FINANCIAL MANAGEMENT STRATEGIES TO ENSURE STABILITY OF INSURANCE COMPANIES AMID CRISIS SITUATIONS

DOI: 10.31673/2415-8089.2024.010014

Abstract

In the face of economic crises and emergencies, insurance companies are tasked with maintaining stability to safeguard their operations and the interests of policyholders. This article explores various financial management strategies employed by insurancecompanies to ensure stability during crisis situations. The relevance of this topic is underscored by the crucial role insuranceplays in mitigating financial risks for individuals, businesses, and society at large.
The aim of this research is to analyze the effectiveness of different financial strategies used by insurancecompanies to overcome crisis situations. Such strategies encompass a range of measures, including robust risk management systems, balanced investment policies, adequate capital reserves, and active asset and liability management methods. By examining these strategies, this study aims to offer insights into how insurancecompanies can enhance their resilience and adaptability amid turbulent economic conditions.
Through empirical analysis and case studies, this research elucidates the advantages and drawbacks of implementing various financial management strategies during crisis situations. It identifies key success factors and challenges faced by insurancecompaniesstriving to maintain stability amidst uncertainty. Additionally, the study evaluates the impact of these strategies on financial performance, solvency, and overallresilience of insurancecompanies.
The conclusions drawn from this research underscore the importance of proactive financial management in ensuring the stability of insurancecompanies during crises. It also emphasizes the significance of adopting a comprehensive and predictive approach that integrates risk identification, mitigation, and contingency planning into insurers’ core operations. On the other hand, the research findings highlight the crucial role of regulatory oversight and industry collaboration in fostering a stable and resilientinsurance sector.
Conducting further scientific research on financial management strategies to ensure stability of insurancecompanies during crisis situations holds significant potential for enhancing resilience in this sector. Assessing the effectiveness of various risk management methods, such as hedging and diversification, will provide better insights into reducing financial instability. Investigating the role of regulatory framework and its impact on the stability of insurancecompanies during crises can offer important recommendations for policymakers and industry practitionersalike.

Keywords: insurance; financial management; emergencies; risks; forecasting; crisis.

