Mykhailo Arych

The study investigates the theoretical foundations and contemporary features of entrepreneurship, taking into account the specificities of investment and innovation activities as well as the formation of the business entity’s image. Key practical aspects of investment and innovation activities and corporate image formation under current conditions are analyzed with due consideration of the Ukrainian context. Furthermore, the principal challenges are identified, and directions for improving investment and innovation activities and enhancing the image of business entities in modern conditions are proposed. The research identifies and examines the following theoretical and practical features of entrepreneurship in Ukraine: (1) the essence of entrepreneurship and the specificities of its interpretation in contemporary conditions; (2) the necessity and conditions for ensuring the principle of freedom of entrepreneurial activity; (3) commercial activity as a component of investment and innovation processes and corporate image formation; (4) investment and innovation activities and corporate image formation in the context of venture firms and small businesses; (5) social entrepreneurship in relation to investment and innovation activities and corporate image formation. It is substantiated that entrepreneurial activity should be interpreted as a set of legitimate actions carried out on a professional and regular basis by an entity that has formally acquired the status of an entrepreneur, involving the assumption of individual risk and oriented toward achieving an economic outcome in the form of profit. At the same time, entrepreneurship is conceptualized as a dynamic and initiative-driven segment of the business environment, characterized by a high degree of autonomy, responsibility, and adaptability. The study further demonstrates that the economic nature of commercial activity (including investment and innovation processes and corporate image formation) is revealed through a system of commodity exchange processes encompassing the purchase and subsequent sale of goods. These processes operate within a continuous cycle of “resource provision – commodity form – realization – gross income formation – final financial result.”

The paper examined management methods and regulatory and legal features of determining the conditions for using human genetic data for underwriting purposes in the areas of life and health insurance, and defined and substantiated conceptual approaches to regulating the use of genetic information for assessing life and health insurance risks. It was established that currently one of the main criteria for dividing and classifying these management approaches is the presence of regulatory and legal support for general action to protect against genetic discrimination, which in turn provides for the protection and/or prevention of discrimination of a person based on his or her genetic characteristics and in access to life and health insurance services. In addition, it was determined that important criteria for substantiating conceptual approaches to regulating the use of human genetic information to assess its insurance risks are the social role of insurance, the possibility, feasibility and quality of using genetic research technologies as a new underwriting tool, the risk of genetic discrimination, the possibility of avoiding information asymmetry and preventing adverse selection, etc. It was substantiated that the most appropriate (taking into account current trends in the development of insurance markets) way of dividing approaches to regulation and determining the conditions for using human genetic data for underwriting purposes in the areas of insurance of risks related to life and health is to define such groups for countries in which 1) there is no regulation at all; 2) there is a moratorium (ban) under government supervision over the insurance industry, or 3) sectoral or special legislation on protection against genetic discrimination in insurance; 4) the main and only regulatory instrument is the Convention on Human Rights and Biomedicine; 5) available “soft” regulatory approaches: optional regulatory regulation, available ethical recommendations, or only a court decision.

This article provides an in-depth examination of prevailing trends in the conceptual and applied dimensions of genetic discrimination within actuarial practices governing life insurance and critical illness insurance, including health insurance. Particular emphasis is placed on the expanding role of genetic information in underwriting procedures and actuarial risk stratification. The study systematizes categories of diseases for which genetic data concerning the probability of disease manifestation are most frequently utilized by insurance undertakings in the evaluation of insurance risks. It is convincingly argued that the valid and methodologically sound interpretation of genetic information necessitates a holistic assessment of the insurance applicant’s overall health profile, incorporating clinical, environmental, and behavioral determinants. The article demonstrates that the fragmented or erroneous interpretation of genetic data may result in distorted actuarial estimations, institutionalized forms of genetic discrimination, and economically unjustified adjustments in insurance premiums. Empirical cases of genetic discrimination arising in actuarial activities within the domains of life and health insurance are subjected to systematic analysis. The findings reveal that the most recurrent manifestations of genetic discrimination in insurance markets encompass: (1) outright denial of insurance coverage or the imposition of actuarially inflated premiums, particularly in relation to African Americans carrying the sickle cell anemia gene; (2) adverse modification of contractual conditions or refusal to insure individuals exhibiting a genetic predisposition to Huntington’s disease; and (3) exclusion from coverage under health insurance policies for individuals possessing gene mutations associated with an elevated risk of developing Long QT syndrome. The article further substantiates a set of regulatory and financial mechanisms aimed at mitigating genetic discrimination in insurance practice. These mechanisms include the application of individualized premium-setting models, the establishment of segregated insurance risk pools, and the partial subsidization of life insurance costs through public budgetary instruments.

