Management of Financial Stability of the Insurance Company

The article is aimed at defining the theoretical foundations of management of financial stability of the insurance company; carrying out an analysis of indicators; developing directions of improvement of financial position on the example of insurance companies of Ukraine. The article discloses the main criteria for ensuring a stable activity of the insurer. The notion of financial stability of the insurance company as an indicator of its efficiency, as well as the principles of financial stability of the insurance company are defined. Principles of financial stability of the insurance organization and a group of factors influencing financial stability are considered. The relative indicators of financial stability of insurance companies of Ukraine during the period of 2017–2019 are analyzed and the main shortcomings of their work are identified. It is emphasized that negative factors which influenced financial stability of insurance companies of Ukraine became the following: increase of dependence on external sources of financing (loss of autonomy); increase in receivables, which resulted in the removal of current assets from the turnover; increased financial risk due to the imperfect diversification system; reduction of own capital manoeuvrability and insufficient reserves. The mechanism of management of financial stability of the insurance organization is characterized and the main criteria for ensuring stable activity of the insurer are allocated. The list of measures directed towards improving financial stability of the insurance company is outlined. Ultimately, the outcome of the proposed measures should be increased solvency, increased equity, balancing the tariff policy and the insurance portfolio, reducing the level of dependence on external sources of funding and risks.