Development and implementation of innovative approaches to financial management of insurance companies under martial law

Abstract

The purpose of the study is to comprehensively assess the practical effectiveness of innovative approaches to financial management in insurance companies and to develop scientifically grounded recommendations for their implementation, taking into account the specifics of the domestic insurance market operating under the crisis conditions of a prolonged armed conflict. Methods. The study employed methods of comparative analysis, statistical generalization, structural-dynamic analysis, and a systems approach to evaluating the financial performance of insurance companies for the period 2022–2024. The empirical base of the study comprised official data from the National Bank of Ukraine, reporting from the League of Insurance Organizations of Ukraine, analytical reviews from industry publications, and statistical materials from the Motor Transport Insurance Bureau of Ukraine. To identify trends, absolute and relative deviations of key insurance market performance indicators were calculated. Results. It was established that the implementation of innovative approaches to financial management – digitalization of insurance processes, adaptive pricing, dynamic reserving, and improved risk management systems – ensured the financial stability and competitiveness of insurance companies under martial law conditions. It was found that companies that systematically implemented these tools demonstrated higher financial results and expanded their market share compared to those that limited themselves to the partial application of individual innovations. The growth of the electronic policy share to 69.4% in 2024 indicates an acceleration of the industry’s digital transformation, confirming the transition to a new customer service model and demonstrating the practical effectiveness of new models of insurance business organization. Conclusions. The implementation of innovative approaches to financial management is a prerequisite for maintaining the solvency and competitiveness of insurers under martial law. Promising directions for further research include a quantitative assessment of the effectiveness of individual innovative financial management tools using econometric methods, as well as a comparative analysis of the adaptation strategies of insurance markets in countries that have had experience operating under armed conflict conditions.