Introduction. The article examines the risks and features of information asymmetry in access to genetic information of insurance applicants during actuarial activities in the field of life and health insurance. Problem Statement. The current conditions under which both insurance risk assessment and actuarial activity in general in the insurance sector both in Ukraine and abroad can often be characterized by risks of imbalance and information asymmetry during the conclusion of an insurance contract between the insurer and the insured. As a result, such a situation can lead to adverse selection, which occurs when insured persons know the results of their genetic tests or other genetic information and do not disclose it to the insurance company before concluding an insurance contract. The purpose is to evaluate the risks and features of information asymmetry in access to genetic information of insurance applicants during actuarial activities in the insurance sector. Methods. The article uses a complex of both general scientific and specific methods, including the following scientific research approaches: analysis, synthesis, description, grouping, theoretical generalization and comparison. As sources of materials, mainly foreign and domestic scientific publications on this topic were used, as well as scientific analytical studies related to the issue of information asymmetry in access to genetic information of insurance applicants during actuarial activities in the insurance sector. Results. It is substantiated that in most cases insurance companies seek to avoid both information asymmetry during actuarial activities in the insurance sector (assessment of insurance risks and/or determination of any other terms of the insurance contract) and adverse selection. After all, these two factors can lead to negative financial consequences for the insurance company, because the assessment of insurance risks was not completely objective and did not take into account all the information that was available to the insured. At the same time, the degree of impact of information asymmetry and adverse selection on the insurance company will also partly depend on the type of insurance service: for the spheres of life insurance and health insurance, the impact of information asymmetry in access to genetic information of insurance applicants on the financial and economic condition of the insurer will be correspondingly different. Conclusions. The study substantiates that information asymmetry poses significant challenges to the stability and efficiency of the insurance market, and can also be a cause of adverse selection (in the context of genetic information), which occurs when an insurance applicant is aware of his increased genetic risk and does not report this data to the insurer in order to buy an insurance policy at a price lower than that which would correspond to the true insurance risk that this insurance applicant has.

The article examines the provisions of the Law of Ukraine «On Insurance» that are most relevant to regulating access to and use of human genetic data during the evaluation of insurance risks and/or determining any other terms of the insurance contract, as well as compares them with similar provisions in the previous edition of this Law. The content of the articles from both the older and newer editions of the Law of Ukraine «On Insurance», which are the most pertinent to regulating the access to and use of human genetic data during the evaluation of insurance risks and/or the determination of any other conditions of the insurance agreement, has been identified, analyzed, and compared. As a result of the research, it is found that the current version of the Law significantly expands the capabilities of insurance companies in accessing human genetic data to evaluate insurance risks during the conclusion and validity of an insurance contract. Thus, the right of the insurance company has been extended not only to request from the insured any documents necessary for evaluating the insurance risk, but also to determine the main criteria and requirements for information that is significant for the evaluation of the insurance risk. At the same time, the current Law does not provide for any restrictions on the use of genetic information (including the results of genetic research) of a person. The insured’s obligation to inform the insurer of any circumstances that are of significant importance for the evaluation of insurance risk (for example, if a person knows the result of their genetic analysis which shows the probability of developing a disease) has been expanded not only at the time of concluding the insurance contract, but also during its validity, if such circumstances have changed (for example, if the person has undergone a new genetic analysis). Prospects for further research in this area include conducting a qualitative study of the activities of insurance companies that insure life and health risks to identify and analyze practical cases (of course, if any) of the use of human genetic information by insurers for the purpose of evaluating an individual’s life and health insurance risks and/or determining any other terms of the insurance contract.

