The System to Control Performance of Life Insurance Companies as an Information Resource
Kryvytska O. R.

Kryvytska, Olha R. (2019) “The System to Control Performance of Life Insurance Companies as an Information Resource.” The Problems of Economy 1:191–198.
https://doi.org/10.32983/2222-0712-2019-1-191-198

Section: Economic statistics. Accounting and Auditing

UDC 657.631:368.91:368.03

Abstract:
The article studies the organization of control over life insurance companies in two directions: issuance of work permits for insurance companies (organizational (preliminary) control) and current supervision over its implementation (financial control). The purpose and form of organizational control is defined. It is established that the results of organizational control can be considered the first preventive measure that protects potential policyholders from the risk of entering into an agreement with a fictitious insurance company. Attention is focused on the advantages and disadvantages of the current register of financial institutions kept by the National Commission which carries out state regulation in the sphere of financial services markets. It is proposed to clarify the form of displaying information on the registration of financial institutions in terms of its unification by individual subjects of the financial services market, in particular, the compilation of a register of life insurance companies. The importance of monitoring the financial condition of a life insurance company is noted, and the role of early warning tests for its implementation is determined. Given the complexity of the process of assessing the financial condition of the insurer through early warning tests, it is proposed to place information about the results of the assessment in an understandable and easily accessible form on the company’s official website. It is recommended that the insurer supplement the list of mandatory reporting with information on the assessment of the financial condition based on the results of early warning tests. The publication of such information on the official website of the National Commission which implements state regulation in the sphere of financial services markets unifies data on the financial status of all life insurance companies in one place.

Keywords: control, information resource, life insurance company, early warning tests.

Tabl.: 6. Bibl.: 13.

Kryvytska Olha R. – Doctor of Sciences (Economics), Professor, Professor, Department of Finance, Accounting and Audit, The National University of Ostroh Academy (2 Seminarska Str., Ostroh, 35800, Ukraine)
Email: olha.kryvytska@oa.edu.ua

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