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.

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 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 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.

The Construction of Car Insurance Business Franchise Model

2011 ◽  
Vol 393-395 ◽  
pp. 416-419
Author(s):  
Hui Che ◽  
Xiao Ge Wang
Keyword(s):  
Traffic Accident ◽  
Traffic Accidents ◽  
Insurance Market ◽  
Insurance Companies ◽  
Insurance Company ◽  
Small Claim ◽  
Mathematical Formula ◽  
Strong Reflection ◽  
Insurance Business ◽  
Car Insurance

Franchise, as the name suggests, is the limit. According to the conditions of the insurance ,the insured should be responsible for the amount of the loss. Because the franchise can eliminate many small claim, and can reduce the premium. Franchise is widely used in the property, health and car insurance. In recent years, with the increasing number of cars, the number of traffic accidents, more and more, accompanied by the insurance market is also maturing. In the traffic accident is the role played by the insurance can not be ignored, and in the prevention of traffic accidents on the insurance companies also have their own role - deductibles. Deductibles allow car drivers to pay more attention to traffic laws, thereby reducing the occurrence of small incidents. The establishment of the quota-free profit is to reduce claims cost insurance companies an important tool. However, the deductible value of the determination is caused by the strong reflection of the community, but also increased the insurance company and the conflict between clients. This article through to one insurance company three years of the data and found that the claim, and statistical law claims its three-year claims the results. But at the same time, through the establishment of mathematical formula, get a franchise values.

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.

scholarly journals Formation of the insurance market in Ukraine: realities and problems

2019 ◽  
pp. 132-137
Author(s):  
Natalia Botvina
Keyword(s):  
Financial Stability ◽  
The State ◽  
Insurance Market ◽  
Insurance Companies ◽  
Slow Increase ◽  
Significant Information ◽  
Insurance System ◽  
Insurance Sector ◽  
Financial Condition ◽  
Investment Process

Insurance is one of the important financial segments of the national economy, where financial and investment resources are formed, accumulated, redistributed and used, and there is an interaction between producers and consumers of insurance products. The financial condition of most insurers is quite low and does not provide them with competitive advantages even in the domestic insurance market. The decisive factor in the opacity of insurance processes is determined by the insurers of circuit transactions. Public reporting of insurers does not contribute to an objective diagnosis of their financial condition, stability, and often inaccuracies and errors. However, the fall in the relative indicators of insurance indemnity in the conditions of a steady rise in the size of insurance premiums convinces that insurance has not yet fully realized its function of providing real insurance protection and covering the existing risks of economic entities. Carrying out structural restructuring of the economy and economic reforms necessitate further development of the insurance market of Ukraine as part of the financial market. Insurance implements the state policy of socio-economic protection of the population, as well as generates significant investment resources. Foreign experience shows that insurance companies have a special place in ensuring the investment process, the possibility of accumulating financial resources, the transformation of the insurance market into a powerful source of investment resources. The main reasons that threaten insurers and, consequently, the financial security of the state, are a significant narrowing of the life insurance segment, a slight increase in insurance capital, slow growth of insurance reserves, slow increase in financial stability, there are structural transformations to expand voluntary property insurance. The development of the insurance sector and increase the confidence of economic entities in insurance institutions depends on the insurance policy, method and regulatory levers of the state. It should be noted that the domestic insurance market is considered to be a fairly closed and non-transparent market. This is due to the extremely heterogeneous construction of the market environment, low level of transparency of the insurance market, the lack of detailed objective data on the functioning of a particular insurer and the structure of its financial capital. The main problems hindering the development of the insurance market in Ukraine are considered. The article pays attention to significant information secrecy, political and financial instability, lack of insurance professionals. Currently, the domestic insurance system is slowly developing due to formal schemes, mainly in an extensive format, and is accompanied by various problems of financial, information-analytical, organizational and institutional-infrastructural nature. However, there are problems of increasing the quality of insurance products, combining and harmonizing the interests of participants in the insurance system. The decisive problems of Ukrainian insurers in the transition to new market conditions was the need to adapt to a tough competitive environment.

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.

scholarly journals Mechanisms of Protection from Interest Rate Risk with Reference to the Life Insurance Market in Montenegro

2018 ◽  
Vol 7 (1) ◽  
pp. 17-42
Author(s):  
Milijana Novović Burić ◽  
Vladimir Kašćelan ◽  
Milivoje Radović ◽  
Ana Lalević Filipović
Keyword(s):  
Risk Management ◽  
Interest Rate ◽  
Life Insurance ◽  
Financial Management ◽  
Financial Stability ◽  
Interest Rate Risk ◽  
Economic Security ◽  
Insurance Market ◽  
Insurance Companies ◽  
Rate Risk

Abstract Insurance companies are facing major challenges that point to the need for control process and risk management. Risk management in insurance has a direct impact on solvency, economic security, and overall financial stability of insurance companies. It is very important for insurance companies to adequately calculate risks to which they are exposed. Asset liability management (ALM), as an integrated approach to financial management, requires simultaneous decision-making about categories and values of assets and liabilities in order to establish the optimum volume and the ratio of assets and liabilities, with the understanding of complexity of the financial market in which financial institutions operate. ALM focuses on a significant number of risks, whereby the emphasis in this paper will be on interest rate risk which indicates potential losses that may reflect in a lower interest margin, a lower value of assets or both, in terms of changes in interest rates. In the above context, the aim of this paper is to show how to protect from interest rate changes and how these changes influence the insurance market in Montenegro, both from the theoretical and the practical point of view. The authors consider this to be an interesting and very important topic, especially because the life insurance market in Montenegro is underdeveloped and subject to fluctuations. Also, taking into account the fact that Montenegro is a country that has been making serious efforts to join the EU, it is expected that insurance companies in Montenegro will strengthen their financial position in the market even using the ALM traditional techniques, which is shown in this paper.

