Oliynik Anna,

postgraduate
Department of Insurance and Risk Management
Economic faculty
Kyiv National Taras Shevchenko University

 

Implementation of complex bank insurance in Ukraine

In a world of globalization and integration of economic processes, and significantly increased competition in all areas of trade is becoming increasingly tougher battle for customers among monetary institutions. Today one of the most important competitive advantages of financial intermediation is the presence of insurance coverage. And the greater the range of insured risks, the more trust causes a financial institution.

Bankers Blanket Bond - is the foundation of complex program of crime insurance and professional liability of financial institutions. This program is mandatory for many Western countries and includes protection of property interests of the bank associated with the possession, use and disposal of property and funds belonging to or held by a banking institution [1].

Comprehensive insurance of bank crimes (BBB) ​​has been adapted to reflect local laws for use in many countries. This process could not touch the CIS. In Europe and U.S. Bank will not be the case if it does not have coverage under the program BBB. Among national banks policies of comprehensive bank insurance purchased only one.

This program has several distinctive features (Fig. 1.).

 

 

 

 

 

 

Скругленный прямоугольник: Banker’s Blanket Bond
 

 

 

 

 

 

 

 

 

 

 

 

 


Figure 1. * Key elements and benefits of policy Banker's Blanket Bond

* Source: developed by the author.

The insurance company that insures bank carries risks quite careful monitoring of the banking institution. This comprehensive inspection cannot be compared to the usual audit because it carried out by a specialized Agent - surveyors, and affects all areas of banking: storage and transportation of money and other valuables, bank security system, the accuracy of documents, personal characteristics of the bank employees and others. As a result of the inspection, the insurance company decides how much insurance coverage can be provided by the bank. In most cases, the bank risks insured by several insurance companies (insurers' pool), which allows them to reduce potential losses when the insured event become [2].

Responding to new challenges, domestic insurance companies to includes range of services integrated banking insurance policy BBB. One of the first to propose this type of insurance to financial institutions, was the insurance company "ASKA". This product is not in great demand in the market because the financial risk insurance is not included in the mandatory (according to the Law of Ukraine "On Insurance"). Moreover, the bank will need to have quite an extensive review, and later still pay premium insurance company, which in some cases may be quite high.

And even if the banking institution able and willing to buy Bankers Blanket Bond, same insurance company (domestic) may be an unreliable partner. Ukrainian insurance market is very young. Therefore, on the one hand, there is a considerable lack of experience, investment, highly qualified staff, on the other hand there is great potential and great prospects of the insurance market of Ukraine.

 

Used sources:
1. Site about banking insurance / / [electronic resource]. - Mode of access: http://bancassurance.com.ua/review/300
2. Bancassurance in Russia and abroad. / Analytical INVESTIGATION / Under editors VN Demchenko / / Journal "Russky POLIS" - Moscow - 2004. - S.136.