The specifics of Ukraine’s regulatory and legal framework, which may be relevant in the context of regulating the use of human genetic information for assessing insurance risks and determining other terms of insurance contracts, is revealed. It has been established that currently there are no such norms in the current legislation of Ukraine that would directly outline the terms for the use of genetic data for insurance underwriting purposes. Characterization is presented for the position of the National Bank of Ukraine as the main insurance market regulator regarding the lack of authority and plans to strengthen the regulation of voluntary insurance activities of insurance companies in the context of determining the features and terms for the use of genetic information for underwriting purposes in life insurance and health insurance markets. In view of certain possible risks associated with genetic discrimination of policyholders when concluding insurance contracts, as well as with the absence of the term "genetic discrimination" in Ukraine’s legislation, it is shown that the list of grounds on which discrimination is prohibited (including in the insurance market), is not exhaustive, therefore, Ukrainian legislation can also provide for protection against discrimination based on genetic characteristics (information). It is substantiated that the initial stage in specific regulation of the use of genetic information for insurance risk assessment may be the ratification by Ukraine of such norms of international law as Recommendation CM/Rec(2016)8 of the Committee of Ministers of the Council of Europe on the processing of personal health-related data for insurance purposes, including data resulting from genetic tests, Convention for the Protection of Human Rights and Dignity of the Human Being with regard to the Application of Biology and Medicine: Convention on Human Rights and Biomedicine. The need for more in-depth further research into the insurance market regarding specifically the practical use of policyholders' genetic information by insurance companies in Ukraine for underwriting when concluding contracts related to life and health is emphasized. Розкрито особливості нормативно-правового забезпечення в Україні, яке може бути релевантним у контексті регулювання використання генетичної інформації людини для оцінювання страхових ризиків і визначення інших умов договорів страхування. Встановлено, що нині таких норм, які б прямо окреслювали умови застосування генетичних даних для цілей андеррайтингу в страхуванні, в чинному законодавстві України немає. Охарактеризовано позицію Національного банку України як основного регулятора страхового ринку щодо відсутності повноважень і планів посилювати регулювання діяльності страхових компаній за добровільним страхуванням у контексті визначення особливостей і умов застосування генетичної інформації для цілей андеррайтингу на ринках страхування життя і в медичному страхуванні. З огляду на певні можливі ризики, пов’язані з генетичною дискримінацією страхувальників при укладанні договорів страхування, а також з відсутністю в законодавстві України терміна «генетична дискримінація», показано, що перелік ознак, за якими забороняється дискримінація (у тому числі й на ринку страхування), не є вичерпним, отже, українське законодавство також може передбачати захист і від дискримінації на основі генетичних ознак (інформації). Обґрунтовано, що початковим етапом специфічного регулювання використання генетичної інформації для оцінювання страхових ризиків може стати ратифікація в Україні таких норм міжнародного права, як Рекомендації CM/Rec(2016)8 Комітету міністрів Ради Європи щодо принципів використання медичних даних людини для цілей страхування (включаючи дані результатів генетичних досліджень) і Конвенція про захист прав і гідності людини щодо застосування біології та медицини: Конвенція про права людини і біомедицину. Наголошено на необхідності більш глибоких подальших досліджень страхового ринку щодо саме практичного використання страховими компаніями в Україні генетичної інформації страхувальників для андеррайтингу при укладанні договорів, пов’язаних з життям і здоров’ям.

