The brokers institute as development alternative of regional structures of the insurance companies

“Who buys superfluous, eventually, sells necessary” [1]
(Benjamin Franklin).

The analysis shows, those CIS insurance companies make the greater accent on the direct sales channel, increasing staff of the sales department through created representations and branches in regions. It is a so-called extensive way, which has shown a deadlock way by all historical experience of development of the states USSR. Why is so occurs? Here to us to see four reasons: historical, legislative, economic and methodological.

A. Historical. In the beginning 90 years, when the insurance market in Ukraine of the beginnings to develop, only NJSC “Oranta” by right of succession had the advanced regional network covering all areas of Ukraine and even all areas of Kiev. Such structure was historically necessary in epoch of exclusive possession of all USSR insurance market by the unique company "Gosstrakh". The institute of the intermediaries also was submitted only by regular agents of this company. About development of the independent intermediaries it was out of the question. But in process of Ukraine insurance market development other companies under the requirements of the shareholders began to decide a task of business expansion by a way by creation of the regional structures and representations by analogy with “Oranta”. Especially it concerned the insurance companies connected to related banks.

B.  Legislative. This reason is connected to the requirements of our regulator about development of regional networks of the insurance companies. The given situation became especially obvious at a stage of introduction of obligatory insurance of a civil liability of the owners of vehicles (OICL). As is known, insurer could not receive the license for this kind of obligatory insurance without presence of the advanced regional network.
C.   Economic. These reasons were reflected, first of all, in the requirements of local authorities. They enabled to receive business only to those companies, which were registered in their regions and the taxes in local bodies paid, and did not want to work with representations of the companies.

D.   Methodological. Last reason is generation first three. It already became basic paradigm of all insurance market, which began to be propagandized in press. I shall bring only one example. "As the practice testifies, not all insurers are ready to growth of the insurance market requiring opening of a plenty of branches". And so, it is no less then - "opening of a plenty of branches ".
In what it has resulted? Insurer have ceased to be engaged peculiar in them to functions, and steel simply distributor of the products, in which structure the sellers began to dominate and to make up to 80 % from an aggregate number of the company personnel. So, the insurance market develops on inertia, without consideration the laws of the market attitudes and saved experience of other countries. In result the basic part of branches and representations in regions became simply unprofitable. With it all chiefs of the insurance companies will agree. Especially it was aggravated after acceptance of the law about OICL.
I shall allow reminding the basic tasks inherent in the insurance company, from which its structure follows also. So, insurance company it:

- The manager of insurance fund. This main task for what it serves and receives the license;
- The expert in marketing, the studying market and assisting to develop a number of insurance products, required to it;
- Underwriter, estimating concrete risks;
- Actuary, developing tariff policy on kinds of insurance and adjusting them on results of the past period of insurance;
- The manager owning the advanced methods of management collectives;
- The expert in IT-technologies. Insurance industry hardly can brag of introduction of modern information systems of the account, accumulation and processing of the information in all business processes. From here it is impossibility to operate operatively and effectively.

So, the modern insurance company of western type is compact division of the professionals. The insurance company develops insurance products and gives back on outsourcing process of sale to the professional sellers: to the insurance agents and brokers.
As it is visible from the given table, the basic channels of sales of insurance products are the intermediaries: the agents and brokers. Only they can develop insurance business in regions of Ukraine.