THEORETICAL AND METHODOLOGICAL APPROACHES TO ASSESSING THE SUSTAINABILITY OF AN INSURANCE COMPANY

Issues of sustainable development of insurance organizations are key in the context of ensuring long-term protection of the property interests of citizens, entrepreneurs, corporations, and the state from risks. Challenges generated by the external environment have an impact on all areas of the functioning of insurers: the cost of capital is increasing, insurance portfolio losses are growing, and the investment attractiveness of the insurance industry and the effective demand for insurance services are decreasing. The article offers an analysis of methodological approaches to defining the concept of sustainable development of an insurance organization as a multi-component concept. The authors propose for discussion the author’s point of view on the component structure of the concept of sustainability of development of an insurance organization, and substantiate the choice of indicators characterizing the sustainability of development of the insurer. The authors propose a component structure of the concept of sustainability of development: financial sustainability, digital sustainability, market sustainability, environmental sustainability, external sustainability. To assess the sustainability of an insurance organization, a model for calculating integral indices characterizing the level of development of individual components of the insurance organization’s sustainability is presented. The weighting coefficients of indicators characterizing individual components of the sustainability of development of insurance organizations were calculated using the hierarchy analysis method. According to the authors, this approach allows us to identify the most significant indicators for each component, changes in which as a result of certain management decisions have an impact on the sustainability of the insurance organization`s development. Based on the assumption of an equal influence of the components on the sustainability of the insurer’s development, a formula for calculating the integral indicator for assessing the sustainability of the development of an insurance organization is proposed. The model for assessing sustainability of development can be used by the management of insurance organizations when predicting systemic risks of insurance entities.

development sustainability, insurance organization, hierarchy analysis method, sustainable development, component structure, integral indicator, financial sustainability, digital sustainability, market sustainability, environmental sustainability, external sustainability

Vasyukova L. K., Gogyan E. A., Sokolova E. D., Teryaeva A. S. Theoretical and methodological approaches to assessing the sustainability of an insurance company. Biznes. Obrazovanie. Pravo = Business. Education. Law. 2024;3(68):133—138. DOI: 10.25683/VOLBI.2024.68.1089.