R. Pikus, PhD in Economics, Professor, M. Balytska, PhD student Taras Shevchenko National University of Kyiv, Kyiv, Ukraine FINANCIAL STABILITY OF INSURANCE AND ITS SOURCES OF SUPPORT

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The article describes theoretical aspects of determination of financial stability of insurance companies of Ukraine. It was found the main factors that influence the financial stability of insurance companies. Influencing factors are classified into internal and external and the effects of these factors on insurers’ activities are presented. The main criteria of financial stability of insurance companies were deeply analysed and the most significant were chosen: sufficient amount of equity capital, the optimal tariff policy, balanced insurance portfolio, secure and effective reinsurance program, sufficient amount of insurance reserves for future payments, optimal investment management of insurance reserves and high solvency of an insurance company. Basic directions of provision and maintenance of financial stability of insurance companies in post-crisis period were pre­sented. The main problems of provision and maintenance of financial stability of insurance companies were outlined and recommendations for its strengthening were provided.

Keywords: insurance company, insurer’s financial stability, solvency of the insurance company, the sources provide the insurer’s financial stability.

Date of submission 05.03.2016

DOI: http://dx.doi.org/10.17721/1728-2667.2016/180-3/1

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