Features of small and medium-sized business insurance development in Ukraine

Abstract

The study examines the development of small and medium-sized business insurance in Ukraine, highlighting its role in ensuring the financial stability of enterprises and minimizing risks. The relevance of the research is justified by the need to improve insurance mechanisms in the context of economic instability, wartime challenges, and the insufficient coverage of entrepreneurs with insurance services.

The purpose of the study is to analyze the factors determining the development of the small and medium-sized business insurance market in Ukraine, identify key problems, and substantiate directions for improving insurance mechanisms. The research employs methods of system analysis, statistical generalization, structural-functional analysis, and comparative study, which enabled the assessment of insurance market trends and the identification of key barriers to entrepreneurs’ access to insurance services.

The results reveal that the main problems in small business insurance include the high cost of insurance policies, the complexity of claims settlement procedures, low trust levels in insurers, and the insufficient adaptation of insurance products to real business needs. It has been proven that the limited digitalization of the insurance market, underdeveloped reinsurance mechanisms, and the lack of state incentives hinder entrepreneurs’ access to insurance coverage.

The necessity of expanding state support for small business insurance through partial premium compensation and the creation of guarantee funds has been substantiated. It is proposed to stimulate the development of reinsurance to reduce the financial burden on insurers and implement automated digital platforms to simplify policy issuance and claims settlement processes. It has been proven that enhancing market transparency through independent oversight of insurance companies and the introduction of open databases on payout levels will contribute to building trust in insurance services among entrepreneurs.

The prospects for further research include analyzing international experience in small business insurance, developing adaptive insurance programs for high-risk sectors, and assessing the impact of digital technologies on insurance processes.