Financial provision of preventive measures in insurance

Preventive measures in insurance are interpreted as a set of measures related to reducing the degree of risk of the insurance object, and averting or decreasing the negative impact of possible insurance accidents on the insurance market participants. The implementation of the preventive function is based on the use of such tools as: payments to the purpose funds and reserves for preventive measures, targeted grants from the state budget, state subsidies and purpose assistance. On the Ukrainian insurance market these tools are not implemented and the problem needs to be discussed. In this study, we propose financial providing for preventive measures through a compulsory fund based on public-private partnership. Calculation of the annual contributions to such a public-private fund for preventive measures gives an estimated value of about 160 million hryvnias per year. It has also been offered that each insurer should create his own reserve of preventive measures or should contribute to the fund of insurance guarantees and preventive measures created on the level of insurers' associations in order to prevent loss events and to ensure the return of deposits to depositors of bankrupted insurance companies.