Bakalova N. Modelling of the activities of insurance companies.

A methodical approach to assessing the economic capacity of an insurance company has been improved, which allows determining its financial condition, identify weaknesses, predict and facilitate the effects of negative phenomena in exogenous and endogenous environments to eliminate negative results and bankruptcy. A forecast model for assessing the relationship between insurance and economic growth has been researched on the basis of direct impact of insurance on economic growth, which in contrast to the existing ones in empirical study allows establishing that such an impact depends on the operating environment of the insurance company. A theoretical and methodological approach to the directive of European Union “Solvency II” in domestic practice has been developed by the author, which, unlike the existing one, requires the introduction of modern risk management procedures. A model of demand for insurance services, based on the developed mechanism of insurance's impact on economic growth has been presented, which allows identifying the main sources of its potential through life insurance, private savings, substitution effects and investment environment. The behaviour models of the insurance services market have been developed taking into account the interaction which, in contrast to the existing ones, allows assessing the impact of endogenous factors on the size and dynamics of market development. A methodological approach to the use of dynamic financial analysis in insurance has been developed by the scientist, which allows making an integrated, holistic and quantitative analysis of risk factors and to study the relationship between factor characteristics, which permits management of insurance companies to freely form development strategies based on the use of mathematical apparatus. A theoretical concept of economic essence of reinsurance taking into account the transfer of all or part of the insured risk with the relevant part of the premiums to another insurance company in exchange for participation in the payment of potential benefits.