Bozhenko A. Reinsurance in providing the financial security of the insurance market

Thesis is stressed on theoretical approaches to defining the essence of the financial security of the insurance market, investigating the role of reinsurance as a factor of providing the financial security of the insurance market. The general features of current conditions, problems and prospects of Ukrainian reinsurance development are identified in the thesis. It is proved the necessity of mutual integration of reinsurance in the international insurance market. Scientific and methodical approach to the assessment of the financial security of the insurance market were been implemented in this manuscript. The author has focused attention on the dualistic nature of indicators that affect the financial security of the insurance market, that is there is no one indicator which can be identified as positive or negative. It is proposed multiplicative model of quantitative and qualitative evaluation of the financial security of the insurance market based on Harington adaptation model by calculating the integral index as the ratio of the opportunities and risks of the insurance market. The cyclical component influence of reinsurance to the financial security of the insurance market has been analyzed. Scientific and methodological approach to compare the cyclical nature of reinsurance in Ukraine and the financial security of the insurance market in different stages allows to determine compliance the cycle stages of the financial security of the insurance market with the indicators of reinsurance in the same period of time, and its impact on financial security. It is developed a scientific and methodical approach to the optimization of net retention of insurance risks with a view to provide the minimum level of the financial security that allows insurance companies to form its insurance portfolio based on reinsurance as a key factor of providing the financial security. The quantitative formalization the coefficient of the financial stability of companies in the insurance market as a function depending on the share capital, the amount of money in reserve funds, retained earnings and the maximum amount of liability were been implemented in this manuscript. As a result of research, the author has proposed predictive norm of net retention ratio at which the company's financial situation does not deteriorate. Thesis is stressed on proposition of methodical bases of improvement supervision of reinsurance activities that directly affect the financial security of the entire state because due to the success of the reinsurance is guaranteed the safety of the primary insurer. Research result is a mechanism for organizing and structuring costs of conducting supervisory activities both in monetary and time measurements, using methods of network planning, thereby reducing the likelihood of problematic situations through their biases at the initial stage.