Insurance News

Insurance fund is the main attribute of insurance medicine. It is formed due to obligatory deductions of wages working, deductions of employers’ profit, state grants and welfare funds.
Hospital cash departments
The previous Minister of Health of Ukraine has come out with the assumption, that 2-3 years will be required for introduction of insurance medicine in Ukraine.
Figures
It is planned, that in a year 15,573 billion UAH will be spent on maintenance of medical insurance.
In Ukraine already the first experiences of application of insurance medicine appear. Hospital cash departments may be considered as one of its prototypes. They quite successfully work in many cities of Ukraine. But it is the form of voluntary medical insurance. If to speak about obligatory medical insurance, it is worth of mentioning that talks on its necessity have started already in the beginning of 1990 - so long before occurrence of 49-th clause of the Constitution, Ukraine guaranteeing to all citizens free-of-charge health services. In 2002 the first bill about the state social medical insurance has appeared. Later six more bills, offering to enter obligatory medical insurance, have been submitted. But all of them have remained just projects. Next, these days already the eighth bill On obligatory state social medical insurance has been registered. On the basis of Fund of social insurance on time loss of working capacity the project offers to carry out services of obligatory medical insurance. Introduction of an innovation is planned for January, 1st, 2009.
Expenses for rendering of medical services will be guaranteed by the employer (4,2 % from fund of a payment) and local enforcement authorities, and clients will pay insurance payments regarding a covering of expenses for material maintenance and social services of the Fund.

What is insurance medicine?
Treatment, even in the developed countries, is quite expensive and not everyone can pay for it. In order to make it more accessible institute of insurance medicine has been created.
The insurance medicine is a form of public health services organization, which provides obligatory state insurance upon illnesses in combination to private medical practice and private medical institutions. Such system of the organization of medicine allows putting a payment of medical staff and incomes of medical establishments in direct dependence on quality of treatment and diagnostics. And thus, from the financial point of view, reception of qualitative medical aid is accessible to the majority of citizens.
The insurance medicine means medical insurance which, in turn, can be obligatory or voluntary. The world practice confirms that a basis of insurance medicine is obligatory medical insurance. Its purpose is to guarantee reception of medical service due to the saved up means in the insurance case.

Rate of growth of the Ukrainian insurance market of will make 20-25 % and by 2010 will make nearby $2 billion, developing basically due to corporate insurance, which share in total amount of premiums will increase.
According to research backlog of the Ukrainian economic development from Russian makes about 3-4 years. But, tendencies of economy development are identical. The lead analysis has shown a number of factors, which define development of economy, the main role in which is played by the formed youth - in Ukraine and Russia this share makes about 23 %.
Development of insurance business in Russia is defined by consumer behavior of the population - ability to offer the consumer necessary service under the comprehensible prices and includes a number of stages. On a way of purchase of insurance service the insurant all over again should be frightened, then understand, that insurance service is necessary to it, the insurer should be reliable, and cost of insurance should be economically proved. Having passed these stages, the insurant becomes the happy owner of insurance policy.
The structure of insured risks of the population has not changed in 2006-2007 among which there is a risk of road accident, fire and a robbery of habitation. But, on the other hand, researches show, that within 2006 sensitivity risks among the population has noticeably decreased and it is connected with information policy of TV and mass-media which began to give less attention to violence. For the majority of people insurance becomes the basic tool of protection against every possible risk and the number of those people, who consider insurance as waste of money, decreases. So, comprehension of threat leads the consumer of necessity of a choice of means of protection and consumers will prefer insurance to other ways of protection only in case of the positive attitude to service.
The unique essential factor of growth of the market is updating motor-vehicle pools of the population and the enterprises.
The insurance companies have all some opportunities to affect consumer behavior. Elasticity of demand for service depending on its cost is the most essential factor. Within 2004-2007 interrogations of the population have revealed following interrelation - 50 % difference between quantity of the consumers knowing the insurance company and using its services, leads to that within a year the client base of the insurer increases approximately for 25 %. Besides, researches show that satisfaction of consumers with service in the insurance company can attract additional clients.

The president of Association of insurers of Armenia has complained to journalists that consular services of some the countries of the Europe subject to discrimination measures of the Armenian insurers.
He has named embassies of Germany, France and in some cases of Italy as an example.
According to his words, since last January some clients of the insurance companies of Armenia have started to address to insurers at whom they have got policies from accidents and sharp diseases. They complain that embassies of the Schengen zone refuse to recognize the validity of policies and require get policies of the foreign companies for reception of the entry visa.
According to the president of the Association, similar requirements have not only material, but sound mental cruelty, undermining the development of the insurance market of Armenia.
Recognizing some lacks of work of the national insurance market, president of the Association has told about new contacts between insurers of Armenia and the European countries.
President of the Association has declared that the new practice of non-recognition of policies of the Armenian insurance companies by consular services of the countries of the Schengen zone is included into the full contradiction both with the purposes of development of economy of Armenia, and with the current legislation of Armenia. In particular, as the chapter of association has noted, the Law on insurance and the Civil Code of Armenia forbid sale of policies of the foreign states and those not licensed organizations, which sell them today to these embassies, actually fall under action of the Criminal code.

Aon Corp’s experts believe that this year the companies, rendered services of insurance to airlines, will suffer losses for the first time since 2000. Agency Bloomberg shows the data of the monthly report of the company and proves that the sum of insurance claims will make not less than $1,53 billion in 2007 in comparison with premiums at the rate of $1,46 billion. Last year insurers have collected premiums for the sum of $1,69 billion, in 2005 - $2,04 billion.
Reduction of premiums is caused, in particular, by falling of the prices because of competition increase. As the head of a department of aerospace insurance Aon marks, the aviation branch is still much safer, than was ten years ago, that has led to essential reduction of premiums in January-September of this year. Aon takes the second place on size in the world among insurance brokers (after Marsh McLennan Cos.), and it is engaged in management of risks and consulting.
 

British tourist insurance company InsureandGo has entered new service - a covering of the charges connected with terrorism consequences. Here medical charges, indemnification for loss of personal things and delays of transport in case of act of terrorism are included. It is the new and unique offer in the market of tourist services of the country. Necessity of a similar step has ripened after acts of terrorism in London, Egypt and to Bali.
Insurance companies have criticized that they did not provide the reimbursement in case of act of terrorism: insurers refused to compensate the charges suffered by tourists or to return money in case of canceling the trip. As the representatives of company InsureandGo have noted, the terrorism, unfortunately, became an integral part of people. Some companies exclude acts of terrorism from the insurance cases, but InsureandGo will get rid of it and make these cases a part of their services. As it has become known, other companies also deliberate above indemnification at least the medical charges suffered by victims of acts of terrorism.