MECHANISM OF FINANCIAL AND ECONOMIC SECURITY MANAGEMENT OF INSURANCE COMPANIES

Abstract

The article is devoted to the institution of insurance as a means of insurance protection of the interests of all economic subjects. The article defines the main essential characteristics of the financial security of insurance organizations. Attention is also paid to the definition of the insurance company’s financial security mechanism, which is a set of methods, levers and tools used by the subjects of the insurance company’s financial security system to improve the nature of financial security and provide financial, organizational and informational support for analytical characteristics. The structure of the insurance company’s financial  security management mechanism is determined, which includes such indicators of the level of financial security as: capital adequacy, risks of insurance activity, liquidity, solvency, financial stability and reliability, as well as profitability. Methodological stages of the process of managing financial and economic security of an insurance company are shown, as well as methods of its management in conditions of reduced financial and economic security. The article states that the success of insurance companies depends on the principles that characterize: the availability and placement of capital, the efficiency of its use; acceptability of the liability structure, financial independence and degree of financial risk; acceptability of the structure ofassets and the level of production risk; optimality of the structure of the sources of formation of working capital; investment attractiveness and solvency of the insurance company; risk (insolvency) of the business entity; margin of its financial stability.Based on the analysis, the article offers recommendations for improving the mechanism of managing the financial and economic security of insurance organizations, which will allow the introduction of the latest insurance products, thanks to which companies will be able to successfully carry out insurance activities, be capable, and ensure the fulfillment of their obligations to consumers of insurance services.