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public figures make a significant contribution to building civil society in Uzbekistan11. In your main day-today work, women does work, the essence of which is eternal - save bestowed by God on human life, save human soul in the difficulties of life on earth. Modern women are able to reach the top in the profession, in art, in social activities, to create a welcoming and comfortable atmosphere in the family, to raise children. They have inconceivable secret all the time, to cope with the huge burden of care and remain tender, bright, charming. They bring in this world of good and a beauty, light and hope.
Literature
1. Ismailov N.U. Women's issue in Uzbekistan and the present // The young scientist. - 2014. - №1. -S. 226-228
2. Festive Greetings Women's day March-8, the President of the Republic of Uzbekistan / 2015 /, "the National word" March 5
3. M. Behbudi "Sadoi Turkistan" (1914, № 11)
4. R.A. Ubaydullaeva, N.H. Rakhimov article "Conditions and factors of improving the social status of Uzbekistan" The article was written based on the results of sociological study "Women in Uzbekistan -2013: social status and social well-being"
5. Ismailov N.U. Women's issue in Uzbekistan and the present // The young scientist. - 2014. - №1. -S. 226-228.
6. The Constitution of the Republic of Uzbekistan. Section 2, Part 5, Article
7. The Constitution of the Republic of Uzbekistan T.2014. part 2, Article 117
Constitutional Law of the Republic of Uzbekistan, Article 1 "On the next elections to the representative bodies of the government and the President of the Republic of Uzbekistan"
THE ROLE OF INSURANCE IN THE WORLD ECONOMY AND ITS EFFECT TO
MACROECONOMIC INDICATORS
Sh amshad A lizade
Email: [email protected] Chair of 'State Regulation of the Economy', The Academy of Public Administration under the President of the Republic of Azerbaijan
Abstract. The necessity of insurance in modern economy is unquestioned and has been recognized for centuries. Insurance is practically a necessity to business activity and enterprise. Insurance is considered one of the main parts of the service sector. For this reason its role in the world economy is considered very high. The insurance plays great role both in developed and developing countries' economy. Without insurance, the private service sector would be unable to function. In the other hand the effect of insurance to macroeconomic indicators is too high. Because insurance provides employment, increases GDP, and improves wealth of people. Otherwise insurance helps improving the stability of the financial system. For these reasons the importance of insurance in the world is very high.
Keywords Insurance, service sector, insurance market, insurance companies, macroeconomic indicators
1. Introduction
Insurance is one of the oldest field of the economy. The first activities like insurance appeared nearly 4000 years ago. Whether in the past periods or in modern period the main goal of insurance is protecting health and assets of the people. Insurance is main element in the operation of sophisticated national economies throughout the world today. Insurance stimulates business activities to operate in a cost-effective manner, by managing risks which associated with business activities are assumed by third parties. As we know risks and bad accidents can be happen always in life. These risks effect people badly every time. But insurance protect people from these risks. We can say that insurance is measure, which people take in advance to risks which can be happen every time.
Especially in modern period insurance succeed in economy. In developed countries such as Germany, England, Switzerland, France insurance became vital
part of the economy. In these countries people trust insurance, and for this reason they insure all assets in famous insurance companies. On the other hand insurance lets people and also businesses to protect themselves against certain potential losses and financial hardship at a reasonable acceptable rate. In modern period there are some insurance types which play great role in economy. For example people use motor insurance, property insurance, medical insurance, life insurance widely. These insurance types have great importance also in social life. Because when people use insurance types, it effects positively to their life style, social activity and also longevity.
Insurance market and also insurance companies play especially great role in economy. As we know insured people and insurance companies meet each other in the insurance market. The activities in insurance market which occur every day effect economic growth positively. Insurance activities also help increasing
11 Ismailov N.U. Women's issue in Uzbekistan and the present // The young scientist. - 2014. - №1. - S. 226-228.
country GDP. On the other side, insurance increases employment in economy. Improve economic and financial stability also one of the main advantages of insurance. For these reasons we can say that, insurance is reliable system of the economy.
