Insurance of professional participants of security market is a basic element of insurance protection of professional participants as unity of prevention, repression and compensation of consequences of realization of insurance risks.
Insurance is embodied in a range of the types of insurance and concrete insurance coverage connected with various insurance risks.
The total number of insurance coverage, available in the market, exceeds 10, and they provide protection of all range of insurance risks of professional participants, giving the serious field for maneuver at risk management.
Professional participants of security market can be divided into 3 groups:
- specialized intermediaries (broker dealers, investment banks, financial advisors, managing companies);
- auxiliary intermediaries (stock exchanges, depositaries, registrars, clearing centers);
- credit and financial organizations (commercial banks, investment funds, pension funds, insurance companies, other finance companies).
Basis of application of insurance protection to risk management of professional participants of security market - high-quality selection of the last by criterion of reference to insurance. A considerable part of risks of professional participants concerns the last, in particular: credit risk, practically all operational risks, the most part of risks of an event (with clauses).
Now in the developed financial markets commercial insurance is combined with the system of insurance and guarantee funds that is connected with various types of risks to which financial systems in general and separate financial institutions are subject.
The insured risk factors to which financial institutions are exposed include:
- disloyalty, abuses of personnel (use of false securities, documents, etc.);
- plunders of securities from storage;
- electronic and computer crimes;
- professional responsibility of employees;
- directors' liability.
Today's development of risks insurance of professional participants of security market in scales of the world market in many respects is defined by the current phase of a cycle - rather favorable for some types of insurance
professional participants (property, computer risks) and not favorable for others (professional responsibility, the directors' liability and officials).