FORMALIZATION OF INSURANCE COMPANIES’ DEPENDENCE FROM BANKS IN UKRAINE IN THE CONTEXT OF THEIR INTEGRATION

Abstract

Purpose: to develop a scientific approach in order to formalize the insurance companies' dependence from the banks in Ukraine in the context of increasing integration processes between these financial intermediaries. Discussion: the author suggests using correlation-regression and autoregressive analyses to formalize this dependence and to identify the lag between the phases of oscillations in development of banking and insurance segments in Ukraine. Results: the results of the correlation-regression and autoregression analyzes have shown that the expansion phases in the oscillations of the insurance and banking segments are the same, and there is a lag between the phases of recession equal to nine months. This allows insurance companies and regulatory agencies to predict negative effects caused by the banking system destabilization, as well as to implement effective anti-crisis measures in time (for example, the reorientation of the insurance companies sales policy on the basis of multi-channel approach).