PROSPECTS OF DEVELOPMENT OF INSURANCE MEDIATION IN UKRAINE

The purpose of the paper is to explore prospects for the development of insurance mediation in Ukraine in line with the key vectors of the dynamics of the insurance mediation institute in Europe. The objectives of the article are determined by the need to analyse: the new EU Directive No. 97, the provisions of the new draft Law of Ukraine “On Insurance”, and the mechanisms for introducing certification of insurance mediators in Ukraine. Methodology. General scientific and specific research methods were used for the present research. In particular, the method of synthesis and analysis was used in determining the modern approaches to addressing the key trends and prospects for the development of Ukrainian insurance mediation; comparative method was used for a comparative analysis of the specifics of the European and Ukrainian intermediary market; the method of ascending from abstract to specific was used when investigating the mechanisms of certification of insurance mediation. Results. The prospects of development of insurance mediation in Ukraine are investigated in the article. The new EU Directive No 97 and the ways of modernizing the national mediation for the latter are analysed. Mechanisms for improving the Ukrainian institute of mediation according to the European document are identified. The new draft Law of Ukraine “On Insurance” is studied taking into account the modern trends of the insurance mediation development. The necessity of adaptation of the drafted law according to demands of the new Directive is emphasized. The necessity of introduction of certification for insurance mediators is justified; the benefits of implementation of this process in practice are pointed out. Practical implications. The paper identifies the key practical issues and activities on an adaptation of Ukrainian legislation to the European regulation under the European integration processes. First of all, in the legislation of Ukraine, it is necessary to determine the individual distributors (insurance mediators) and the conditions of their registration. At the same time, the provisions on limiting the volume of insurance premiums, a list of insurance risks, regulation of insurance agents and insurance (reinsurance) brokers are the eligible issues for Ukraine nowadays. Notably, the development of mechanisms to control the efficiency, assessing the knowledge, professional training of insurance (reinsurance) mediators, and employees of insurance (reinsurance) companies is highly relevant for Ukraine. Under the condition of legislative consolidation in the insurance market of Ukraine, it is possible to establish a requirement for insurance (reinsurance) mediators, entities, for which the consignment of insurance products is not the main activity, to have an insurance policy of professional liability. Conditionally, the Code of Professional Ethics for Insurance Brokers, acting in Ukraine, is a response to the theses of the Directive on fair, just, professional actions, and their compliance with the client’s interests. The question remains open on regulating the following issues at the legislative level: remuneration of insurance distributors, requirements for the compulsory conclusion of a contract on providing consumers with information on the status of the seller of the insurance product, the type of its remuneration and cross-selling. Value/originality. The paper proves a highly relevant issue for Ukraine – the implementation of the registration process for all categories of insurance mediators and the keeping track on statistics of their activities. It will justify the process of adaptation of Ukrainian legislation to the EU standards. The research results prove the great significance of the adoption of the new Law of Ukraine “On Insurance”, which will allow the introduction of a new procedure for legislative regulation of insurance (reinsurance) mediation in the field of insurance; improve the system of legal support for the development of insurance mediation, its state regulation, monitoring the activities of insurers and insurance mediators. The analysis of the existing draft of the law justifies taking into account the basic recommendations of Directive 2009/138/EU of 2009 that is why it is necessary to align its provisions with the new Directive No. 97. The paper suggests that certification of insurance agents includes the establishment of the level of education, training, professional skills, knowledge, the experience of a professional to confirm compliance with standards, requirements as to the conduct of insurance actions. National certification conditions must be in line with EU laws. It is proved that introduction of certification of insurance agents: increases the authority of professionals in the insurance market, payment for their labour; promotes the development of the insurance market; certifies the professionalism of insurance mediators; raises trust; meets the requirements of international insurance markets and labour markets; allows assessing the quality of mediator training; provides quality services to the insured; protects against fraud by insurance mediators, insurers or insurers