+7 925 966 4690, 9am6pm (GMT+3), Monday – Friday
ИД «Финансы и кредит»

JOURNALS

  

FOR AUTHORS

  

SUBSCRIBE

    
Finance and Credit
 

Ensuring investment attractiveness of the insurance industry by planning the expected shareholder profit in the conditions of risk

Vol. 24, Iss. 5, MAY 2018

PDF  Article PDF Version

Received: 27 March 2018

Received in revised form: 10 April 2018

Accepted: 26 April 2018

Available online: 29 May 2018

Subject Heading: Insurance

JEL Classification: G22, G32, G35

Pages: 1247-1256

https://doi.org/10.24891/fc.24.5.1247

Tsvetkova L.I. Moscow State Institute of International Relations (University) of Ministry of Foreign Affairs of Russian Federation, Moscow, Russian Federation
mila-c@yandex.ru

https://orcid.org/0000-0003-1232-956X

Importance Low investment attractiveness of insurance business impedes the expansion of insurance role in economy. The share capital risk level and the provided joint-stock profit do not compile one another. The subject of the work is planning of activity indicators of the insurer in order to level such discrepancy.
Objectives This article deals with conflicts of interests of insurers and shareholders. The paper aims to solve the problems by planning management indicators both formed by shareholders capital and the insurers capital.
Methods The author uses financial model of usefulness assessment of the capital. It takes into account risk and the model of exponential capital growth. The model forms a method of assessment of payment for ensuring interests of both the insurer's principals.
Results The offered technique allows to plan the net-premiums volume under existing contracts. It is necessary for providing the forthcoming obligations of the insurer.
Conclusions and Relevance The research states that such estimation of insurance cost will allow to strengthen reputation of insurance companies and help to attract both consumers and investors.

Keywords: mediation, capital, profitability, profit, tariff structure

References:

  1. Tsvetkova L.I. [The insurance company as an object of business of its shareholders]. Strakhovoe delo = Insurance Business, 2015, no. 4, pp. 18–20. (In Russ.)
  2. Benston G.J., Smith C.W. A Transaction Cost Approach to the Theory of Financial Intermediation. Journal of Finance, 1976, vol. 31, iss. 2, pp. 215–231. URL: Link
  3. Leland H.E., Pyle D.H. Information Asymmetries, Financial Structure, and Financial Intermediation. Journal of Finance, 1977, vol. 32, iss. 2, pp. 371–387. URL: Link
  4. Lel'chuk A.L. [Modern approach to assessment of the solvency of insurance company]. Finansy = Finance, 2013, no. 6, pp. 45–49. (In Russ.)
  5. Voblyi K.G. Osnovy ekonomii strakhovaniya [Bases of economic insurance]. Moscow, Ankil Publ., 1995, 232 p.
  6. Salin V.N., Klochkova A.A. [Reforming an Insurance Company Solvency Control System in the EU Countries]. Finansy: teoriya i praktika = Finance: Theory and Practice, 2005, no. 2, pp. 62–74. (In Russ.) URL: Link
  7. Ulybina L.K., Lipchiu N.V., Okorokova O.A. Formirovanie i otsenka investitsionnoi deyatel'nosti strakhovykh organizatsii: monografiya [Formation and evaluation of insurance companies investment activity: a monograph]. Krasnodar, Kuban SAU Publ., 2012, 253 p.
  8. Natkhov T.V. [Insurance companies as institutional investors on the capital market]. Strakhovoe delo = Insurance Business, 2005, no. 9, pp. 2–11. (In Russ.)
  9. Coase R.H. Firma. Rynok. Pravo [The Firm, the Market and the Law]. Moscow, Novoe izdatel'stvo Publ., 2007, 224 p.
  10. Williamson O.E., Winter S.G. Priroda firmy. K 50-letiyu vykhoda v svet raboty R.Kouza Priroda firmy [The Nature of the Firm: Origins, Evolution, and Development]. Moscow, Russian State Library Publ., 2008.
  11. Limitovskii M.A. Osnovy otsenki investitsionnykh i finansovykh reshenii [Bases of evaluation of investing and financial decisions]. Moscow, Inzhiniringo-konsaltingovaya kompaniya DeKa Publ., 1996, 184 p.
  12. Natenberg Sh. Optsiony: Volatil'nost' i otsenka stoimosti. Strategii i metody optsionnoi torgovli [Option Volatility and Pricing. Advanced Trading Strategies and Techniques]. Moscow, Al'pina Publ., 2015, 539 p. URL: Link
  13. Damodaran A. Strategicheskii risk-menedzhment: printsipy i metodiki [Strategic risk taking]. Moscow, Vil'yams Publ., 2010, 495 p.
  14. Shmautz M., Lampenius N. Deriving the Optimal Amount of Risk Capital for P/L Insurance Companies Utilizing ALM. URL: Link
  15. Knight F.H. Risk, neopredelennost' i pribyl' [Risk, Uncertainty and Profit]. Moscow, Delo Publ., 2003, 360 p. (In Russ.)

View all articles of issue

 

ISSN 2311-8709 (Online)
ISSN 2071-4688 (Print)

Journal current issue

Vol. 30, Iss. 3
March 2024

Archive