Title: Shapenko L
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Company: Reanimator Extreme Edition

Shapenko L.O. Self-regulatory organizations of insurers as participants of public administration

The author of the article by analyzing the characteristics of self-regulatory organizations of insurers determined basic principles of their establishment and operation, as well as the legal nature of interaction of regulatory agencies and non-governmental organizations on development of the domestic insurance market.
During this scientific research it was found that there is discrepancy of self-organizing nature of insurance to the organizational state of its support, and it was suggested to create and make the appropriate rules in the sphere of implementation of self-regulatory processes in the insurance area. As at the present stage of development of market mechanisms it is possible to discuss just about cooperation of insurance organizations with the state regulator (National committee of financial services), and not about self-regulation of the insurance market because in law the question of organization and activities of self-regulatory organizations of insurers is unresolved, and the state regulator did not set specific authority, which these organizations get as participants of public administration.
An actual question about the development of insurance business in Ukraine is the modernization of the insurance market, but the state cannot make it by its own in short terms, that is why it is obligatory to make it with participants of the market in the form of self-regulatory organizations of insurers. And to ensure the effective development of the institution of self-regulation it is needed to go through evolution and begin the cleaning process of the insurance market of «formal" insurance companies, while leaving only those companies that deal with real insurance. Till this moment to talk about the creation of self-regulatory organizations of insurers is impossible because nowadays the most of insurance companies are not ready to become members of self-regulatory organizations on the conditions of commitment.
The results of the study indicate the need for adoption of the Law of Ukraine "On self-regulatory organizations" and on its basis the relevant legal document about self-regulation in the sphere of an insurance market, which can consolidate functions and authority of the self-regulatory organizations of insurers, determine the principles of activities, conditions of creation and liquidation, the procedure to get a status of a self-regulatory organization, the procedure to delegate authority to supervise for fair competition to self-regulatory organizations of insurers, the procedure for creation by a self-regulatory organization of insurers rules of self-regulation and grounds of responsibility in case of violation of rules and standards of activities. These regulations will be a strong argument for development of the insurance market, and also will have such positive results as: to create conditions for balancing the interests of professional participants in the insurance market; strengthening the role of the community in the management of insurance business; reducing of corruption; promote openness and transparency of the insurance market; reducing the use of budget public funds; increase of the quality of the democratic development of Ukraine as the legal and market-oriented state.
Keywords: self-regulatory organizations, self-regulatory organizations of insurers, insurance, an insurance market, participants of public administration.