Insurance fund: types, directions of expenses, risks

The presence of any reserve is insurance for an unforeseen event. The insurance fund is designed to accumulate resources in order to cover and eliminate the consequences of unpleasant situations. Based on the order of creation and purposes of spending, state, self-insurance funds and insurer funds are allocated.

insurance fund

What it is

Anyone who cares about their future tries to form a certain stash “just in case.”

The stash should correspond to the nature and scale of the possible situation: dental treatment – 80 thousand rubles, inflation – 3 pairs of gold earrings, food crisis – 10 kg of buckwheat. Consequently, the approximation of such a case is no longer so worrisome, since there is a reserve.

In this regard, an individual organization or state is not entirely different from an ordinary citizen, and they strive to create a reserve for their own security.

The insurance fund (SF) is a collection of accumulated money or material assets necessary to compensate for possible damage. The damage is precisely “possible”, since the situation that entailed it may not occur. Only with the help of insurance funds is it possible to balance a stable present and an unfavorable future.

about types of funds


Insurance funds are classified depending on the mechanism of formation, the scale and purposes of the distribution of funds to the funds:

  • insurer;
  • self-insurance;
  • state reserve.

Separately, state extra-budgetary funds are distinguished, which include the Pension Fund of the Russian Federation, the Social Insurance Fund of the Russian Federation, the Federal Fund for Compulsory Medical Insurance and the territorial funds of the compulsory medical insurance.

How funds are created

The mechanism for creating any insurance fund is identical: the accumulation takes place at the expense of payments to individuals and legal entities, or budget funds.

But the order of creation and goals are different.

The insurance funds of the insurer can be formed only in cash. The accumulation of funds occurs at the expense of insurance premiums of citizens or enterprises in a decentralized manner. Accordingly, the purpose of the expense is the same: compensation for harm in the event of an insurance situation. The amount of cash reserves is calculated based on past experience, theory of probability and statistical data.

Self-insurance funds represent the natural or monetary reserves of a company, enterprise, that is, a separate economic unit, formed in a decentralized manner.

Any firm is forced to function in a raging economy, because stability is possible only in theory. High demand grows into low demand, the cost of materials and raw materials is growing by leaps and bounds.

The presence of a reserve fund allows us to survive such situations, to maintain the existing operating mode, and not to interrupt production. In short, with the help of an insurance fund, a company can withstand a storm of economic instability.

State reserve funds belong to the category of special budgetary funds, are formed in a centralized manner and accumulate the country’s reserves.

The natural reserves of the country are managed by the Federal Agency for State Reserves (Rosrezerv), which is subordinate to the Government. The natural reserve is very diverse: food, food products, raw materials, fuels and lubricants, medicines and much more. Depending on the nature of the emergency, the necessary package is formed, for example, in the event of an accident at the Sayano-Shushenskaya hydroelectric power station in 2009, Rosrezerv, together with the Emergencies Ministry, promptly delivered electrical equipment and materials to the accident site.

The reserve funds of the OIV are created on the basis of decisions of the representative bodies of local self-government, and their size should not exceed 3% of the approved expenditures of the corresponding budget. Funds are used to ensure the elimination of emergencies, the implementation of emergency recovery work, etc.

State off-budget funds – PF RF, FSS RF and MHI funds – are classified as social off-budget. The concept of “off-budget” means that the formation of the fund takes place not within the budget, but at the expense of mandatory and voluntary contributions of legal entities and individuals.

The Pension Fund of Russia is the country’s main insurer for compulsory pension insurance. Its budget is significantly higher than that of the FSS and FF OMS, and is consolidated (includes budgets of all levels).

Due to what is the formation of the budget of the pension fund of Russia:

  • insurance premiums;
  • federal budget money;
  • various financial penalties (penalties, fines, etc.);
  • voluntary contributions from individuals and legal entities;
  • profit from investing free funds of the GPO;
  • reserve money for funded pension;
  • savings of persons entitled to a fixed-term pension;
  • other permitted sources.