Introduction. The article examines the specifics and role of genetic information for insurance risk assessment in the life insurance market in Ukraine. Problem Statement. The insurance market developments of different countries are increasingly characterized by the adoption of specific regulations regarding the features and conditions of use of genetic information. Therefore, the issue of regulating the rights and obligations of all participants in insurance relations regarding the use of such information of future owners of insurance policies for underwriting in insurance requires a comprehensive solution taking into account the interests of all parties. The purpose of the research is to evaluate the necessity of application of specific regulations on the insurance market, specifically in the field of using genetic data for insurance purposes. Methods. The sources of materials were scientific publications, analytical studies, as well as legislation in the field of regulation of the use of genetic information for the assessment of insurance risks. The research paper used the following empirical methods, such as analysis, synthesis, grouping, description, comparison, theoretical generalization. Results. The results show that currently some risks exist in Ukraine: firstly, the genetic discrimination, since most life insurance companies are interested in the genetic information of policyholders, and can request it from any third parties: therefore, there is a possibility of using it to assess insurance risk; secondly, an information asymmetry, which is a consequence of greater awareness of insurance companies about the insurance risks than that of the policyholders. After all, policyholders may not inform the insurance company about all the genetic data (for example, the results of genetic studies) that describe their genetic predisposition to future changes in health. Conclusions. This study substantiated factors which confirm the relevance of introducing legislative regulation regarding the use of genetic information (including the results of genetic analyzes) for underwriting in insurance. Вступ. У статті досліджено особливості та роль генетичної інформації для оцінки страхових ризиків на ринку страхування життя в Україні. Проблематика. Розвиток страхових ринків різних країн дедалі частіше характеризується запровадженням специфічного регулювання щодо особливостей та умов використання генетичної інформації. Тому питання врегулювання прав та обов’язків усіх учасників страхових відносин щодо використання такої інформації майбутніх власників полісів страхування для андерайтингу в страхуванні потребує комплексного рішення з урахуванням інтересів усіх сторін. Мета – оцінка необхідності застосування специфічного регулювання страхового ринку в сфері використання генетичних даних для цілей страхування. Методи. Джерелами матеріалів були наукові публікації, аналітичні дослідження, а також законодавство в сфері регулювання використання генетичної інформації для оцінки страхових ризиків. У роботі були використані такі загальнонаукові та спеціальні методи дослідження, як аналіз, синтез, групування, опису, порівняння, теоретичного узагальнення. Результати. В Україні наразі існують певні ризики: по-перше, генетична дискримінація, адже більшість компанії страхування життя цікавляться генетичною інформацією страхувальників, можуть запитувати її у них та будь-яких інших третіх сторін, а тому існує ймовірність її використання для оцінки страхових ризиків; по-друге, інформаційна асиметрія, що є наслідком кращої поінформованості страхувальників про їхні страхові ризики, ніж страховиків. Адже страхувальники можуть не повідомити страховій компанії про всі генетичні дані (наприклад, результати генетичних досліджень), що описують їхню генетичну схильність до майбутніх змін стану здоров’я. Висновки. Обґрунтовано фактори, які підтверджують актуальність запровадження законодавчого регулювання використання генетичної інформації (у т. ч. результатів генетичних аналізів) для андерайтингу в страхуванні.

The paper is devoted to exploring the farming costs (including insurance) indicators of the agricultural enterprises in the European Union. The analysis employs the box plot methodology that provides a five-number summary for a set of data. In this paper, we analyse the evidence of interconnection between the indicators of efficiency and competitiveness and insurance costs regarding food market security. This research discusses the dynamic changes of the absolute value of farming costs (including insurance) indicators and different relative indicators derived from the original one for the agricultural enterprise holdings in the European Union for the period of 2004-2019. The results show that farming costs (including insurance) indicators of the agricultural holdings should be considered as an instrument for providing food market security. Based on these research results, we are going to further explore the impact of insurance on the food market security. In addition, these research results could help to clarify the difference between EU countries and dynamic changes in farming costs (including insurance) indicators of agricultural holdings.