REFERENCES
1. Bogrinovtseva L.M., &Chamor G.S. (2019). Napryamky vdoskonalennya finansovoyi stiykosti strakhovykh kompaniy Ukrayiny [Directions for improving the financial stability of insurancecompanies in Ukraine]. Collection of scientific works of the University of the state fiscal service of Ukraine. 2, 20–32. DOI: 10.33244/2617-5940.2.2019.20-32
2. Vasechko L. I. (2021). Stratehichni napryamy zabezpechennya finansovoyi stiykosti pidpryyemstva [Strategic directions for ensuring the financial stability of the enterprise]. European scientific journal of economic and financial innovations. 1 (7), 26–40. DOI: https://doi.org/10.32750/2021-0103
3. Holovina V.V., &Shiryanyan L.V. (2018). Upravlinnya hroshovymy potokamy strakhovoyi kompaniyi [Management of cashflows of the insurance company]. Bulletin of Odessa national university. Series: Economics. 23 (7), 161–164.
4. Dyadyura K. V., Yankovskyi V. A. (2021). Antykryzove upravlinnia strakhovymy kompaniiamy: sutnisnyі skladnyk ta suchasnyi stan strakhovoho rynku Ukrainy [Anticrisis Management of Insurance Companies: Essence Component and Current State of the Insurance Market in Ukraine]. Eastern Europe: Economics, business, and management. 2 (29), 120–126. DOI: https://doi.org/10.32782/easterneurope.29-18
5. Yokhna M. A., Kovalko O. O., Melnyk D. M. (2024). Efektyvnistryzyk-menedzhmentudliasub’yektivhospodarskoidiialnosti: vyklykysohodennia[Efficiency of Risk Management for Business Entities: Challenges of Today]. Academic visions. 27, 1–20. DOI: http://dx.doi.org/10.5281/zenodo.10579040
6. Larina Ya. S. (2018). Metodychni pidkhodyshcho do zabezpechennia ekonomichnoi stiikosti pidpryiemstv na osnovi marketynhovoho monitorynhu [Methodical Approaches to Ensuring Economic Stability of Enterprises Based on Marketing Monitoring]. Problems of system approach in economics. 3 (1), 93–98.
7. Lashchik I., Mytrovtsi M. (2023). Antykryzove upravlinnia strakhovymy kompaniiamy [Crisis Management of Insurance Companies]. Halician economic herald of Ternopil national technical university. 81 (2), 83–88. DOI: https://doi.org/10.33108/galicianvisnyk_tntu2023.02.083
8. OrelYu. L., Kulinich O. V. (2023). Vplyv derehuliatsii biznesu na povoienne vidnovlennia ekonomiky Ukrainy: publichno-upravlinskyiaspekt [The Impact of Business Deregulation on Post-War Economic Recovery of Ukraine: Public Administration Aspect]. Scientific notes of V.I. VernadskyTaurida national university. Series: Public administration and administration. 34, 32–39. DOI: https://doi.org/10.32782/TNU-2663-6468/2023.6/06
9. Prystupa L. A., Vozovyk I. A. (2020). Kontseptualni zasady finansovoho upravlinnia strakhovoiu kompaniieiu v suchasnomu biznes-seredovyshchi [Conceptual Principles of Financial Management of an Insurance Company in the Modern Business Environment]. Bulletin of Khmelnytskyi national university. Series: Economic sciences. 2, 125–129. DOI: 10.31891/2307-5740-2020-280-2-23
10. Sevidova D. O., Markova S. V., Kovalenko N. M. (2018). Antykryzovastratehiiayaknevid’iemnachastynaupravlinniastrakhovoiukompaniieiupidchaszdiisnennia ZED [Crisis Strategy as an Integral Part of InsuranceCompany Management During Foreign Economic Activity]. Scientific bulletin of Kherson state university. Series: Economic sciences. 1 (30), 147–150.
11. Tatarin N. B., Polovko D. M. (2023). FinansovyirynokUkrainy: analizsuchasnohostanu, zahrozy, problemytaperspektyvy [Financial Market of Ukraine: Analysis of the Current State, Threats, Problems, and Prospects]. Galician economic herald. 83 (4), 78–88. DOI: https://doi.org/10.33108/galicianvisnyk_tntu2023.04.078
12. Cherednichenko A. O., Vasechko L. I., Ramskyi A. Yu. (2023). Stratehichne upravlinnia finansovoiu stiikistiu subiektiv hospodariuvannia v suchasnomu ekonomichnomu seredovyshchi [Strategic Management of Financial Stability of Business Entities in the Modern Economic Environment]. European scientific journal of economic and financial innovation. 1 (11), 112–124. DOI: http://doi.org/10.32750/2023-0109
13. Swiss Re Press-release 17.12.2023. Elektronnyiresurs. Retrieved from: https://www.swissre.com/media/press-release.html
14. Onovleno vymohy do platospromozhnosti, obliku dohovoriv ta zakhystu informatsii strakhovykiv. Novyny NBU (2023). [The requirements for solvency, accounting of contracts and protection of information of insurers have been updated. NBU news]. Novyny NBU. 31.12.2023. Retrieved from: https://bank.gov.ua/ua/news/all/onovleno-vimogi-do-platospromojnosti-obliku-dogovoriv-ta-zahistu-informatsiyi-strahovikiv
15. Natsbank pohodyv iz Minekonomiky ta Minfinom kontseptsiiu z oboviazkovym strakhuvanniam voiennykh ryzykiv [The National Bank agreed with the Ministry of Economy and the Ministry of Finance on the concept of mandatory insurance of war risks]. Interfax Ukraine. Elektronnyi resurs. Retrieved from: https://interfax.com.ua/news/economic/965825.html