The funds are spent on the payment of pensions, some social benefits and other purposes.

The Social Insurance Fund of Russia is a special financial and credit organization. His funds consist of the following receipts:

  1. Employers’ contributions;
  2. SP deductions;
  3. Profit from the placement of unoccupied funds;
  4. Voluntary contributions of individuals and legal entities;
  5. Transfers from the federal budget;
  6. Financial penalties (fines, etc.);
  7. Other permitted receipts.

Fund money is spent on benefits and other purposes. Interestingly, part of the FSS funds goes to pay for vouchers to health camps for children and sanatorium treatment for adults, the maintenance of sports schools for children.

The Federal Compulsory Medical Insurance Fund is a non-profit institution of a financial and credit type. Its budget consists of:

  • contributions to compulsory medical insurance;
  • financial penalties;
  • federal budget money;
  • profit from investing temporarily unoccupied funds
  • other permitted receipts.

The funds of the FF go to pay for medical care provided to insured persons, as well as other purposes specified in Art. 26 Federal Law “On CHI in the Russian Federation”. The same article regulates the formation of budgets of territorial funds and the direction of spending.

about funds and insurance


In order for the size of a particular insurance fund to be able to cover the costs incurred in the elimination of an unforeseen situation, the scale of the corresponding risks must be taken into account.

Risk, in general terms, implies a decision, the consequences of which are ambiguous.

In terms of insurance, risk means an adverse event, the consequences of which are mitigated precisely by the insurance option.

It is possible to insure only those situations, the probability of the occurrence of which lends itself to a numerical estimate, even if it is approximate. You cannot be safe in the event of a new tax, employee strikes or a coup d’etat, since their spontaneity is incompatible with calculations.

Consequently, the creation of any insurance fund is based on quantitative measurement. Therefore, state insurance funds contain such significant reserves of cash and natural products. After all, eliminating an unforeseen situation within a country with a multimillion population will require huge investments.

It is impossible to determine the standard size of the self-insurance fund, because too different areas of activity of economic entities, and each of the areas is subject to certain problems. But any company or enterprise can calculate the optimal size of the reserve for it, based on its inherent risks. A set of financial analytics methods allows you to calculate the “spirit” of the supply and demand market, the supplier market, and based on the data obtained, predict the sufficient size of the insurance fund.

An insurance company deals with a bunch of different risks, as each person or organization brings in a different risk potential. It is one thing to keep a healthy 30-year-old man safe, who for another 10 years, most likely, will not put his risk potential into action.

And another thing is a 60-year-old elderly man burdened with a bunch of chronic diseases. Accordingly, the insurer must be able to pay for any risk. Therefore, the size of the insurance fund is determined on the basis of a probabilistic approach, statistics and, of course, experience.


“Forewarned is forearmed!” This is how briefly and simply it is necessary to outline the necessity and usefulness of creating an insurance fund.

The creation of state reserve funds in Russia is secured at the highest level. Every year part of the budget funds is directed to the formation of the “national reserve”.

With regard to individual economic units, the formation of an insurance fund is mandatory only for joint stock companies. But even if you are the head of a small company or a simple private owner, take care of the availability of a reserve in case of an emergency.

The same advice for citizens: participation in the program is not only compulsory, but also voluntary insurance, it will protect you in case of risk.


Thanks to state insurance funds, the authorities can maintain a decent level of national well-being, “not to fall face down in the mud” in front of the world community and their own citizens in the event of hostilities, disasters and accidents. It is no coincidence that economically underdeveloped states are not able to independently and quickly solve the problem that has arisen within the country. Macro-level reserve funds in our state are mandatory.

Companies that have a reserve in the form of a self-insurance fund are more protected in the event of a financial or industrial crisis. A person who has secured his life and health with the help of an insurance company can count on smoothing out the consequences of a risky situation. To create a micro-level fund or not? To buy a share from an insurer or not? The answer is definitely yes! The presence of insurance funds at all levels is an indicator of the maturity, wisdom and foresight of an individual citizen, enterprise and the whole country.