Use and formation of financial results in insurance companies of Ukraine

Abstract

Insurance in Ukraine is one of the specific types of entrepreneurial activity, and its appearance is connected with the abolition of the state monopoly. To study the current state of the insurance market of Ukraine, it is necessary to conduct a reasonable analysis of the financial results of all types of insurance, which in turn makes it possible to make coordinated financial decisions of insurers regarding the solution of the main problems and coordination for further development. The main criteria for ensuring the stable activity of the insurer are disclosed. The concept of financial resources of an insurance company as an indicator of the efficiency of its activity, as well as the main sources of financial resources, is defined. The principles of managing the financial stability of the insurance organization and the group of factors that affect financial stability are considered. An analysis of the relative indicators of financial stability of insurance companies of Ukraine for the period 2017–2022 was carried out and the main shortcomings of their work were revealed. It was emphasized that the following were the negative factors that affected the financial stability of insurance companies of Ukraine: increased dependence on external sources of financing (loss of autonomy); an increase in receivables, which led to the withdrawal of current assets from circulation; an increase in financial risk due to an imperfect diversification system; decrease in maneuverability of own capital and insufficient number of reserves. The mechanism of managing the financial stability of the insurance organization is characterized and the main criteria for ensuring the stable activity of the insurer are highlighted. A list of measures aimed at improving the financial stability of the insurance company is outlined, namely, it is necessary to ensure effective risk management, development of innovative products and technologies, increase in financial literacy of the population, as well as creation of favorable conditions for the development of insurance business in Ukraine. Ultimately, the insurance market is an important element of the country's financial system. The development of the insurance market in Ukraine should be based on the principles of financial stability and rational use of the resources of insurance companies.