−
level of business activity that characterizes the efficiency of using the
resources of the insurance company and is the ratio of insurance premiums to the
balance of the currency;
−
endurance of the company, that is, its ability to work in an intensive mode
over a long period, which can be estimated using the ratio of the sum of insurance
premiums from the current to the previous years.
A significant number of parameters for assessing the insurer's competitive ability
allows it to comprehensively assess its ability to compete with direct competitors and
defines the ability to effectively prevent possible losses.
Now in the developed countries of the world has become dominated by the idea
that the management of capital and solvency of financial and credit institutions should
be based on an assessment of the risks of their activities. In doing so, assess the
financial and non-financial factors of the insurer's activities. In accordance with this
postulate, a new system for assessing the solvency of insurance companies and capital
adequacy criteria called Solvency 2 in the EU countries.
Under this system, risks are grouped into:
−
identification risk - the risk of inadequate perception by owners and
management of the situation taking place in the company, its position in the insurance
market, assessment of the financial capacity of the company to fulfill its obligations;
−
risk in the management of assets and liabilities - the risk of inconsistency in
the coverage of urgent liabilities with assets, the risk of poor assets, risky increase in
the capitalization of insurance companies;
−
risk of monitoring and management - the risk of making false management
decisions, the risk of fraud by management and staff, the risk of error in controlling the
insurer's compliance with solvency and financial sustainability standards;
−
risk of reporting and information risk - the risk associated with incorrect
information about the situation in the company owners, new investors, clients. The risk
of information wars, "black PR" by competitors of the insurance company;
−
infrastructure risk - the risk associated with errors in the processing of data
in computer systems and other company communications, the risk arising from the
transfer of information and interaction in relations between the company's, company's
and insurance intermediaries;
−
risk in relation to clients - the risk of fraud, falsification of insurance claims,
lawsuits from clients due to improper performance by the insurance company of its
obligations.
Practical aspects of competitiveness management of the insurance company.
In practice, the subject of an entity faces the challenge not only to determine its
competitiveness at the present time and to react in a timely manner to changes, but also
to determine its financial potential for obtaining reliable data on the real state.
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