scholarly journals DIRECTIONS OF USING THE INSURER'S FINANCIAL RESOURCES THROUGH THE PRISM OF THE CONTROLLING SYSTEM

2021 ◽  
pp. 148-159
Author(s):  
Svitlana Korol ◽  
Iryna Ivashkiv
Keyword(s):  
Financial Stability ◽  
Net Present Value ◽  
Relevant Information ◽  
Cash Flows ◽  
Insurance Market ◽  
Insurance Companies ◽  
Financial Resources ◽  
Insurance Company ◽  
Advantages And Disadvantages ◽  
Controlling System

Introduction. Given the constant challenges of today, the key to survival and the basis of stable development of insurance companies is the effective management of financial resources, the skillful use of which allows a stable competitive position in the insurance market and determines the vectors of their development. It is the financial resources of insurers that are one of the most important resources that are designed to support their activities. Since the insurance, financial and investment activities of insurers are closely linked, the use of their financial resources is aimed not only at making insurance payments, but also at investing. In fact, skillful management of financial resources is the basis for financial stability and competitiveness in the insurance market, which stimulates the introduction of modern methods and approaches in the field of management. Therefore, just controlling is almost the only possible tool for building optimized management systems in the activities of insurers. At all levels of government, it allows you to provide timely and relevant information in order to make optimal decisions. The study of the process of building an insurance controlling system within the operation of the insurance company in order to optimize the use of financial resources will determine the current controlling tools and the effectiveness of the controlling system on the example of the insurance company. The importance of financial resources in the financial and economic activities of insurance companies and the possibility of their optimization in the controlling system in today's conditions becomes especially relevant, which requires further research. Purpose. Initiate the process of building an insurance controlling system within the functioning of the insurance company, which will allow optimizing the use of its financial resources. Method (methodology). In the process of research such methods were used as logical, which allowed to analyze scientific works in the field of financial resources of the insurer; analytical, which was used to analyze and evaluate the costs of implementing a controlling system, as well as the effectiveness of its application; graphic, which made it possible to interpret the process of building an insurance controlling system within the functioning of the insurance company in a visual form. Results. The importance of financial resources in the activities of insurance companies is determined. The role of controlling for the purpose of optimized utilization of financial resources of insurers is revealed. The advantages and disadvantages of creating a controlling service within the activities of the insurance company are highlighted, which allowed us to see that the creation of such a system has more advantages than disadvantages. A system of topical controlling tools for insurers is recommended. A visual process of building an insurance controlling system within the operation of an insurance company is proposed. The characteristics of the construction of the controlling department on the example of PJSC IC "Euroins Ukraine" are given. The efficiency of introduction of the controlling system at PJSC IC "Euroins Ukraine" with the use of the indicator of net present value of cash flows is determined. As a result of calculations it is determined that the introduction of a controlling system in the insurance company is appropriate. It is established that the practical aspects of the study of financial resources in the system of controlling insurance companies need further study in the direction of optimizing their use.

scholarly journals INVESTIGATION OF BANKRUPTCY INSURANCE OF THE INSURANCE COMPANY

2021 ◽  
Author(s):  
Liliya Ignatovich
Keyword(s):  
Financial Services ◽  
Financial Stability ◽  
Financial Analysis ◽  
Objective Assessment ◽  
Insurance Market ◽  
Insurance Companies ◽  
Insurance Company ◽  
Accurate Analysis ◽  
Advantages And Disadvantages ◽  
Probability Of Bankruptcy

