INSTITUTE OF MILITARY RISKS INSURANCE: IMPLEMENTATION OF NORMS OF INTERNATIONAL LEGISLATION


Keywords: aggression, occupation, the hybrid war, the insurance institute, military risk insurance, insurance market.

Abstract

Topicality. In almost all historical eras there have been attempts to reduce the misery caused by armed conflicts. The armed aggression of the Russian Federation against Ukraine, which began with the occupation of Crimea in February-March 2014, the hybrid war in Donbas since April 2014, and the open full-scale armed invasion on February 24, 2022, is not an exception, and is accompanied by an unprecedented destruction of the Ukrainian civilian population, including children, the destruction of Ukrainian cities, cultural and spiritual values forces the leadership of the country and ordinary people, in search of international protection, justice and punishment of the aggressor, to appeal to the norms of international law, regarding the search for compensation mechanisms for damages caused by using the possibilities of the insurance institute.
Acquaintance with the foreign experience of conducting international insurance business will allow to form the prerequisites for the implementation of Ukraine's strategic course for integration into the global economic space. After all, the functioning of the insurance market of Ukraine in conditions of strengthening globalization and integration processes, trends of capital concentration in the financial sector of the economy determines the need to improve the methodical support of the functioning of the risk management system in insurance companies, taking into account world experience and military aggression from the Russian Federation.
Aim and tasks. The purpose of the article is to contribute to the formation of fundamental knowledge regarding the peculiarities of conducting international insurance business and the functioning of the military risk insurance institute, its problems and modern trends, organizational-legal and financial-economic bases of activity and peculiarities of the implementation of international types of insurance and reinsurance for financing military risks, international experience of using financial instruments, forms of interaction between the insurance market and the capital market, the foundations of banking and insurance groups as institutions of the international insurance market.
Research results. The implementation of the norms of international law covers various spheres of activity, starting from the adoption of legislative measures and ending with practical issues, for example, the implementation of certain methods and means of compensation for damages.
The War Insurance Institute traces its origins to World War I legislation that created the agency to supplement the inadequate war insurance then available in the commercial insurance market. This agency, the Bureau of War Risk Insurance, had the authority to insure American vessels, freight, cargo, and crew against loss or damage caused by the risks of war. This agency was later abolished and its merchant shipping functions were taken over by the Maritime Administration, Department of Commerce.
Risk is a concept that is universal in everyday use. It is simply an expression of the potential of a certain action to result in a certain loss. Risk is a combination of the probability of an event and its consequences. awareness of the consequences of various actions or events is clearly necessary to make informed decisions about public safety. If the core of a nuclear reactor melts down, there will be a massive release of radioactivity. Even if it were contained to a nuclear plant, the public trauma would cause pressure to shut down the nuclear industry, as happened in Japan. This key paradigm, which has been highlighted in the risk literature for more than half a century, shows that awareness of the probability of an adverse event should also be important to decision makers.
War risk insurance is an insurance policy that provides financial protection to the policyholder against losses due to events such as invasions, insurrections, riots, strikes, revolutions, military coups and terrorism.
Conclusion. The possibilities of insurance companies are also limited in the context of compensation for losses from hostilities. The Government of Ukraine should work on this complex issue. Carry out work on the assessment of losses that have already been caused or may be caused in the future in order to have grounds for bringing the aggressor to justice. The Russian Federation must pay. Also, the mechanism needs to attract international assistance to create a Fund from which compensation will be paid. The creation of such a Fund guarantees the coverage of losses of vehicles - wagons, planes, barges, etc.
The Institute of Military Risk Insurance needs to focus on the following conclusions: military risk insurance is the coverage of losses arising from such events as war, invasion, insurrection, riots, strikes and terrorism; military risk insurance is offered as a separate policy, as it is excluded from standard insurance policies due to high risks; companies operating in high-risk countries are good candidates for military risk insurance; military risk insurance is often excluded from standard policies due to the inability of insurance companies to accurately predict losses and, therefore, charge appropriate premiums.

Author Biography

O. ZAIETS

candidate of legal sciences, associate professor,
Researcher Department of development integration of science, education and business
State Institution "Institute Of Market And Economic&Ecological Research
of the National Academy of Sciences of Ukraine"

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© 2022 The Author(s). Published by IMPEER. This is an Open Access article under the CC BY 4.0 license.
Published
2022-09-20
How to Cite
ZAIETS, O. (2022). INSTITUTE OF MILITARY RISKS INSURANCE: IMPLEMENTATION OF NORMS OF INTERNATIONAL LEGISLATION. Economic Innovations, 24(3(84), 43-50. https://doi.org/https://doi.org/10.31520/ei.2022.24.3(84).43-50