Management of financial risks of insurance company

Лойко, Валерія Вікторовна and Боєва, Марія Юріївна (2019) Management of financial risks of insurance company European scientific journal of Economic and Financial innovation (2(4)). pp. 21-29. ISSN 2617-863X; 2617-8648

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Abstract

The article deals with the types of financial risks of an insurance company, identifies the reasons that can contribute to the emergence of financial risks: economic factors, external interferences in the activity of an insurance company, legal interventions, internal actions (or inactivity), instability of the financial market. The following types of financial risks of an insurance company are highlighted: risks related to the purchasing power of money; risks associated with investing; risks associated with operating the company. Separate financial risks that can be insured and that cannot be insured. The most sensitive components of the activities of insurance companies to financial risks are identified: sales, taxes, marketing, investments, finances. The risk management process involves both internal and external factor analysis. Five stages of the insurance company financial risk management process are identified: identification, evaluation, prioritization, response, implementation of the risk management plan. The most important threats to the financial activity of an insurance company in assessing financial risks include the following types of risk: the risk of loss of solvency; risks of loss of financial stability and independence. The calculations of the coefficients of assessment of the financial condition and risks of the insurance company are carried out. The calculations conclude that the insurance company selected for the study confirms the status of a financially sound and reliable company. Most indicators exceeded the regulatory level several times, showing positive upward trends. The comparative characteristics of the main methods by which companies undergo a process of minimizing financial risks are presented. The insurance company surveyed uses diversification, hedging and risk insurance techniques to reduce financial risks. It is concluded that there is no standardization of financial risks in the activities of insurance companies. Large insurance companies offset the occurrence of financial risks by the volume of insurance services provided, and small insurance companies make decisions largely based on the considerations of their owners or managers of the company.

Item Type: Article
Uncontrolled Keywords: Ukraine; insurance companies; finance; risks; management; methods; advantages; disadvantages.
Subjects: Articles in journals > Наукові (входять до інших наукометричних баз, крім перерахованих, мають ISSN, DOI, індекс цитування)
Divisions: Факультети > Факультет інформаційних технологій та управління > Кафедра фінансів та економіки
Depositing User: Валерія Вікторівна Лойко
Date Deposited: 16 Aug 2019 07:37
Last Modified: 16 Aug 2019 07:37
URI: http://elibrary.kubg.edu.ua/id/eprint/27748

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