Management of balance of the insurance portfolio: discourse in the theory and view on modern practice
Journal Title: Visnyk Ternopilskoho natsionalnoho ekonomichnoho universytetu - Year 2016, Vol 2, Issue
Abstract
Different approaches to determine the insurance portfolio are considered and the essence of this definition is clarified. It is established that the insurance portfolio is often understood as the number of insured objects or existing insurance contracts. Rarely the insurance portfolio is understood as the amount of risks taken by insurance and cost obligations of the insurer. The insurance risks are selected as the main element in the part of the insurance portfolio. The essence of insurance risks through specific objects on which made insurance score is clarified and the degree of probability of loss is measured. Also regarding insurance risks there are accepted management solutions designed to overcome the uncertainty, which are belong to public and entrepreneurs. The conditions of providing of balance of the insurance portfolio are determined. It is overviewed that a balanced insurance portfolio should optimally combine types of insurance with varying degrees of risk and uneven incomes. The general insurance portfolio is analyzed using the indexes of net insurance premiums and net insurance payments. It was reviewed as unbalanced through a significant prevalence of car insurance over property insurance and other segments of the insurance market. Basic methods of risk management of imbalance insurance portfolio in the composition of selection of risks by insurance, reinsurance and formation and placement of insurance reserves are characterized. In the selection process of those risks interesting for insurance company the insurance rate is established, franchise value is determined, conditions of the insurance contract is clarified. When using reinsurance insurer retains only part of the insured risk and transmits another part to the second insurer. During the formation and placement of insurance reserves is performed reserving enough money for the timely and full implementation of insurance liabilities and also placement of insurance reserves taking into account the structure of the insurance portfolio. It is concluded, that most development in theoretical and practical dimensions requires issue related with application of different methods of risk management of imbalance insurance portfolio.
Authors and Affiliations
Tetyana Pysmenna
Keywords
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