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

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

Tsvetkova L.I. Moscow State Institute of International Relations (University) of Ministry of Foreign Affairs of Russian Federation, Moscow, Russian Federation

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


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