The analysis of probability of bankruptcy is one of directions of financial analysis, and the general purpose of financial analysis – rendering assistance in development of reasonable and effective administrative decisions. The analysis is important for all subjects of the insurance market, including the National Bank of Ukraine, as the regulator of the financial services market, which is interested in the financial stability of the insurance market. Especially, if in recent years there has been a tendency to reduce the number of insurers. The bankruptcy probability assessment may be carried out by the management of the company itself to identify weaknesses and prevent bankruptcy. There is great interest in methods that allow assessing the probability of bankruptcy in advance, predicting the onset of financial insolvency of the organization. Analysis of the likelihood of bankruptcy allows the company to obtain an objective assessment of its activities, can adjust it in the right direction by taking prompt or preventive measures. The aim of the research is to determine the probability of bankruptcy of the insurance company, by the example of ALC “IC “Motor-Garant”” on the basis of foreign and domestic models, such as Taffler-Tishaw, Springate, A.P. Zaitseva. Analysis of the likelihood of bankruptcy by several methods will be carried out on the basis of the data reflected in the company’s financial statements. These models are considered to determine the probability of bankruptcy of the insurance company, determining their main advantages and disadvantages, as well as the possibility of their use in practice. It is proved, that the estimation of probability of bankruptcy of insurance companies in modern conditions of doing business allows to define the real situation of the insurer in the market and to reveal critical moments in activity. As a matter of fact, the earth models were started for the old enterprises, but is it the land has its own specifics. However, one should take into account that all forecasting methods have their limitations and inaccuracies. For the most complete and accurate analysis it is recommended to rely on the results of three or more different models.

scholarly journals Key Aspects of Online Insurance

2020 ◽  
Vol 2 (97) ◽  
pp. 64-74
Author(s):  
E.T. Prokopchuk ◽  
◽  
Y.V. Ulianych ◽  
S.A. Ptashnyk ◽  
N.V. Butko
Keyword(s):  
Insurance Market ◽  
Insurance Companies ◽  
The Internet ◽  
Internet Services ◽  
Insurance Company ◽  
Insurance Policy ◽  
Internet Technologies ◽  
Advantages And Disadvantages ◽  
On Line ◽  
Insured Event

In the conditions of virtualization of economic relations, the subjects of the insurance market can not stay away from these processes, so in order to improve the quality and level of availability of insurance services it is necessary to spread internet technologies in insurance. The main incentive for the introduction of Internet services by insurance companies is the need to reduce costs, expanding the geography of activities, ensuring diversification of risks. No less important factors are simplicity and comfort of on-line purchase of insurance product. The Ukrainian insurance market is at the stage of development and formation, having a number of problems and uncertainties. Therefore, its further information and technological development should receive priority in the economic and social aspects of government policy, taking into account its European integration guidelines. The article deals with the concept of Internet insurance. It is established that the approaches of scientists to the disclosure of the content of the concept of "Internet insurance" have differences. However, they converge on the definition of the Internet insurance as a process of interaction between the insurance representative and the insurer, connected with the provision of insurance services by the insurer, their service, performance of insurance payments in case of occurrence of an insured event due to the use of Internet technologies. The main advantages and disadvantages of online insurance are presented. The list of main advantages includes: simplification of the insurance process, efficiency of registration, simplicity and universality of payment methods, minimization of "human" factor, automation of calculation of the sum insured and tariffs with the help of insurance multicalculator. The list of main drawbacks includes: a much smaller number of insurance products are placed on the Internet sites of insurance companies for sale, the need for the client to understand the nuances and subtleties of working with the site of the insurer, set certain options for insurance amounts, which the client can not change. The stages of obtaining the insurance service through the Internet system have been considered, the offer of services by insurance companies of Ukraine "in live" and "on-line" and innovations on the Internet insurance market of Ukraine have been analyzed, the main spectrum of Internet services providing insurance companies in the Internet has been investigated, the number of insurance companies for the last years has been considered in dynamics. For the further development of Internet insurance it is necessary to improve the legal framework on this issue; it is necessary that the sites of insurance companies contain sufficient information content and for the customers a number of opportunities: obtaining true information about the activities of the insurance company and its services; calculation of the cost of the insurance policy with the help of online calculator; filling in an application for insurance; in case of an insured event, the implementation of remote payment of the insurance policy and insurance payments; delivery of the insurance policy to the customers; and delivery of the insurance policy to the customers.

scholarly journals THE PROBLEMS OF THE DOMESTIC REINSURANCE DEVELOPMENT IN CONDITIONS OF FINANCIAL INSTABILITY

2021 ◽  
Vol 3 (38) ◽  
pp. 154-161
Author(s):  
O. Stashchuk ◽  
O. Borysyuk ◽  
M. Datsyuk-Tomchuk
Keyword(s):  
Financial Stability ◽  
Rapid Development ◽  
Jel Classification ◽  
Insurance Companies ◽  
Financial Resources ◽  
Financial Instability ◽  
Insurance Company ◽  
Insurance Portfolio ◽  
The Individual ◽  
Insured Event

