The general state of the Russian insurance market is characterized by its regional segments functioning and hence the problem of their status, position and effectiveness analysis is relevant. Regional insurance markets (RIM) should provide the region with insurance cover against risks in terms of content and amount that meets the region's needs for it (that appears to be the first strategic goal of the RIM's functioning and development). At the same time, the regional insurance market is an independent segment of the regional economy and therefore it is interested in making a profit (the second strategic goal of the RIM's functioning and development). The extent of these goals achievement characterizes the effectiveness of the RIM's functioning. The paper discloses two criteria for the effectiveness of the RIM's functioning and development related to these strategic goals achievement. The effectiveness of the RIM's functioning is influenced by many different-leveled factors, which are studied in the paper. The proposed division of factors into two groups factors that positively and negatively affect the development of RIM, allowed to divide the group of negative factors into two parts - already implemented and those that can be implemented. The latter determined the ability to describe potential negative factors through risks.

The identification of factors and risks of the RIM's functioning is reasonable because management aimed at enhancing positive factors impact, reduces the influence of negative factors and prevents the realization of risks, contributes the increase of the RIM's effectiveness. The proposed approach to determination of the RIM's effectiveness, to factors classification and risks identification, can be used to increase the effectiveness of RIM. Results obtained may also be used to develop and implement national and regional strategies for socio-economic development, including the use of insurance as an institute of social and financial protection against risks.