Year: 2024
Type: article
Abstract: Ukrainian insurance companies are steadily moving towards the European development framework, facilitated by the adoption of a series of radical regulatory documents by the National Bank of Ukraine (NBU) concerning the supervision of their activities based on a risk-oriented approach. This, in turn, requires insurance companies to make fundamental changes to their risk management processes and substantiate their choice of a viable business model capable of ensuring their long-term. The aim of the article is to determine the level of risks and the related profitability of business models of insurance companies of Ukraine, as well as to develop recommendations for their transformation based on proactive risk management. The research is based on the use of a set of such methods as analysis, comparison, grouping, correlation. Various methodical approaches to distinguishing the business models of insurers are revealed and their brief description is given. An analysis of risks for business models of life and non-life insurance was carried out based on the system of selected indicators. An analysis of the correlation relationship between the ratio of insurance payments to insurance premiums (dependent variable) and independent variables was carried out. Proposals aimed at implementing innovative business models based on proactive risk management have been developed. Formulated and empirically tested hypotheses regarding the reduction of the scale of the insurance business under the influence of the unfavorable economic situation, the war in Ukraine and the strengthening of regulatory requirements for insurers; different levels of risks are inherent in the business models of non-life and life insurers; the introduction of innovative business models for insurers should be based on the conceptual principles of proactive risk management
Source: SCIENTIA FRUCTUOSA
Authors: Nataliya SHULGA, Yehor MAIDANYK
Institution: State University of Trade and Economics
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4402315974