SIMULATION OF FINANCIAL ACTIVITY OF INSURANCE COMPANIES IN CONDITIONS OF RISK INSURANCE

Abstract

The article considers the use of methods for the analysis of insurance market indicators. The insurance market of Ukraine is one of the effective tools for guaranteeing the development of the state economy. The aim of the research in the article is to develop proposals for improving the analysis of insurance segments by modeling.

The main problems hindering its development are the lack of a perfect legal framework, low level of income and trust in insurance companies, instability of insurance companies, which is primarily due to the lack of management specialists. In society, the economy, insurance companies have an important role in protecting individuals and legal entities from incurring unforeseen losses in the event of an insured event. The reliability of the insurance company and consumer confidence in it is the key to the development of the insurance market. However, low problems in insurance companies slow down its development, make it opaque and uncompetitive, do not allow the development of new types of insurance. For the development of the insurance market, a new model is proposed, which requires creative management decisions based on sound mathematical calculations for the analysis of past-present-future and formed on the knowledge of mathematics, computer science, statistics, probability theory and more.

The model is a formalized description of an economic phenomenon or process, the structure of which is determined by both the objective properties of the object of study and the subjective target nature of the study itself. The model reflects the analysis of the functioning of the insurance market and the main players in it, they use various forms of mathematical equations, dependencies, as well as a graphical representation of the results.

The correlation-regression model used in the article reflects the dependence of the market share of a particular type of insurance on the level of net payments. The model allows to analyze each type of insurance, understand the functioning and development of the insurance market, identify unpromising types of insurance, predict the development of new types of insurance, set marginal criteria of supply and demand in the insurance market, determine the general direction of updating the insurance market. It is of practical importance for management decisions to policyholders, insurers, the Insurance Market Regulator and other players.