scholarly journals Factors influencing and dynamics of the agricultural insurance market

VUZF Review ◽  
2021 ◽  
Vol 6 (2) ◽  
pp. 42-49
Author(s):  
Nataliya Tanklevska ◽  
Vitalina Yarmolenko
Keyword(s):  
Crop Production ◽  
Agricultural Sector ◽  
The State ◽  
Insurance Market ◽  
Insurance Companies ◽  
Agricultural Insurance ◽  
Agricultural Producers ◽  
Agricultural Enterprises ◽  
Insurance Sector ◽  
Factors Influencing

The article is aimed at identifying modern features of insurance in the agricultural sector of the Ukrainian economy and defining the factors of influence on the agricultural insurance market. The article discloses interpretation of the terms of «insurance» and «agricultural insurance» and also presents the types of possible risks arising in the activities of agricultural enterprises. The performance indicators of leading insurance companies in the field of agricultural insurance are analyzed. The current state and dynamics of insurance of agricultural risks, which arise both in the field of crop production and in livestock, are researched. This will allow predicting the future prospects of the market for insurance services and products, as well as finding possible optimal ways to solve the problems of product insurance, faced by the agricultural producers. The main factors influencing the efficiency of the insurance market in the agricultural insurance sector are allocated. The basic principles of insurance of agricultural products with the State support are analyzed. It is defined that the further development of agricultural insurance should be directed towards creating a profitable and safe environment for all participants in the agricultural market, which provides for the distribution of risks between agricultural producers, processing enterprises, banks, insurance companies and the State. The agricultural insurance of risks creates possibilities for advantageous harmonizing the interests of participants in the agricultural insurance market and the State as a party whose first priority is to ensure stable economic growth.

scholarly journals INNOVATIVE MANAGEMENT STRATEGIES BY ACTIVITIES OF INSURANCE COMPANIES: INTERNATIONAL AND NATIONAL CONTEXT

2021 ◽  
pp. 65-70
Author(s):  
Vilenchuk O.
Keyword(s):  
Business Processes ◽  
Insurance Coverage ◽  
Management Strategies ◽  
Insurance Market ◽  
Insurance Companies ◽  
Insurance Company ◽  
Investment Activity ◽  
Innovative Strategies ◽  
Innovative Management

This review article is devoted to the study of innovative strategies for managing the activities of insurance companies. In the condi-tions of risky environment, rather high probability occurrence of threats of natural and technogenic character, problems concerning the necessity of a scientific substantiation of the process of the insurance market stakeholders’ interaction aggravate. It is established that insurance in the world economic space is an indispensable financial and economic tool for neutralizing a variety of risks, especially given today’s the socio-economic, financial, epidemiological dangers. It is proved that despite the key parameters’ positive dynamics of the Ukrainian insurance market development for 2009-2019, there is a need to intensify business and investment activity of its participants. The competitive environment of the insurance market requires insurance companies to implement innovative management strategies focused primarily on solving two interrelated problems: firstly, the expansion of property risks’ insurance coverage, as well as risks related to citizens’ life, health and ability to work, secondly, the formation of the insurers’ solvency and ensuring an acceptable level of insurance operations’ profitability in terms of certain types of insurance. It is determined that one of the primary tasks of the insurance company’s management is the management of its business processes aimed at forming a model of customer-oriented behaviour in relation to potential customers. The article emphasizes the need to use a variety of innovative management strategies to achieve medium-term and long-term goals of the company in the insurance market. In particular, the expediency of diversification and the use of alternative pricing strategies for insurance services for long-term and general types of insurance is argued. Proposals aimed at digitalization of the insurance market and wide application of FinTech technologies in the field of insurance services are formulated: automated underwriting, IOT-technologies; blockchain in insurance. Summarizing the results of the study, the author’s vision of the further insurance relations’ functioning of in society is specified. Keywords: risks, insurance company, insurers, insurance protection, insurance market stakeholders, management. Статтю присвячено дослідженню інноваційних стратегій управління діяльністю страхових компаній. В умовах ризикогенного середовища, досить високої ймовірності виникнення загроз природного та техногенного характеру загострюються проблеми щодо необхідності наукового обґрунтування процесу взаємодії стейкхолдерів страхового ринку. Аргументовано, що страхування у світовому економічному просторі є незамінним фінансово-економічним інструментом нейтралізації найрізноманітніших ризиків, особливо зважаючи на соціально-економічні, фінансові та епідеміологічні небезпеки сучасності. Визначено, що одним із першочергових завдань менеджменту страхової компанії є управління її бізнес-процесами, спрямованими на формування мо-делі клієнтоорієнтованості відносно потенційних клієнтів. Наголошено на необхідності використання різноманітних інноваційних стратегій управління для досягнення середньострокових та довгострокових цілей компанії на страховому ринку. Зокрема, аргу-ментовано доцільність здійснення диверсифікації та використання альтернативних стратегій ціноутворення на страхові послуги з довгострокових та загальних видів страхування. Сформульовано пропозиції, спрямовані на цифровізацію страхового ринку та широке застосування FinTech-технологій у сфері страхових послуг: автоматизований андерайтинг, ІОТ-технології; блокчейн у страхуванні. Узагальнюючи результати проведеного дослідження, конкретизовано авторські підходи до подальшого функціонування страхових відносин у суспільстві.Ключові слова: ризики, страхова компанія, страхувальники, страховий захист, стейкхолдери страхового ринку, управління.

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