Investment Activity of Insurers and the State Economic Growth

Gulnara Kaigorodova, Daria Alyakina, Guzel Pyrkova and Alfiya Mustafina

Montenegrin Journal of Economics, 2018, vol. 14, issue 4, 109-123

Abstract: The purpose of the article is to summarize theoretical positions and practical experience regarding the existence of the relationship between the investment activity of insurers and the economic growth of the state and identify the factors that have the greatest impact on the volume of insurance investments. As a hypothesis, the main factors influencing the level of investment of insurers in the economy are recognized: the profit of economic entities, investment in fixed assets, the rate of change in the volume of insurance premiums, the total authorized capital of insurers, GDP. Methods of correlation-regression analysis, extrapolation and modeling were used. The subject of the study were the peculiarities and patterns of the formation, use and regulation of the investment potential of Russianinsurance companies in in modern economic conditions. In the course ofconducted researcha number of publications on the issues of the relationship between the investment activity of insurers and the economic growth of the state were worked out, investment potential of the insurance market of Russia was studied, the size of real investments by insurers in the economy was determined, and the forecast of future trends in changes in their volumes was made. It is proved that between the volumes of insurance premiums, investments of enterprises in fixed assets, GDP and assets placed by the insurers in the real sector there is a high interdependence that allowed to determine the important role of insurers as participants of the insurance market for the economic growth of the state. The conclusion is made that, with a steady decline in the number of insurers, their aggregate capital increases, as well as growing insurance reserves. However, their insufficient part is invested in the real sector of the economy, and a significant amount of resources falls on investments with zero profitability of operations.

Date: 2018
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