Principles of Insurance in the Russian Federation

The main feature of the fundamental organization of insurance business in the modern period (in contrast to the Soviet era) is its monopolization and the development of competitive insurance companies. In the process of transition to market relations, public insurance (in the sense of insurance companies owned by the state) has practically disappeared from the insurance market. The vast number of insurance companies operating in Russia, is privately owned.

The competition operates not only in the field of voluntary insurance, but also in the field of compulsory insurance (such as between insurers engaged in CTP, between health insurance organizations engaged in compulsory health insurance). The competition encourages insurance companies to develop and introduce new types of insurance, they constantly improve, expand the range and reach additional segments of the insurance market. In carrying out the same kinds of insurance competition between insurance companies is reflected in the creation of suitable forms of contract execution and payment of insurance premiums, reducing tariff rates, timeliness of payment of insurance compensation and insurance coverage. In addition, it stimulates the improvement of the models themselves insurance - in recent years begun to develop a model of direct insurance, the essence of which consists in the rejection of the mediators.

Competition in all areas - the main condition for the transition to a market economy. However, the insurance - a special kind of activities designed to provide insurance protection to individuals and legal entities. It is therefore important to organize the insurance that insurance companies are not ruined, did not cease their activities. This is achieved by special methods of state regulation of insurance activities, as well as the development of a clear legal and economic basis of insurance. Hence the second principle - the need for state regulation of insurance activities, based on a strong legal and economic foundation.

Competition in the insurance, the inherent competition can not be regarded as an absolute category. In many cases, especially when taking large risks insurance, requires the cooperation of insurers. This cooperation takes the form of coinsurance and reinsurance. An important principle of organization of insurance as part of international economic relations, international cooperation is in the insurance industry, which is caused by an objective necessity in terms of deepening and expanding economic ties. Thus, the cooperation of insurance companies both domestically and abroad is also an important principle of organization of insurance business.