market cannot be fully applied. 4
2 ANALYSIS OF COMPETITION IN THE INSURANCE SERVICES MARKET
2.1 The state of competition in the insurance market
Today, Russian insurance can be fully considered a mature and full-fledged element of the market infrastructure, resistant to possible temporary economic difficulties and having the potential for further growth.
For most types of insurance, on average, about half of the premiums are provided by a dozen leading companies in the corresponding segment.
Based on the results of 2009. the leader of the Russian insurance market in terms of the total amount of insurance premiums is the Rosgosstrakh system. Ingosstrakh ranks second, followed by such companies as SOGAZ, RESO - Garantia, ROSNO, MSK, etc.
In addition, within the framework of the study, the rating agency "Expert RA" identified the leaders of decline and growth in the insurance market in various aspects.
Fall leaders:
- by type of company: captive companies;
- by type of insurance: auto hull insurance (-13.2 billion rubles), voluntary medical insurance (-4.0 billion rubles), insurance against accidents and diseases (-3.2 billion rubles), cargo insurance ( -2.1 billion rubles).
- by geography: regional market.
Growth leaders:
- by type of company: large universal insurers of the federal level;
- by type of insurance: insurance of aviation risks, DSAGO, construction and installation work and OSAGO;
- by geography: Moscow market 5
As of the end of 1995, there were 2,745 insurance organizations in the insurance market; by now, their number has decreased by 3.37 times; the number of insurance brokers at its peak was over 1.3 thousand, by now it has decreased by almost 10.5 times.
The reduction in the number of insurance organizations was a consequence of the persistent excess of the number of revoked licenses over the number issued since 1996. At the same time, among the reasons for revoking licenses are not only violations of insurance legislation, but also the voluntary refusal of the insurer from insurance activities or some of its types, including as a result joining another insurance company. One way or another, the client portfolio of liquidated insurers is transferred to their larger competitors, with rare exceptions, not in the order of its organized transfer while maintaining existing obligations, but by concluding a new contract. 6
The outgoing crisis affects the solvency of regular and potential clients of insurance companies. Either financial problems appear, or spending priorities change in the face of declining income. Insurance for many can become that budget item, from which expenses can be painlessly abandoned until better times. The impact of the crisis on the organization of sales is presented in Appendix A.
Policyholders - legal to experience the consequences of the crisis from different sides: the credit instrument disappears to increase turnover and increase profits, the demand for manufactured goods and services is falling. These and other facts are forcing companies to optimize costs, including reducing social packages for personnel (VHI, NS, etc.).
In other segments of corporate insurance, similar contraction trends are emerging: due to the liquidity crisis, permanent corporate policyholders stop paying insurance premium and either stop insuring, or choose more budgetary options.
The squeeze in corporate insurance is similar in impact to the collapse of credit insurance. In addition, the growing competition for the best sellers on the market can be noted. The response should be a high-quality audit of the motivation system for the best sellers, as well as the processes of interaction with them. To retain the best sellers and attract them, you need to create a system in which it will be most profitable and convenient for them to work in your insurance company. In the face of tough competition for a shrinking customer segment, there is a need to increase the aggressiveness of insurance sales, which should also result in the creation of a staff of proactive sellers, the best on the market. 7
So far, despite all the efforts of insurers, the overwhelming majority of individuals are still not interested in insurance services. Neither marketing moves nor dumping help, and even the introduction of new types of compulsory insurance could not increase the overall attractiveness of insurance as such. And today, insurance companies are looking for at least an opportunity to distinguish themselves from others, to attract the attention of potential customers.
In any case, in the current conditions, the insurance company must go beyond the framework of a universal organization.
Unfortunately, things don't go further than one-time and simple marketing moves. As a result, the policyholder finds himself face to face with the problem of choosing an insurance company. However, when choosing an insurance company by private individuals, one of the main criteria is still the size of the company.
2.2 Analysis of the main factors determining the intensity of competition among insurance companies
The main stage in the analysis of competition in the insurance market is to assess the degree of market exposure to competition processes based on the analysis of the main factors that determine the intensity of competition.
Since the competitive environment is formed not only under the influence of the struggle of intra-industry competitors, the following groups of factors are taken into account to analyze competition in the market in accordance with M. Porter's model:
rivalry among operators competing in this market ("central ring") - the situation in the industry;
competition from substitute services - the impact of substitute services;
the threat of the emergence of new competitors - the influence of potential competitors;
positions of consumers, their economic opportunities - the influence of buyers.
Each of the considered forces of competition can have a different impact on the situation in the industry, both in direction and in importance, and their total impact ultimately determines the characteristics of competition in the industry, the profitability of the industry, the place of the company in the market and its success. eight
The main factors that determine the level of competition in the industry, combined into groups, as well as signs of their manifestation are presented in Appendix B.
Thus, it becomes possible to assess the significance of factors according to the degree of manifestation of their signs in the insurance market and to draw a conclusion about the general level of competition in this market.
Let us analyze the nature of the influencing factors included in the "situation in the industry" group. Now we will consider the theoretical basis for further analysis of the level of competition in the Russian insurance market.
The number and strength of insurance firms competing in the market determine the level of competition to the greatest extent.
The presence on the market of a large number of competing insurance companies with a high degree of diversification of services testifies to the impossibility of moving into a "niche", that is, leaving the competition through specialization in some kind of insurance services. Thus, a high degree of unification of insurance services in the industry tends to reduce competition in the market under study.
Changes in effective demand in the market enhances or weakens the effect of the first two factors. Indeed, an increase in volume softens, and a decrease, on the contrary, sharpens competition in the market. 9
Barriers to market penetration are closely related to the previous factor and act in exactly the opposite direction, that is, an increase in barriers helps to reduce competition and vice versa. This is due to the need for significant investments, the need to acquire special knowledge and qualifications, etc. The higher the differentiation by types of insurance product and other factors, the higher the penetration barriers. In this case, existing insurance companies have an advantage over newly emerging competitors due to their prestige and experience.
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