FORMING OF STRUCTURED FINANCIAL PRODUCTS IN THE ACTIVITY OF INSURANCE COMPANIES

Uncertainty in the financial markets makes a lot of market participants increasingly use structured financial products. The article presents implementation of the structured financial products aimed at problem solving of an insurance company, and also tendencies of development and ways to improve insurance business. A structured financial product represents a complex financial product witch assumes combination of existing financial instruments and meets the requirements of investors on management and risk management, and also promotes the implementation of innovative transformation in financial markets. Implementation of structured financial products occurs through a specific mechanism of interaction between participants of various financial markets and becomes a financial service that has its own consumer price, can cause demand and supply. One can sell structured financial products as a service embodied in certain models of interaction between various market participants through exchange of financial instruments, debt liabilities, risks and cash assets among them. Insurance belongs to the oldest and most sustainable forms of financial and business life that throws back to the distant economic history of the human society. Objective need in insurance at any time was due to the fact that losses caused by sudden or accidental destructive factors, emergencies, facts of negligence could not always be recovered from a guilty person and let to the bankruptcy of the victim. Insurance business deals with specific economic relations between people within the process of manufacturing, distribution, exchange and consumption of material values. Insurance increases the investment potential of the country, facilitates grows of the national welfare, allows solving the problems of social support and pension provision.