Abstract. Financial instability stems from the excessive volatility in the financial markets, the weakness of financial institutions and the inability of financial sector companies to fulfill their obligations, and it is no exception to insurance companies that do not have sufficient financial resources to reinsure. In modern conditions, reinsurance provides stability to the development of the insurers and is one of the most important tools that provides effective protection against various natural, man-made and other risks. The lack of financial resources of the insurance companies objectively determines the limitations of their ability to insure large risks. Reinsurance enables the insurance companies, by attracting funds from other insurers, to ensure the honest fulfillment of their obligations to insure payment at the onset of an insured event, while maintaining the stability of their financial situation. Admission to the insurance of expensive objects is dangerous for the individual insurer’s financial stability through the coverage of losses in the insured event. Admission to the insurance of expensive objects is dangerous for the individual insurer’s financial stability through the coverage of losses in the insured event. The need for reinsurance is due, among other things, to regulatory requirements for capital and assets and provides tools for rapid development of the insurance portfolio. Simultaneously reinsurance enables to protect the insurance portfolio from the influence on it of a series of large insurance risks, including catastrophic, so that the payment of insurance compensations on them does not pose a heavy burden on the one insurance company, but is carried out collectively by all participants in reinsurance. As a result, reinsurance allows you to take insurance risks that far outweigh the insurer’s own financial resources. Thus, the reinsurance system is a guarantee of financial stability of any insurance company, providing protection of its capital, and the basis for increasing the volume and quality of insurance services. In Article, the essence and significance of reinsurance in the conditions of globalization of the world economy were considered, as well as analysis of the main tendencies of the domestic reinsurance market development and the problems of its development in Ukraine were revealed. Keywords: insurance, financial instability, volatility, financial market, reinsurance, commission remuneration. JEL Classification E44, G20, G22, O16 Formulas: 0; fig.: 2; tabl.: 4; bibl.: 15.

FINANCIAL STABILITY MANAGEMENT OF THE INSURANCE COMPANY

2021 ◽  
Vol 3 (4) ◽  
pp. 128-135
Author(s):  
E. A. RUSETSKAYA ◽  
◽  
L. V. AGARKOVA ◽  
V. V. AGARKOV ◽  
◽  
...  
Keyword(s):  
Financial Stability ◽  
The State ◽  
Insurance Market ◽  
Insurance Companies ◽  
Insurance Company ◽  
Individual State ◽  
State Control ◽  
Management Decisions ◽  
State Institutions ◽  
Insurance Business

When substantiating the relevance of management decisions to ensure the financial stability of insurance companies, both for the insurers themselves and for individual state institutions, it is necessary to point out the tightening of the practice of state control and regulation of the insurance business in order to comply with the requirements of insurance legislation, protect the interests and rights of policyholders, insurers, the state and other subjects of the insurance market. The article is devoted to the study of the issues of financial stability of the insurance company and the substantiation of the mechanism for managing this category, which includes a sequence of interrelated stages. The priority directions for improving the mechanism for managing the financial stability of an insurance company are presented.

scholarly journals The Corporate Competitiveness Evaluation Model for Insurance

2020 ◽  
Vol 25 (1) ◽  
pp. 30-38
Author(s):  
E.K. Ovakimyan
Keyword(s):  
Balanced Scorecard ◽  
Evaluation Model ◽  
Insurance Market ◽  
Insurance Companies ◽  
Insurance Company ◽  
Competitive Advantages ◽  
Optimal Model ◽  
Advantages And Disadvantages ◽  
Comprehensive Information ◽  
Eventual Outcome

Subject. This article examines the different models for assessing the competitiveness of insurance companies. Objectives. The article aims to develop an optimal model for assessing the competitiveness of the insurance company, able to adequately assess the current situation and provide comprehensive information of the insurance company's position in the insurance market. Methods. For the study, I used the methods of theoretical and comparative analyses. Results. The article presents two models for assessing the competitiveness of insurance companies, namely, for external and internal users. It proposes to represent a model of measuring competitiveness for internal users as a graphic imaging, and for external users, as a table, which is based on a balanced scorecard. Conclusions and Relevance. The results of the study can help any participant of the insurance market to adequately assess the state of the insurance company, and identify competitive advantages and disadvantages to improve the financial situation of the organization. The information outlined in the article is practical for it affords to use the eventual outcome of the study in the practice of insurance organizations to improve their competitiveness.

