Insurance instruments in risk management of the manufacturing sector of a region: the case of the Republic of Khakassia (Russia)
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DOIhttp://dx.doi.org/10.21511/imfi.17(4).2020.26
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Article InfoVolume 17 2020, Issue #4, pp. 299-314
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Socio-economic development of a region is based on its production capacity. However, most regions in Russia are characterized by financial instability of local enterprises and the lack of a balanced structure of the regional economy. Insurance is an instrument of financial protection against risks, and its effective functioning is important for the development of the manufacturing sector, especially in depressed regions.
This paper aims to highlight the mechanisms for increasing the production capacity of a region and reducing business risks with the help of insurance instruments and to provide appropriate recommendations for the development of the insurance market. This is planned to be achieved on the basis of analysis and processing of existing scientific research in this field and statistical materials.
For this, a typology of regions was developed, which reflects the level of production in the region and is important in terms of developing the regional insurance market. This allows assessing the impact of insurance coverage in the region on the development of its production capacity. The proposed typology allows determining the causes of production inefficiency. The conformity of the development of the regional insurance market to the needs for insurance coverage of the production sector in the region was assessed. The identified imbalance between the provision of insurance coverage and the need for it allowed demonstrating an additional need for insurance, as well as working out a program for its development.
The obtained results are illustrated using the example of the Republic of Khakassia, a constituent entity of the Siberian Federal District of the Russian Federation. To implement risk management in the manufacturing sector, schemes of interaction between insurance market participants using commercial and non-commercial insurance are proposed.
Acknowledgment
The paper was written under the grant from the Russian Foundation for Basic Research – Development of a Methodology for Green and Infrastructure Investment by Institutional Investors in the Context of Pension Reforms.
- Keywords
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JEL Classification (Paper profile tab)G22, R11
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References51
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Tables2
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Figures8
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- Figure 1. GDP/GRP structure by value added in 2018, %
- Figure 2. The structure of the extractive industry by production volumes in 2018, %
- Figure 3. The structure of the manufacturing industry by production volumes in 2018, %
- Figure 4. Insurance premium structure of the Siberian Federal District by the constituent entities of the Russian Federation in 2018
- Figure 5. Insurance premium structure by constituent entities of the Siberian Federal District in 2018
- Figure 6. Distribution of insurance premiums by type of insurance in 2018
- Figure 7. Scheme of interaction between participants when creating a regional commercial insurance company
- Figure 8. Scheme of interaction between participants when creating a regional MIS
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- Table 1. Dynamics of the number of insurance companies
- Table 2. Distribution of insurance entities by federal district in 2018
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