World experience shows that insurance – an effective instrument of concentration and involvement in economic activities of businesses and individuals, providing a stabilizing effect on the economy. In industrialized countries, the market of insurance services is treated as a strategic sector of the economy and the power factor of a positive impact on her. First, because the process of insurance is an important element in the economic environment. Second, the social aspect of the insurance process has an impact on improving living standards by providing reliable insurance protection. Third, the insurance is in its advanced forms increases the investment potential and increases the wealth of the nation that today is especially true for the Russian economy.
The process of decentralization and transfer a significant part of fixed assets in the property of individuals and nongovernmental organizations in Russia there is a need to objectively in a developed insurance market, whose functioning is based on the knowledge and use of economic laws, such as the law of value, the law of supply and demand. In the current climate of radical market reforms are badly needed to find out what the current insurance market and what are its characteristics. According V.V.Shahova, the insurance market – a special socio-economic structure, defined the scope of monetary relations, where the object of sale serves the insurance cover, is formed by supply and demand for it. A.A.Gvozdenko, allowing determination of the insurance market, uses the term "insured service".
By his definition, the insurance market – a set of economic relations on the sale of insurance services, expressed in the protection of property interests of individuals and entities in the occurrence of insurance claims due to funds (fees, bonuses) policyholders. M.I.Basakov determines the insurance market as a system of economic relations, representing the scope of activities of insurers and reinsurers in a given country, group of countries and internationally to provide appropriate insurance policyholders. If we consider the above definition of the insurance market without further interpretation of the author, the definition given by A.A.Gvozdenko, it is more concise, because it reveals the concept of the term "insured service". The very use of the term "insurance service" is more advantageous than the use of similarities with him on the value of the expression "insurance protection" because of the fact that more specifically and objectively reflect the real, practical side of the essence of the mechanism of insurance. In support of this view can lead D.Blanda opinion, assessing insurance is a service industry. Of the four concepts that describe, in his view, the role of insurance in a market economy – the cost, security, risk and service – the most important he believes it is the concept of "service". The insurance service is a product offered by the insurance market. Like any other commodity, it has a consumer and exchange value. Consumer cost of insurance services is to provide insurance protection, which is applied to one particular insurance takes the form of insurance coverage, ie insurance coverage in case of a specific object defined by the contract events.
The exchange value – the price of the insurance services are expressed in the insurance rate, and then – in the deposit or payment. The starting point towards the creation of the domestic insurance market, according to V.V.Shahova should be considered as a real fact of de-monopolization of the insurance activity and as a consequence, a sufficiently rapid growth of alternative insurance companies. Gradually emerging economic space for the activities of insurers. There were a qualitatively new types of insurance. Formed hundreds of different status and ownership of insurance companies. For example, as of 1996, despite unfavorable financial and general economic conditions in Russia are already in 2700 the insurance companies, of which only 6% are in state or municipal ownership, 36% are private and 58% – are in mixed ownership. Most of them (60%) have worked for not more than three years. According A.A.Gvozdenko, V.V.Shahova and several other authors, the Russian insurance market has great potential for development. This is evidenced by the fact that total insurance payments in the Russian Federation is no more than 1% of GDP, whereas in developed countries this figure is 8-10%. The prerequisites for the further development of insurance business in this country are not only the incipient financial stabilization and economic recovery, but also the formation of the sources of such development. First, strengthening the private sector: the private entrepreneur (owner) in the power of its economic isolation from the state is forced to insure their risks.