|
1/2021
125
advantages in attracting investments, partners, clients
[1, p. 118].
The analysis of the financial condition of insurance
companies is based on the analysis of their financial
statements. Based on the information contained in the
reports, you can calculate a significant number of absolute
and relative indicators of the financial condition of the
insurance company [2, p. 85—86].
The peculiarity of the insurer’s activity determines the
originality of the insurance process, at the entrance and exit
of which there is money, which is only temporarily delayed
by the insurer and which is paid by the insured in advance.
This feature requires certain guarantees regarding
the ability of the insurer to be liable for its obligations to
policyholders.
One of the guarantees is the financial reliability of the
insurer, which is related to its tariff, financial, investment
and reinsurance policy.
Financial reliability characterizes the insurer’s ability
to meet its insurance obligations under insurance and
reinsurance contracts.
Signs of financial reliability of insurance companies are
the availability of financial resources for development as a
market player (financial reliability) and solvency.
The financial reliability of insurance companies is
ensured by the following factors:
1) the amount of own funds;
2) balanced insurance portfolio;
3) insurance tariff rates;
4) the amount of insurance reserves, adequate to the
amount of commitments;
5) placement of insurance reserves;
6) reinsurance.
The insurer’s solvency is the insurer’s ability to meet its
obligations. The insurer’s liabilities consist of
two groups:
1) external liabilities, ie liabilities to policy-
holders, financial institutions, reinsurers, the
budget;
2) internal obligations are obligations to
founders, representative offices and branches,
employees.
The financial condition of the insurance
company as a complex concept that is a
consequence of the interaction of all elements
of the system of financial relations of the
company is determined by a set of economic
factors and characterized by a system of
indicators that reflect the availability, location
and use of financial resources.
Therefore, the financial condition of the
company is understood as its ability to finance its
activities. Optimization of the financial condition
is one of the conditions for the successful
development of the company in the future,
and the deterioration of the financial condition
indicates the threat of its possible bankruptcy.
Analysis of the activities of insurance companies can be
defined as a thorough study of the activities of both individual
insurers and their totality in competitive environment aimed
at functional support of insurance management. A wide
range of users is interested in a thorough and objective
analytical work, but the initial demand for such information
is created by the insurance companies themselves in the
person of their managers and owners.
Depending on the subject and objectives of financial
analysis, there are external and internal analysis.
External analysis is performed by external entities,
including regulatory authorities. Internal analysis is
performed by the insurer for its own needs and on the basis
of independently developed indicators and criteria. External
analysis is based on accounting data prepared by the insurer.
Internal analysis, in contrast to external, additionally
uses accounting and management data and is more accu-
rate and efficient in terms of identifying factors that affect
the financial condition and potential of the insurer. In ad-
dition, internal analysis allows you to take into account the
specifics of the activity, use specially prepared data and fo-
cus on the most important indicators.An important step in
analyzing the financial condition of insurance companies
is to assess the overall changes and check trends toward
growth or decline in absolute performance.
The first group
consists of general absolute indicators based on the volume
of activity. The value of absolute indicators is used to assess
the scale of activity and determine the company’s position
in the insurance market. The dynamics of these indicators
makes it possible to monitor development trends, changes
over time.
Figure 1 shows the 19 most important general indica-
tors, of which 10 correspond to financial activities and 9 —
insurance.
Do'stlaringiz bilan baham: |
