Analysis of the competitive capacities of companies participating in the insurance market

Abstract

The insurance market has an important role in gaining the competitive advantage of a national economy. One characteristic of an insurance company is to provide insurance coverage by accumulating funds inform of insurance premiums to insurance reserves. This underestimates the importance of enhancing competitiveness and capacity of insurance companies, while they significantly affect the economic performance of each insurer.

Considering significant externalities in the insurance business and quality enhancement of insurance sendees, intensification of the mechanisms for raising and use of funds, to provide guaranteed insurance are critically important problems These problems have been even more urgent due to the increasing liberalization of the financial market, as this causes more stringent requirements for the competitiveness of insurance companies.

The purpose of the study is to review theoretical aspects of system evaluation of management of insurance companies’ competitiveness and capacities, to define indicators and construct an evaluation algorithm.

Analysis of the insurance company’s competitiveness covers a broad spectrum of quantitative and qualitative factors affecting its performance indicators, financial stability first and foremost. While evaluating the insurance company's competitiveness, one should bear in mind that, an important factor in the company competitiveness is the competitiveness of customer services.

The notion of the competitiveness of an insurance company is analyzed, with outlining it’s under lying factors; conventional indicators for evaluating the insurance company’s competitiveness are given; an algorithm for comprehensive evaluation of the competitiveness of an insurance company is constructed. Measures to enhance the competitiveness of insurance services are proposed, based on the three aspects: rendering of insurance services; maintenance of insurance contracts; improvement of benefit payments.