Financial sustainability management of the insurance company: case of Ukraine
In the current conditions of the Ukrainian economy, which is characterized by crisis phenomena and frequent changes in legislation, the insurance organizations are facing a number of difficulties in maintaining their financial sustainability. Moreover, these processes take place under the increased...
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| Format: | Article |
| Language: | English |
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LLC "CPC "Business Perspectives"
2018-11-01
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| Series: | Investment Management & Financial Innovations |
| Subjects: | |
| Online Access: | https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/11225/imfi_2018_04_Pikus.pdf |
| _version_ | 1818029253989498880 |
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| author | Ruslana Pikus Nataliia Prykaziuk Mariia Balytska |
| author_facet | Ruslana Pikus Nataliia Prykaziuk Mariia Balytska |
| author_sort | Ruslana Pikus |
| collection | DOAJ |
| description | In the current conditions of the Ukrainian economy, which is characterized by crisis phenomena and frequent changes in legislation, the insurance organizations are facing a number of difficulties in maintaining their financial sustainability. Moreover, these processes take place under the increased requirements for solvency of insurers. However, a significant part of domestic insurance companies is financially unstable, which is conditioned not only by the lack of funds, but also by the low level of management. This situation hinders the further development of the insurance market in Ukraine and has a negative impact on all areas of the domestic financial system and prevents it from successful integration into the European financial field. In order to address this problem, it is necessary to distinguish the key groups of risks that affect the financial sustainability of insurance organizations, among which there are the following: insurance, strategic, market risk, risk of inefficient capital structure, risk of limiting the insurance company’s liquidity, tax risk, investment risk, operational risk, the risk of ineffective organizational structure of the enterprise, and information risk. It should be noted that under conditions of changing environment, the impact of these risks only increases, and therefore the task of minimizing the impact of these risks on the activities of insurance companies is highly important. Accordingly, the authors of the article proposed a four-stage strategy to manage the financial sustainability of the insurance company, the purpose of which is to identify the risks of limiting the insurer’s financial sustainability, their qualitative and quantitative assessment, as well as the development and implementation of appropriate measures to minimize and eliminate unacceptable consequences. |
| first_indexed | 2024-12-10T05:16:45Z |
| format | Article |
| id | doaj.art-25cf0a318be1418c888fda30327c0951 |
| institution | Directory Open Access Journal |
| issn | 1810-4967 1812-9358 |
| language | English |
| last_indexed | 2024-12-10T05:16:45Z |
| publishDate | 2018-11-01 |
| publisher | LLC "CPC "Business Perspectives" |
| record_format | Article |
| series | Investment Management & Financial Innovations |
| spelling | doaj.art-25cf0a318be1418c888fda30327c09512022-12-22T02:00:57ZengLLC "CPC "Business Perspectives"Investment Management & Financial Innovations1810-49671812-93582018-11-0115421922810.21511/imfi.15(4).2018.1811225Financial sustainability management of the insurance company: case of UkraineRuslana Pikus0Nataliia Prykaziuk1Mariia Balytska2Ph.D. (Economics), Professor, Taras Shevchenko National University of KyivDoctor of Economics, Associate Professor, Taras Shevchenko National University of KyivPh.D. Student, Taras Shevchenko National University of KyivIn the current conditions of the Ukrainian economy, which is characterized by crisis phenomena and frequent changes in legislation, the insurance organizations are facing a number of difficulties in maintaining their financial sustainability. Moreover, these processes take place under the increased requirements for solvency of insurers. However, a significant part of domestic insurance companies is financially unstable, which is conditioned not only by the lack of funds, but also by the low level of management. This situation hinders the further development of the insurance market in Ukraine and has a negative impact on all areas of the domestic financial system and prevents it from successful integration into the European financial field. In order to address this problem, it is necessary to distinguish the key groups of risks that affect the financial sustainability of insurance organizations, among which there are the following: insurance, strategic, market risk, risk of inefficient capital structure, risk of limiting the insurance company’s liquidity, tax risk, investment risk, operational risk, the risk of ineffective organizational structure of the enterprise, and information risk. It should be noted that under conditions of changing environment, the impact of these risks only increases, and therefore the task of minimizing the impact of these risks on the activities of insurance companies is highly important. Accordingly, the authors of the article proposed a four-stage strategy to manage the financial sustainability of the insurance company, the purpose of which is to identify the risks of limiting the insurer’s financial sustainability, their qualitative and quantitative assessment, as well as the development and implementation of appropriate measures to minimize and eliminate unacceptable consequences.https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/11225/imfi_2018_04_Pikus.pdfinsurancemanagementrisksolvencysustainabilityUkraine |
| spellingShingle | Ruslana Pikus Nataliia Prykaziuk Mariia Balytska Financial sustainability management of the insurance company: case of Ukraine Investment Management & Financial Innovations insurance management risk solvency sustainability Ukraine |
| title | Financial sustainability management of the insurance company: case of Ukraine |
| title_full | Financial sustainability management of the insurance company: case of Ukraine |
| title_fullStr | Financial sustainability management of the insurance company: case of Ukraine |
| title_full_unstemmed | Financial sustainability management of the insurance company: case of Ukraine |
| title_short | Financial sustainability management of the insurance company: case of Ukraine |
| title_sort | financial sustainability management of the insurance company case of ukraine |
| topic | insurance management risk solvency sustainability Ukraine |
| url | https://businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/11225/imfi_2018_04_Pikus.pdf |
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