Interaction Configurations between Banks and Insurance Companies Necessary to Ensure their Sustainable Development in the Face of Global Challenges

The purpose of the article is to analyze the reasons, principles and configurations of interaction between banks and insurance companies in order to ensure their sustainable development in the face of escalating global challenges; and to suggest practical guidance for the further development of cooperation between banks and insurance companies in Ukraine. Factors that hinder this interaction and factors that stimulate it are analyzed, including the customers’ growing need in comprehensive services both in banks and insurance companies; banks' understanding of the necessity to provide comprehensive insurance protection, development and active implementation of new products in the new sphere etc. The preconditions, principles, forms and types of interaction between banks and insurance companies, in particular, mutual investment in capital, customer relations, partnerships, integration, etc. are studied, the peculiarities of the relationship between banks and insurance companies at different levels of integration are analyzed. The ways to intensify and modernize interaction between banks and insurance companies in Ukraine in the face of the escalating global challenges are defined. The analysis of diagnostic indices of banks and insurance companies shows that the financial indicators of banks are not strongly affected by the presence of an insurance company, and as for insurance companies, the presence of banks as a part of financial conglomerates allows such companies to increase the volume of insurance contracts and receive gross insurance premiums. Prospects for further research in this area can be the following: to carry out correlation and regression analysis of the relations between the financial performance of banks subject to the presence of an insurance company in the financial conglomerate, on the one hand, and the financial performance of insurers subject to their interaction with a banking institution, on the other; to analyze the formation of an organizational mechanism in banks and insurance companies; to analyze the ways of improving the system of state supervision over the relations and cooperation between the abovementioned entities.