Insurance and pension funds finance in the markets activity

Plan :

1. Insurance and insurance funds concept and importance .
2. Pension and pension funds concept , activity and importance .
3. Finance in the market insurance and pension funds .

The concept and importance of insurance and insurance funds .

Insurance – this physical and legal of individuals various kind from risks ( of property) loss , misfortune event , disease , natural disaster and others ) come outgoing damages cover for the purpose organization attainable economic relationship is a system .

Insurance in the process - insurer ( insurance company ) and insured ( between the customer ) contract The insured​ insurance The insurer pays the premium .​ and event face if yes , insurance payment done increases .

Insurance main functions

1. Protection​ to do function – damage seen person financial cover​

2. Fund​ function – many from customers assembled funds general in the fund to collect .

3. Repeat​ distribution function – many of the participants contributions at the expense of one how many damage to those who saw help to give

4. Prevention​ function – risks reduce according to measures financing .

5. Investment​ function – collected funds valuable papers and to projects redirection .

Today of the day the most active insurance​​ companies

Insurance fund – this insurance company by assembled insurance awards based on formable funds fund . He is an insurance event face when giving customer's damage cover and in the future financial stability provision for is used .

Insurance funds following sources at the expense of is formed :

• customers insurance awards
• from investments taken benefit
• again from insurance fallen income
• some in cases of the state additional funds ( emergency) cases ).

Insurance funds types

1. Centralized​ insurance funds – state on a scale is formed , large disasters and emergency situations for service The state​ or special government organ by is formed and control Financial​​ sources state budget funds , mandatory insurance contributions , some in cases international help from the funds organization finds . One of time in itself many insurance organizations for " backup " "source " function performs . Emergency situations , natural disasters or national on a scale large risks face when giving is used .

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2. Decentralized insurance funds – insurance of companies own customers in front of obligations to perform for is created . Special insurance company or organization within is formed . Funds from insurers assembled insurance contributions on account of Insurance​​ organization own customers in front of obligations to perform for It is used mainly for “ simple ” insurance . events cover for service does ( for example , a car) insurance , property insurance , health insurance ).

Pension and pension funds concept , activity and importance .

Pension – this citizen labor activity after finishing then ( age , health or other to the reasons according to ) state or special from funds regular accordingly can money Pension​​ population social protection provides , their old age during or to work unsuitable when main income source is considered .

Pension main types :

1. Labor pension – work internship and contributions based on is paid .
2. Social pension – work internship not been or enough not been to citizens state by is given .
3. Disability pension is paid to those who are unable to work due to health problems.
4. Old-age pension - granted to those who have reached the retirement age established by law.

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Pension fund – this citizens future pension supply financing for collapsible fund . Funds work giver and employee by payable mandatory pension contributions , as well as state budget funds at the expense of Pension is formed . funds funds not only pension to pay , maybe them to investment redirect also benefit through brings .

Sources of formation of pension funds :

1. Work of the providers mandatory deductions .
2. Employees pension contributions .
3. Government subsidies and transfers .
4. Pension funds from investments can income .
5. Pension funds main tasks

Pension funds types :

1. State pension fund – all citizens pension provision for state by is managed . ( In Uzbekistan – “ Pension Fund ”) State by organization is being and managed . Funds not only pensions , maybe various social benefits ( disability , survivor's) loss , temporary to work incompetence and etc. ) to pay is redirected . State guarantee under happened for citizens for safe source is considered . Uzbekistan Republic Finance ministry under From the budget outside Pension fund .

2. Non-governmental pension funds – private organizations by is made , additional pension savings opportunity gives . Private or public organizations by organization Citizens​​ optional accordingly participation will ( obligatory) not ). Funds citizens own contributions and , some in cases , work of the providers additional deductions at the expense of is formed . Funds various to investments ( bonds , shares , deposits ). To retirement on the way out or designated from the deadline after to the participants additional pension paid is given . For now non-governmental pension funds system development in the stage , but some banks and insurance companies optional pension programs offer For example , InFinBank , Kapitalbank , some​ insurance companies through additional pension savings opportunities there is .

Insurance and pension funds in the financial market .

Insurance companies and pension funds finance market important institutes is considered . Their main the task of the population funds collect , future obligations to perform for effective These institutions​ finance in the system capital distribution , risks management and stability provision task will do .

Role as a financial intermediary

Insurance companies from customers insurance collects awards ( premiums ) and them to investment For example , life​ insurance companies many annual contracts through big in size funds collects .

Pension funds and work giver and employee contributions collects , pension to age when it arrives to the customer payment done increases . Their difference that is : banks more short term deposits with works , pension funds and insurance and far term investments does .

Role as a financial intermediary

Pension funds usually funds for 20–30 years places , because citizens pension to age until it comes out this money Insurance is not available . companies are also far away term insurance contracts ( e.g. life​ insurance , pension insurance ) through big investment source They create . often state bonds , large corporate bonds , real estate property projects , reliable to the shares investment does .

Capital market stability provision

Pension funds and insurance companies of the market large and stable participants happened because of finance in the market permanent demand They provide​ mainly safe and low risk valuable on papers investment what did for capital in the market liquidity increases . For example : State to bonds their permanent investment state budget for reliable financing source gives .

Risks management and diversification

Insurance companies collected funds various to assets placing and taking risks distributes .

Pension funds are also investors future pension danger under not to put for diversification policy Through this​ they in the economy risks reducing institutes as works .

Finance in the market competition and efficiency

Insurance and pension funds to banks relatively far term finance sources presented Their​​ activity banks with together finance in the market competition increases , this and from resources effective to use help They also​​​ finance market deepens and develops .

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