ESSENTIAL ASPECTS OF ENSURING FINANCIAL AND ECONOMIC SECURITY OF INSURANCE COMPANIES IN THE CONTEXT OF THE DEVELOPMENT OF INSURANCE SERVICES COMPETITIVE MARKET

Анотація

Introduction. Insurance is an important part of the formation of the financial security system of the state. Insurance in Ukraine covers less than 15% of the insurance field, which allows us to predict the rapid development of the insurance market in the near future. The insurance industry in Ukraine will be able to provide more diverse insurance services as it builds its potential. At the same time, the expansion of insurance will create space for the emergence of new threats to the normal operation of insurers, and the issue of ensuring their financial and economic security in the new operating conditions will become even more relevant.

The reason for bankruptcy and liquidation of insurance companies in many cases is the low level of their financial and economic security. Therefore, it is necessary to draw the attention of the scientific community and insurance professionals to the problem of finding new opportunities to counter the risks and threats of insurance activities and to develop a mechanism for timely identification of declining financial and economic security of the insurer.

Purpose. The purpose of the study is to establish areas for financial and economic security of insurance companies in the context of the development of a competitive insurance market in Ukraine. To achieve this goal, important tasks are: the study of the current state of development of the insurance market and the development of a list of practical recommendations for increasing profitability and improving the management of financial and economic security of domestic insurers.

Methods. In the course of research the monographic method and a method of the theoretical analysis are used. Techniques of content analysis and synthesis are also used. The method of generalization was used in the process of forming conclusions based on the results of the study. A graphical method was used to visualize the stratistic data.

Results. The article examines a set of issues related to insurance activities and ensuring its financial and economic security. The concept of financial and economic security of the insurance company, the essence and strategic aspects of its provision are studied. The definition of strategic management of financial and economic security of an insurance company is offered. The necessity of increasing the level of financial and economic security of insurers is substantiated and proposals are given on perspective directions of its improvement.

Originality. The main threats for the security-oriented functioning of the competitive insurance market in Ukraine today are: cyber-attacks, lack of mechanisms to control the transparency of insurance market participants, low efficiency of regulation and quality control of insurance services, non-compliance of domestic insurance products with European standards, lack of national strategy of safety-oriented development of the insurance market. One of the main reasons for bankruptcy and liquidation of insurers is the inadequate level of their financial and economic security, which may be caused by the imbalance of insurance portfolios of companies. The main recommendations for increasing the level of profitability and modernization of financial and economic security management of insurance companies may be as follows: working out a general strategy for the development of the insurance company for five years, taking into account threats of digitalization of financial relations and trends in behavioral economics and interests of the company in the long run, ensuring the balance of the insurance portfolio, ensuring the appropriate level of qualification of employees of insurance companies, creating a separate unit for financial and economic security, developing new effective advertising strategies, implementing new insurance products (eg. cyber insurance).

Conclusion. Further development of the competitive insurance market of Ukraine is impossible without ensuring financial and economic security of insurance companies in the strategic perspective, which, in turn, requires the development of theoretical and methodological provisions and practical recommendations for modernizing economic relations in the field of insurance and economic security. With the spread of digital and behavioral economic models, insurers face an important task of building a quality policy of strategic management of financial and economic security, which should be based on maintaining their proper financial condition, ensuring financial reliability and stability in the long run and tactical perspectives.