Problems of formation of financial potential of development of insurance companies
Journal Title: Економіка. Фінанси. Право - Year 2019, Vol 1, Issue
Abstract
The article deals with the general state of the insurance market of Ukraine in terms of determining the preconditions for the formation of financial development potential in insurance companies. The theoretical approaches to the definition of the concept of the financial potential of the insurer development and the methodology for calculating this indicator are considered. An integral estimation of financial potential of development of one of the leading insurance companies in the Ukrainian market is calculated. On the basis of this, a common tendency for all insurers with Ukrainian capital is determined, which is the continuous accumulation of financial development potential instead of its use. The reasons and consequences of observing the position of accumulation of financial potential of development by insurance companies in the Ukrainian market are determined. The constituent elements influencing the formation of financial development potential are considered, namely: the size of own capital, the volume of the formed insurance reserves, the size of insurance payments and the amount of total expenses of the insurer. Determined which components make the financial development potential more attractive and, on the contrary, reduce it. The problems raised in the process of formation of financial potential of development of insurance companies are highlighted. First of all, with regard to the correctness of the interpretation of the concept of financial development of the insurance company. The lack of practical methods of calculating the indicator of financial development potential is substantiated. The importance of effective management of the components of the financial development potential has been proved to ensure an increase in its size, namely compliance with the statutory norms of the adequacy of equity capital and the size of insurance reserves. Recommendations for increasing the size of the insurance company's equity, increasing the volume of insurance reserves and managing the size of insurance payments, as well as reducing the expenses of the insurance company are given.
Authors and Affiliations
Tetiana Yevheniivna Tereshchenko, Mariia Tarasivna Suk
Keywords
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