INSURANCE COMPANY STRATEGY IN RISK ENVIRONMENT IN THE CONTEXT OF RESOURCES DEFICIT
Abstract
The article states that managing an insurance company in conditions of economic instability requires high quality risk management, which is the most important element in the investment strategy of the insurer. The investment strategy of the insurance company should be aimed at overcoming the investment downturn during the crisis and recession of Ukraine's economy, restructuring the insurance business of the company, as well as creating conditions for financial stability of the insurance company in the long run. It is determined that the implementation of the insurance company's investment strategy is possible in the domestic financial market only after the stage of operational restructuring i.e., increasing the investment attractiveness of the insurer through internal sources, restructuring of assets and debt. The process of developing a strategy for the insurance company's behavior in terms of risk and lack of financial resources should be based on the quality of management of its investment portfolio from the standpoint of its balance and liquidity, profitability and level of financial risk. The article states that in the shortage of financial resources conditions, risk environment, undeveloped financial market infrastructure the issue of forming an effective investment strategy of an insurance company, development of practical recommendations for forming an optimal investment portfolio becomes especially relevant. To this end, the paper highlights the experience of developed countries in choosing the investment strategy of the insurance company in conditions of limited financial resources and high risk, identified features of the investment portfolio of the insurer depending on its specialization. The characteristic of the main tasks of the insurance company on formation of an optimum investment portfolio in the conditions of modern challenges are proposed. The content and tasks of the Asset-Liabilities Management methodology in the formation of the optimal investment portfolio of the insurance company are determined. Based on the modeling, practical recommendations for the formation of the optimal investment portfolio for Ukrainian insurers in the face of a shortage of financial resources and a risky environment have been developed.
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