scholarly journals NOVELIZATION TRENDS IN THE DEVELOPMENT OF INSURANCE COMPANIES IN UKRAINE

2021 ◽  
pp. 106-117
Author(s):  
Olha KNEYSLER ◽  
Natalia SPASIV ◽  
Svitlana KOROL
Keyword(s):  
Economic System ◽  
Insurance Market ◽  
Insurance Companies ◽  
Insurance Company ◽  
Advantages And Disadvantages ◽  
The Subject ◽  
Key Driver ◽  
Dialectical Analysis ◽  
The Impact ◽  
Economic Expediency

Introduction. Transformational changes in the economic system in Ukraine lead to adaptation in the digital dimension and to new vectors of development in the insurance market. The key driver of change has been digitalization. The purpose of the article is to identify innovation trends in the development of insurance companies in Ukraine and justify the introduction of digitalization on the example of an insurance company. Methods. In the process of research the methods of dialectical analysis, synthesis, formalization, graphic, as well as logical generalization were used. Results. Digital insurance is characterized as a new direction in insurance. The advantages and disadvantages of digitalization in the work of insurers are highlighted. The plan of digitalization introduction on the example of the insurance company is offered and its economic expediency is substantiated. The implementation of the proposed plan will enable the insurance company to strengthen its competitive position. Perspectives. The subject of further research is to study the impact of modern trends in the development of insurance companies as qualitatively new vectors of their development.

Improvement of Life Insurance Policyholders’ Protection Corporation with Emphasis on Consistency with the Vietnamese Market

2015 ◽  
pp. 5-27
Author(s):  
Kubo Hideya ◽  
Nga Nguyen
Keyword(s):  
Interest Rates ◽  
Life Insurance ◽  
Information Disclosure ◽  
Large Scale ◽  
Insurance Market ◽  
Insurance Companies ◽  
Financial Resources ◽  
Insurance Company ◽  
Key Points ◽  
In Series

What is needed for the Life Insurance Policyholders’ Protection Fund in Vietnam is to review and improve its system so that it is consistent with any anticipated changes of the insurance market in Vietnam, by taking advantage of the experience of the Life Insurance Policyholders’ Protection Corporation in Japan where large scale bankruptcies have occurred in series. More specifically, the key points are: (i) introducing a scheme where contract transfer is proceeded with even in the event that no savior insurance company steps forward, and placing emphasis on the indemnification of coverage-based insurance products in which the market is expected to grow, (ii) increasing the burden on policyholders of conventional deposit-based products, for example, a reduction of assumed interest rates, in an effort to increase necessary financial resources, (iii) developing professionals who are specialized in evaluating the values of bankrupt insurance companies and (iv) promoting thorough information disclosure and validating the soundness index.

CURRENT TRENDS OF INSURANCE MARKET IN UKRAINE

2017 ◽  
Author(s):  
Olena Steshenko ◽  
◽  
Oleksandra Boiko ◽  
Keyword(s):  
Financial Stability ◽  
Insurance Industry ◽  
Local Economy ◽  
Insurance Market ◽  
Insurance Companies ◽  
Structural Basis ◽  
Insurance Company ◽  
Demand For Insurance ◽  
State Supervision ◽  
Insurance Business

The stage of political and economic instability in Ukraine significantly influence on development of both individual insurance companies and the insurance market as a whole. The decrease of the solvency level of the population and trust to insurers have led to a significant reduction in demand for insurance services in recent years. That is why today insurers has faced a difficult task to increase the range, volume and quality of insurance services, increase the level of capitalization and financial reliability of insurance companies, gaining trust of legal entities and individuals. Following these measures aimed at overcoming crisis trends, the local economy will be able to attract essential investment resources, strengthen the effectiveness of state supervision of insurance activities, create a structural basis for the development of various types of insurance. One of the important factors in activating the development of the insurance business can be an effectively built underwriting process of an individual insurance company. The application of such an approach will enable the profitability and financial stability of insurance companies due to a thorough analysis and selection of risks for acceptance into insurance. The article analyzes the current state of the insurance market in Ukraine and highlights its main prospects for development. The methodology of the study is to summarize and compare the data characterizing the various components of the insurance market. The authors identify the trends in the insurance market in Ukraine, assess the situation according to various criteria, identify factors in the development of the insurance business, as well as problematic aspects of the insurance industry. The study has showed that there is a high dependence of insurance in Ukraine on the current political and economic system, which led to the dominance of demand for certain insurance products. The development of the modern insurance market is associated with the need for state support, is to create conditions for adequate functioning of the insurance market.

