Comprehensive Diagnosis of Activity's Economic Indicators to Ensure Insurance Companies' Financial Security
Journal Title: Oblik i finansi - Year 2024, Vol 1, Issue 2
Abstract
The development of the insurance market is accompanied by unstable transitional processes that can create threats and risks of worsening the insurer's financial condition. In this regard, an urgent issue is the comprehensive diagnosis of the economic indicators of the activity of insurance companies to ensure their financial security. The insurer's financial security is a set of measures to eliminate the threats of deterioration of the financial condition to achieve an acceptable level of activity risk during a certain period and ensure the insurer's financial stability before the increase of external and internal threats affecting the financial condition. Threats include factors and processes that can negatively affect the interests of owners and clients and the insurer's financial condition. Therefore, indicators of the insurer's financial security are the most significant financial indicators and parameters (factors) that characterize the insurer's financial condition and financial stability concerning parameter changes (factors). The article aims to develop a methodology for comprehensive diagnostics of insurance companies' economic indicators to ensure financial security. The research methodology is based on the use of insurers' microeconomic indicators. The author's proposals are based on two groups of indicators used in financial analysis: 1) indicators of financial condition and 2) indicators of financial stability and security. Each group comprises 7-8 financial indicators, corresponding criteria, and normative values. It is proposed that diagnostics be carried out in two stages. In the first stage, the financial condition is determined according to the indicators of the first group, and then – in the second stage, it is detailed by analyzing the indicators of financial security (indicators of the second group). The application of the approach presented in the article makes it possible to carry out purposeful work on the diagnosis of economic indicators of activity, to form an independent opinion not only about the insurer's financial condition but also to build the fundamental foundations of ensuring its financial security. It is crucial not only to calculate and compare the dynamics of indicators of the financial condition of insurers but also to assess the degree of their readiness to counter threats correctly.
Authors and Affiliations
Lada Shіrіnyan
Keywords
Related Articles
- EP ID EP741956
- DOI 10.33146/2307-9878-2024-2(104)-94-99
- Views 19
- Downloads 0
Influence of Access to Finance, Human Resource Competence, Information Systems on the Performance of Small and Medium-Sized Enterprises with Organizational Culture as Study Moderating Variable
The purpose of the study is to find out whether such variables as access to finance, human resource competence and information systems can improve the performance of small and medium-sized enterprises in Palembang (Indon...
Carbon Emission Disclosure in Indonesia’s Manufacturing Companies
In Indonesia, the government invites business actors to jointly reduce greenhouse gas emissions through disclosure of carbon emissions. Disclosure of carbon emissions in Indonesia is still voluntary (voluntary disclosure...
Institutional Practices of Retail Accounting
In terms of current economic conditions, purchase and sale of goods is a key aspect of many enterprises’ activity. Thus, income generated to trading goods is an important financial and economic indicator of retailers by...
Місце і роль управлінського обліку в системі бухгалтерського обліку
В умовах інформаційного суспільства перед управлінським обліком постають нові завдання, які вимагають враховувати всю структуровану та неструктуровану інформацію, яка прямо чи опосередковано пов’язана з діяльністю суб’єк...
Sustainability Reporting as Mediation of Factors Affecting Financial Performance: Case in the Mining Sector in Indonesia
The problem of global warming due to environmental pollution has made it necessary for companies to be widely accountable to society about their performance. Therefore, today companies must not only report on the financi...