OPTIMIZATION AND PROSPECTS FOR THE DEVELOPMENT OF INSURANCE IN THE TOURISM BUSINESS IN THE CONTEXT OF THE PANDEMIC

Abstract

The purpose is the current state of tourism in Ukraine and the need to find alternative positive methods and tools to prevent the bankruptcy of the subjects of tourist activity. On the basis of a study of the peculiarities and risks of the subjects of tourist activity, which have increased in the conditions of the COVID-19 pandemic, recommendations for implementation in the practice of insurance as a method of preventing bankruptcy have been developed. Comprehensive insurance protection of business entities in the tourism industry should be carried out by combining insurance in such areas as: insurance against interruption of tourist activity (compensation for losses from business interruption for reasons beyond the control of the tourist operator, including those associated with COVID-19 and restrictive measures on tourism), civil and professional liability insurance of tour operators, travel agents, property and personnel insurance, as well as cyber insurance hiding. Methodology. The issue of insurance provision of the tourism industry in a pandemic requires a comprehensive and systematic approach. Modern realities require it to raise social standards of protection of the population in general and tourists in particular. Achieving risk minimization in tourism is possible only with the establishment of active cooperation between the state authorities, travel companies and insurance companies. Results. Insurance in tourism can be considered as a system of financial and economic relations between insurance companies, subjects of tourist activity and tourists on the satisfaction of the interests and needs of each of them. In the tourism business, the risk of adverse events and their negative consequences is particularly significant. Sometimes it is difficult to predict the presence of adverse factors or events for the well-being of tourists. Additional difficulties are associated with the participation and interaction of a large number of independent business partners (tour operators, consular services, hotels, transport companies, etc.) Thus, the probability of occurrence of insurance claims has substantial grounds. Value/originality. Analyzed the current state, threats and prospects of the situation in the insurance market in Ukraine. Various factors and objective circumstances influence the development of global and, in turn, national markets of insurance services. The priority of development of national and world economy in recent years is globalization of financial institutions. The substantial basis of integration and globalization processes is the movement of capital. The insurance market, as an integral part of the country's financial market, is primarily influenced by globalization processes. This market reacts almost instantly to the dynamic processes in the world economic environment and reflects the main trends reflecting the formation of the modern insurance space. The pandemic crisis differs from the previous ones in that the freedom of movement was considerably restricted. The aim of the study is to identify the most necessary adaptive and transformational changes in Ukraine, taking into account the factors caused by the pandemic. Today the domestic insurance market is experiencing many negative challenges. The question of what consequences are inevitable after the end of the quarantine and how they will affect the participants of the insurance market remains less relevant. The external and internal factors affecting the functioning of the insurance market of Ukraine have been considered. It is established that due to objectively direct consequences the number of insurance companies will decrease. It is established that in Ukraine insurance companies offer health insurance programs that provide financial support in case of COVID-19 diseases, as well as improve already existing insurance programs. Legislative changes that have occurred in Ukraine in the sphere of insurance in connection with the pandemic coronavirus are analyzed. It is established that the state implements measures aimed at protection and support of the population in the event of a pandemic. Existing and potential threats have been determined, the opportunities that will allow insurance companies to maintain and strengthen their positions in the insurance market have been identified.