Insurance Market Regulation

This material defines the basic theoretical knowledge related to the problem of the insurance market. The first part generally characterizes the insurance market, its entities and the factors that influence it. The second part defines regulation and why it is needed in the insurance industry. It also deals with the basic objectives of regulation and the approaches by which regulation can be achieved. Within the insurance market there is a demand and supply of protection in insurance and reinsurance, and the subject is insurance and reinsurance, which can be considered a specific type of service. Here, the buyer receives his consideration only after the occurrence of the insured event, which may not occur at all. It is dominated by an indirect method of distribution of free financial resources concentrated in the aid reserves of the insurance intermediary. The price for brokerage in this area is insurance and reinsurance. Although the insurance market is part of the financial market, it is characterized by certain specificities, among which there is an excess of offers over demand, it is not concentrated in one place, but is a kind of network of insurance companies and insurance intermediaries . It is also subject to characteristic legalities such as the principle of solidarity, conditional irreversibility and non-equivalence.