scholarly journals TOOLS FOR IMPROVING FINANCIAL MANAGEMENT: REALITIES AND PROSPECTS

2021 ◽  
Author(s):  
Anna Hevchuk ◽  
Liudmyla Yurchyshena ◽  
Oleh Hevchuk
Keyword(s):  
Financial Management ◽  
Financial Stability ◽  
Government Regulation ◽  
Business Management ◽  
Capital Adequacy ◽  
Insurance Market ◽  
Insurance Companies ◽  
Insurance Company ◽  
Management Tools ◽  
The Impact

The relevance of the study is that the crisis in the financial and real sectors of the economy leads to financial instability of business. This issue is especially acute for insurance companies, which attract significant financial resources on a long-term basis or funds from risky types of insurance. The crisis related to the COVID-19 pandemic has led to problems in the Ukrainian insurance services market, which requires the introduction of new management tools for insurance companies. Under such conditions, there is a need to find and implement ways to improve management efficiency, which will be aimed at achieving financial stability, increasing profitability and eliminating crisis manifestations in financial activities. The object of the study is the financial activity of the insurance company to improve the tools of business management. It is noted that the insurance services market is the second in terms of capitalization among other non-banking financial markets. An analysis of the situation in the insurance market for the previous period, which shows that the number of insurance companies continues to decline, which requires a more detailed study of the impact of business management tools. It is noted that the NBU has been a regulator of insurance companies for more than a year in terms of solvency requirements, which is positive in the development of this business, as more decisive action has been taken to apply enforcement measures for non-compliance with Ukrainian legislation. It is proposed to introduce a set of tools to improve the management of the insurance company: the development of an effective procedure for adjusting the financial condition, tools to improve management and government regulation to create a strategy for the development of the insurance market. The regulator’s implementation of financial performance and the adoption of relevant laws will help determine the development strategy and business model, which will form capital adequacy, provide the necessary level of liquidity and asset quality, which will help financial stability of companies, restore consumer confidence in the insurance market.

Indian Life Insurance Market and Corporate Performances: A Study of Selected Firms

2016 ◽  
Vol 4 (1) ◽  
Author(s):  
Joy Chakraborty ◽  
Partha Pratim Sengupta
Keyword(s):  
Market Share ◽  
Life Insurance ◽  
Market Concentration ◽  
Insurance Market ◽  
Insurance Companies ◽  
Insurance Company ◽  
Life Insurance Company ◽  
Insurance Sector ◽  
Life Insurers ◽  
Company Limited

In the pre-reform era, Life Insurance Corporation of India (LICI) dominated the Indian life insurance market with a market share close to 100 percent. But the situation drastically changed since the enactment of the IRDA Act in 1999. At the end of the FY 2012-13, the market share of LICI stood at around 73 percent with the number of players having risen to 24 in the countrys life insurance sector. One of the reasons for such a decline in the market share of LICI during the post-reform period could be attributed to the increasing competition prevailing in the countrys life insurance sector. At the same time, the liberalization of the life insurance sector for private participation has eventually raised issues about ensuring sound financial performance and solvency of the life insurance companies besides protection of the interest of policyholders. The present study is an attempt to evaluate and compare the financial performances, solvency, and the market concentration of the four leading life insurers in India namely the Life Insurance Corporation of India (LICI), ICICI Prudential Life Insurance Company Limited (ICICI PruLife), HDFC Standard Life Insurance Company Limited (HDFC Standard), and SBI Life Insurance Company Limited (SBI Life), over a span of five successive FYs 2008-09 to 2012-13. In this regard, the CARAMELS model has been used to evaluate the performances of the selected life insurers, based on the Financial Soundness Indicators (FSIs) as published by IMF. In addition to this, the Solvency and the Market Concentration Analyses were also presented for the selected life insurers for the given period. The present study revealed the preexisting dominance of LICI even after 15 years since the privatization of the countrys life insurance sector.

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