SOCIAL SIGNIFICANCE OF INSURANCE AS A FINANCIAL PROTECTION INSTRUMENT

It is introduced the single license rules is the most significant step towards formation of the single insurance market in the EU. EU Directives provide for the following requirements to single license issuance: adoption of the single legal form of insurance company incorporation and common restrictions applicable to business types. This requirement means that EU insurance companies shall not be engaged in any other type of business, which is not related to insurance business. Such requirement is introduced in view of the specific social significance of insurance as a financial protection instrument.