The economic essence of the efficiency of management of insurers

Abstract

The relevance of ensuring effective management of the insurer, which is in the sphere of interests of various stakeholder groups, is substantiated. All participants in the insurance process and the national regulator, shareholders are interested in implementing management of the insurer in compliance with the requirements of effectiveness and efficiency.

The purpose of the article is to develop the author's approach to understanding the economic essence of effective insurance management based on the use of methods of scientific generalization, analysis and synthesis, induction and deduction.

Methods. The methods of scientific generalization, analysis and synthesis are used in the study of theoretical provisions of insurance to build a theoretical construct of the concept of "insurer management efficiency" in the relationship of all three component categories "efficiency", "management", "insurer" and their derivatives "insurer efficiency", "efficiency management" and "insurer management".

Results. A theoretical construct of effective management by an insurer has been constructed. The construct of effective management by an insurer is based on three conditions. First, the features of insurance activity in accordance with the law; second, the enhanced requirements for the activities of an insurer by the NBU and the need to fulfill a set of requirements; third, insurers are private business entities that operate on a commercial basis in order to make a profit.

Conclusions. The author proposes a comprehensive definition of the concept of “efficiency of insurer management”, which focuses on the specifics of insurers’ activities as a set of management actions (planning, organization, control and analysis) of the management entity aimed at achieving the goals of the activity, including sufficient solvency and maximum results from insurance and investment activities at a certain level of resources and insurance premiums for the purpose of sustainable development of the insurer under the influence of internal and external factors.