BANKRUPTCY PROBLEMS OF INSURANCE COMPANIES DURING THE GLOBAL WORLD CHANGES

I. G. Honcharenko

Abstract


Relevance of the article is that the bankruptcy of insurance companies are becoming quite common in Ukraine, and their result is economic, financial and social instability in the country and reduce of public confidence in the different types of financial institutions. The most significant reasons that led to the establishment of detected in the insurance sector trends are: political and economic instability, lack of effective regulation of insurance companies, the decline in public confidence in the insurers and the rejection of the use of insurance products and services, inability of companies to adapt the new conditions of management, lack of equity, excessive propensity to risk management, currency restrictions, lack of reinsurance services, lack of relevant information for management decisions, loss of markets in the eastern region and Autonomous Republic of Crimea, fraud by staff and customers.

The are suggested the following ways to stabilize the level of financial stability of insurance companies and improve the results of their activities for preventing their bankruptcy: additional capitalization of companies by foreign capital, improve of information transparency of insurers taking measures to improve their image and reputation, increasing of regulatory requirements for performance indicators, stabilization of public confidence in insurance companies through improved quality of service and promotion services in the media.


Keywords


insurance company; bankruptcy; liquidation; financial stability; financial market.

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References


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DOI: https://doi.org/10.18371/fcaptp.v1i24.128332

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