FEATURES OF PRICING OF INSURANCE PRODUCTS IN THE SYSTEM OF LONG-TERM INSURANCE

Abstract

Іnsurance is a financial guarantor that compensates for the loss that occurs as a result of unforeseen events. At the same time, insurance companies are an important branch of the financial sector of the economy in terms of their capacity and the amount of capital concentrated in them. In this case, one of the key features of insurance companies is the process of pricing insurance products offered to customers of the insurer. Features of pricing in the process of selling insurance products for long-term accounting involves the use of special methods of calculating the price of insurance protection, which manifests itself in the form of complex principles of determining the insurance rate. The significant specificity of the insurance premium, which is paid under long-term contracts is that it is not fully consumed by the insurance company, as the price of any other product or service, and is divided into earned and unearned parts. And to ensure the process of providing insurance services, the unearned part of the price of insurance products for a long time falls into the mathematical reserve and the total amount of such reserves in the structure of liabilities of all insurers is quite significant. The article considers modern features of pricing for insurance products in the long-term insurance system. In this case, the most important elements that determine the specific price of insurance coverage in the structure of its cost is the net tariff, on the basis of which the insurance premium is determined as the specific price of the insurance product. However, since the pricing of insurance products is based on determining the present value of the insurer's liabilities, it is proposed to use a similar approach in the process of pricing insurance products. Since long-term insurance is based on life insurance, the order of pricing of insurance products for life insurance is of particular importance. In this case, insurance premiums, which will be the price of the insurance product, will also be paid for life, which will lead to a general transformation of the concept of price in the case of purchase of these policies.