2. The role of insurance in the world economy
Insurance is one of the main and important fields of the economy. The main aim of the insurance is to protect people from risks and from dangers. As we know in modern period there are too many accidents, bad events and unexpected dangers. These risks can happen every time in social life.
People always think about this problem, how to escape from these risks. For this reason insurance is considered the best tool for these problems. People use insurance to keep their assets and life under guarantee. So, insurance gained popularity in the world. Insurance plays great role both in developed and developing countries' economy. We can show the roles of insurance in world economy like that [8]:
1. Insurance provides safety and security: Insurance always provides financial support and decreases dangers in economic and social life. As we know there is always a fear of sudden loss. Insurance also provides a cover against any sudden loss. For example we can say that, in case of life insurance financial assistance guarantee to the family of the insured on his death [8]:
2. Insurance makes financial resources: As an
economic category insurance, which is part of the financial system, is the foundation and utilization process of the targeted finance funds established to eliminate the damage from the sudden accidents and emergency, to provide financial support to the citizens in the accidents connected with their private lives [2]. One of the main roles of insurance in economy is that, it generates financial resources by collecting insurance premiums. These funds are invested in government securities and stock. This process increases development economy of each country.
3. Insurance increases savings: One of the main roles of insurance is that, it encourages people's savings. We can show example life insurance to this process. Life insurance increases people's savings due to payment of regular premium and it provides regime of investment. It develops a habit of saving money by paying premium. So, insured get the lump sum amount at the maturity of the contract [8]. Thus life insurance encourages savings.
4. Insurance spreads risk: The insurance sector is susceptible to systemic risks generated in other parts of the financial sector. For most classes of insurance, however, there is little evidence of insurance either generating or amplifying systemic risk, within the financial system itself, or in the real economy [9]. Insurance always protect people from loss, from danger. Many people know that danger can occur every time. For this reason person, which wants to insure his property, pay some insurance premium to insurance company. So his property guaranteed by insurance company. Whenever a loss occurs, it is compensated out of funds of the insurer. With this process insurance spreads risk in life. In addition to eliminating risk for the individual
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through transfer, the insurance device reduces the aggregate amount of risk in the economy by substituting certain costs for uncertain losses [4].
5. Insurance gives medical support to society: Many companies insure their workers with medical insurance. A medical insurance considered essential in managing risk in health. Every worker can fall ill, or can victim of critical disease unexpectedly. For this reason medical insurance is one of the insurance policies that cater for different type of health risks. The insured gets a medical support in case of medical insurance policy. Medical insurance always protect people from illness, and company's workers also can get treatment with medical insurance. With giving medical support insurance plays great role in society.
3. The effect of insurance to macroeconomic indicators
Insurance is the equitable transfer of the risk of a loss, from one entity to another in exchange for payment. It is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss [12]. We can note that, insurance is an important element of modern economic relations. It includes financial relations which perform specific functions in economy [13]. In addition to playing great role in society insurance effects to macroeconomic indicators positively. So we can show effects of insurance to macroeconomic indicators like that.
1. Insurance provides increasing employment in economy: One of the main problems in economy is unemployment. Many countries suffer from this problem nowadays. The number of unemployed people is increasing in developing countries usually. But insurance system helps to solve this problem in economy. So, insurance companies provides increasing employment with hiring new workers. As we know, influential insurance companies such as AXA, Lloyds, Allianz, Aig have big branches in developed and developing countries. Many people from different countries work in these insurance companies. This process provides employment in economy.
2. Insurance provides increasing GDP: One of the main macroeconomic indicators of each country is GDP. A lot of macroeconomic indicators are usually considered as determinants of profitability. The development level of each country is measured with volume of GDP. In modern period insurance companies offer different insurance products to people. When people use these insurance products they pay insurance premiums to insurance companies. Insurance companies use these premiums in financial and investment activities of economy. So, this process increases GDP in economy.
3. Insurance effects to economic growth positively: The insurance sector plays an important role in the financial services industry, contributing to economic growth, efficient resource allocation, reduction of transaction costs, creation of liquidity, facilitation of economics of scale in investment, and spread of financial [1]. Insurance also helps to develop service, agriculture and industry sector of economy. It is known that, insurance provides employment in economy and it
provides increasing GDP. With these advantages insurance also effects economic growth positively.
