ASSESSMENT OF PROFITABILITY OF INSURANCE COMPANIES
Abstract
In the context of an active process of European integration, it is important for the country to improve the financial capabilities of the insurer. Accordingly, the substantiation of profitability indicators of insurance companies was identified as the main method of assessing the effectiveness of activities. Therefore, the aim of the article is to generalize the importance of profitability as a determining indicator of assessing the financial results of management of insurance companies. The study was conducted using the following general and special methods: systematic, comprehensive approach – generalization of the need to assess the profitability of the insurance company; coefficient method – for comparison and interpretation of actual data on the assessment of the profitability of the insurance company; tabular-graphic method – for visual display of dynamics and structure of separate indicators. The object of the study was selected TOP-5 insurance companies in the domestic market. Approbation of the assessment of profitability indicators on the basis of empirical data revealed the degree of influence of the most important factors on the financial and economic activities of companies. It is proved that the profitability indicators of insurance companies make it possible to comprehensively assess not only the financial results of the insurance company, but also to characterize one of the aspects of the financial condition of the insurer. The rating of insurance companies on profitability indicators was developed in order to make objective decisions about the efficiency of companies in the insurance market. The study revealed the reasons for the negative results of some insurance companies, which indicates the need to improve certain aspects of their activities. Therefore, it was expedient to develop and propose a list of measures to improve the efficiency of insurers, namely the improvement of the management system. Based on the study, it was determined that profitability is one of the main indicators for assessing and monitoring the functioning of the insurance company. Relevant results will allow in the future to assess the cost and identify possible options for the development of the insurer.
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