Process of Demutualization of Mutual Insurance Societies and Insurance Cooperatives in the International Market of Insurance Services
Journal Title: Бізнес Інформ - Year 2014, Vol 11, Issue 0
Abstract
The article is aimed at identifying of general trends and factors that predetermine the process of demutualization, the study of transformation of the mutual and cooperative insurance organizations into the joint-stock structures and substantiating of future prospects for the development of non-commercial forms of insurance in the international markets of insurance services. Analysis of trends of development of the mutual insurance societies and insurance cooperatives creates background for stating, that an important topic for the above organizations is to find alternative sources of funding in order to maintain competitiveness and to increase their share in the market of insurance services in circumstances of the increasingly competitive and globalized market relations. This leads to demutualization, which is determined by the majority of scientists as a process of sharing, based on the change in ownership form of the non-profit societies as well as departure of the property from the control of the co-owners. While implementing new strategies, organizations operating on the principles of mutuality, are forced to adapt to market conditions through the establishment of new organizational and legal forms of insurance: joint-stock or mutual holding companies. One of the specific features of these structures is the attempt to derive advantages from the companies targeting investors, primarily in the sphere of attracting capital, while preserving the mutual or cooperative status. According to the analytical review of international insurance markets, most non-profit insurance organizations have managed to overcome the crisis of sharing. Dynamics and development trends of mutual insurance societies and insurance cooperatives witness their competitiveness in the market of insurance services, which allows to speak of the prospect for further development of the non-commercial forms of insurance. The possibilities of introducing them into the Ukrainian practice require further scientific research.
Authors and Affiliations
Igor Tymoshenko
Keywords
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