4. Insurance effects stability of financial system positively: Insurance is one of the main fields of service sector. Insurance companies are primary part of financial system. Besides that, insurance companies play great role in forming state budget. Because they are big tax payers of the state. As we know the big part of the state budget is formed by taxes. For this reason, insurance sector plays great role in providing stability of tax and financial system.
5. Insurance effects to balance of payments positively: The importance of the insurance sector is growing due to increasing share of aggregate financial sector in almost every developing and developed country. Insurance include services of providing life insurance and annuities, nonlife insurance, reinsurance, freight insurance, pensions, standardized guarantees, and auxiliary services to insurance, pension schemes, and standardized guarantee schemes [7]. Insurance companies, together with mutual and pension funds, are one of the biggest institutional investors into stock, bond and real estate markets and their possible impact on the economic development will rather grow than decline due to issues such as ageing societies, widening income disparity and globalisation [5]. Insurance also effects to balance of payments of the country positively. For example when one insurance company insure large scale risk, this company transfers some part of risk to another insurance company. We call it reinsurance process. Reinsurance helps to insurance companies reduce risks and it also prevent appearing financial loss. Reinsurance also known as insurance for insurers or stop-loss insurance, is the practice of insurers transfering portions of risk protfolios to other parties by
Insurance share in world
some form of agreement to reduce the likelihood of having to pay a large obligation resulting from an insurance claim [10]. Reinsurance lets insurers cover their risks by recovering some or all of the amounts they pay to claimants. In reinsurance process insurer can transfer risk also to foreign insurance companies situated in other country. It effects cooperation of insurance companies and also countries. Besides that reinsurance effects trade operations of the country positively. With these factors we can say that, insurance provides increasing balance of payments of the country.
6. Insurance provides prosperity of people: Availability insurance in the world is the best advantage. Nowadays people from different countries can use different types of insurance. For example in modern period people use such as motor insurance, property insurance, life insurance, medical insurance, travel insurance. All these insurance types provides people's safety and security. Availability insurance in the world also provides people's guarantee. It effects their life style positively. It is known that, insurance increases savings of people. Especially we can say that life insurance effects positively to people's savings. When people use insurance their property, also their life is under guarantee. These good advantages provide prosperity of people.
These factors, which we have mentioned is the main effects of insurance to macroeconomic indicators. As we know, insurance is advantageous, as it facilitates economic growth by investing the premium funds, by protecting individuals, industry and commerce, community and nation from economic impact of losses, removing anxiety of losses and promotes investment [4]. We can see share of insurance in world macroeconomic indicators from table 1 [11].
Table 1.
macroeconomic indicators
Years 2010 2011 2012 2013 2014
Insurance share in GDP 2.4% 2.4% 2.5% 2.5% 2.6%
Insurance share in employment 3.1% 3.4% 3% 3.2% 4%
Insurance share in economic growth 2.4% 2.3% 1.5% 2.6% 2.4%
Insurance share in balance of payments 7% 7% 5.5% 6% 5%
As an economic category insurance, which is main part of the financial system, is the utilization process of the targeted finance funds established to eliminate the damage from the unpleasant accidents and emergency, to provide financial support to the citizens in the accidents connected with their private lives. We can see from table that, insurance have certain amount share in some macroeconomic indicators. With effecting to macroeconomic indicators insurance plays great role in world economy.
4. Conclusions
It is known that, the insurance sector is an important part of the financial sector with a substantial impact on the overall financial stability. Insurance, through the ages, has been used as a mechanism whereby the insurer organizes the process by which the unfortunate few, who suffer losses, share the burden with many who are exposed to risk of similar losses. Such burden would include the primary burden of direct losses like damage due to fire and indirect losses
like loss of production following such damage. It also includes secondary burden like physical and mental strain caused by anxiety of probable losses and the cost of maintaining reserves to mitigate such losses, if they occur [2].
