SPECIFICS OF APPLYING OF RISK MANAGEMENT METHODS IN INSURANCE ACTIVITY

Abstract

This article presents the features of the application of risk management methods in insurance activities, as well as identifies ways to reduce risks and fears by choosing the best option for managing an insurance company. The stage on the basis of which the system of risk management is created is analyzed, and also application of alternative tools of transfer of risks in insurance in insurance activity is offered. The presented methods of insurance risk management allow the insurance company to reduce the number of previous divisions on the way to the desired result. The article presents the need to implement a risk management mechanism, emphasizes the main problems of development of the domestic insurance market. The analysis of the current state of the insurance market in Ukraine is given and the ways of its improvement are offered. Currently, the issue of risk management is quite relevant, and this applies to all areas of human activity, all that surrounds it. The topic of risk in insurance is at the peak of relevance also because without the risk of the existence of insurance is not possible. Reducing risk can improve not only the financial condition of the insurance company, but also the insurance market as a whole. Thus, effective management of insurance risks and risks that arise during the conduct of insurance activities is one of the prerequisites for ensuring the stability and solvency of the insurance company. The insurance market of Ukraine is currently in a state of crisis, as the quality of insurance products is unfortunately gradually deteriorating, the reason being unscrupulous insurance companies that evade the payment of insurance indemnities. Risks that arise during the provision of insurance services do not allow insurance companies to fully perform their tasks and responsibilities, so there is a need to study and intensive exploration of risk management, that is risk management, as well as the use of risk management methods in insurance. The purpose of this article is to study the risks in insurance, risk management methods, as well as existing methods of risk management in insurance.