What is the importance of car and health insurance?

Within the framework of market economic relations, sustainable economic development made it necessary to examine the modern insurance market and its characteristics.

The insurance market is essentially an abstract area where demand and supply occur, the purpose of buying and selling is insurance protection or a special socio-economic structure of money relations, where buyers and sellers (insurers and insured) meet. The current insurance market includes various structural parts that cover a complex and organic system. The main criterion that constitutes the core of the insurance market is the insurance company or insurance company.

Due to the existence of an insurance company, one or another economic relationship occurs, the process of formation and use of the insurance fund arises, personal and corporate interests are mixed. The insurance fund is a special structure for the implementation of insurance services and the signing of insurance contracts for an insurance company, a modern and improved form of public activity. The insurance company has a technical and organizational union. The economic specificity of a society manifests itself in the complete separation of all its resources and the free movement of these resources.

Insurance companies operate as independent economic assets in the economic system and establish relationships with other insurance companies through reinsurance and (or) co-insurance. The most important principle of the market economy is that the free play of supply and demand encourages the emergence of necessary insurance services for potential insurers.

Tariff rates, created in a free price environment, create real competitive conditions among insurance companies. In an economic competitive environment, the insurance market is regulatory. It should also be noted that ensuring competition in the insurance market cannot fully ensure a successful operation. These successes are influenced by the presence of employees who are constantly looking for new customers and always try to improve the methods and forms of insurance services. The development of the insurer's own insurance culture and close control over the company's internal and external activities are also important factors.

In a broad sense, the insurance market is the total economic relationship resulting from the purchase and sale of insurance products. The market environment establishes a continuous link between the insurer and the insured, confirming the suitability of the insurance service to the public. The law of value, including the law of supply and demand, creates important economic laws that ensure the functioning of the insurance market. As is known, in countries with developed economic development, regions with ten or more competitors are considered safer due to the degree of monopoly.