Insurance have many advantages in economy. Because insurance protect people from danger, insurance guarantees people's life, property and also health. Insurance also saves companies from financial loss. In developed countries many people and many companies use insurance services. For this reason insurance considered main part of the service sector. But in developing countries insurance has not developed yet. Because problems such as misinformation of population about insurance, management deficiencies in insurance companies, distrust of people to insurance prevent insurance to develop in developing countries.
The insurance sector safeguards the assets of its policyholders by transferring risk from an individual or
business to an insurance company. Insurance companies act as financial intermediaries in that they invest the premiums they collect for providing this service [6]. There are some developed and popular insurance companies which operate with high quality nowadays. Aig, Axa, Lloyds, Allianz are famous insurance companies of the world. These insurance companies play an important role in the financial sector and the availability of insurance products is an essential element of sustainable economic growth. Many people from different countries use insurance products of these insurance companies. These companies also play a social role in society by sponsoring sporting events, educational programs and youth-orientated schemes.
In modern period people use life and non-life insurance products such as motor insurance, travel insurance, property insurance, medical insurance, life insurance. All life and non-life insurance types always save people property, life and health. All insurance types protect people from danger and loss. Insurance sector plays great role in increasing GDP. All premiums collecting by insurance companies effect economic development positively. Besides that insurance effects to balance of payments, financial stability positively and it also increases employment in economy. These factors also accelerate economic growth. For these reasons insurance role in world economy is undeniable, and it considered reliable field of service sector.
References
[1] Dorofti C., Jakubik P., Insurance Sector Profitability and macroeconomic environment, University of Prague, 2012, 71p.
[2] Gomelya V. B, 'The basics of insurance', p.6, Moscow, 2005
[2] Sankar S., Sharma M., Kaikini A., General insurance book, Insurance institute of India, 2014, 153 p.
[4] Vaughan E., Vaughan T., Fundamentals of risk and insurance, Wiley, 2007, 10th edition, 745p.
[5] Sumegi K.., Haiss P., The relationship of insurance and economic growth, a theorical and empirical analysis, ecomod conference, Hong Kong, 2006
[6] Wilkinson C., Insurance Handbook, Insurance information inistute, New York, 2010, 196 p.
[7] International trade statistics, WTO, 2015
[8]
http ://www.yourarticlelibrary.com/insurance/the -role-and-importance-of-insurance-explained/7540/
[9] http:// http://cgd.swissre.com/risk dialogue magazine/
[10]
http://www.investopedia.com/terms/r/reinsurance.asp
[11] http ://www. iii.org/publications/a-firm-foundation-how-insurance-supports-the-economy/driving-economic-progress/contribution-to-gdp
[12] https ://en.wikipedia. org/wiki/Insurance
[13]
http://www.azerbaiians.com/content 739 en.html
HOLDING MEETINGS AND CONFERENCES AND THE ABILITY TO LISTEN
Venelin Terziev,
Professor, Ph.D., D.Sc. (National Security), D.Sc. (Ec.), University of Rousse, Rousse,Bulgaria, National Military University, Veliko Tarnovo, Bulgaria
Marin Petkov, Associate Professor, Ph.D., National Military University, Veliko Tarnovo, Bulgaria
Abstract: The paper examines some of the key issues in the organization and the implementation of meetings and conferences. The positive and negative characteristics of the meetings and conferences are clarified and the conditions for their successful holding are concluded on. The study makes analyses of the main features of such events and the most often gaps in the achievement of their goals and targets, paying special attention to the ability to listen and the approaches to motivation. The factors of holding a successful meeting or a conference are outlined stressing on the need to gain results and effectiveness.
Key words: meeting, conference, organization, ability to listen.
Meetings and conferences are being held all the time in every public organization /economic, business, military etc./, aimed to collective decision making on a particular matter /past, current or future/ or to analyze events, facts and phenomena and to set measures to eliminate their negative impact on the overall operation of the organization.
The success or failure of a meeting or conference largely depends on the person presiding it
(chairperson). To guarantee the success of the meeting or conference, the presiding person should:
First: Define the goal of the meeting or conference. According to C. Parkinson and M. Rustomji „What the manager should mostly think about when calling or attending a meeting is: „What should this meeting add?" „Is it only to make noise or it is useful for something?" [2].
