Insurance in the Modern Economy

Abstract

Traditionally, insurance is seen as a means of protection against financial losses caused by certain unforeseeable situations. At the same time, insurance is an important component of a country's financial system and an active participant in the financial market. The insurance market has developed intensively in recent years and has become an important financial instrument. The specific feature of insurance is that it not only offers protection and psychological comfort to policyholders, but also saves financial resources and increases investment opportunities overall. Insurance therefore offers real opportunities for capital growth not only for insurance companies but also for policyholders, especially in the case of life insurance. This approach served as a premise for the research. Thus, the aim of the paper is to analyze and present the role of insurance in the modern economy. In the process of research, such methods as analysis, induction and synthesis were used. CZU: 368.025.73(478); JEL: A13, B41, C40, D01, D70, E20, G22