OPTIMIZATION OF THE LEVEL OF INSURANCE REINSURANCE PROTECTION ON THE EXAMPLE OF ACTIVITY PrJSC «UJSIC ASKA»

Abstract

The analysis of insurance activity of PrJSC «UJSIC ASKA» is considered in the article in the aspect of reinsurance protection and determination of its optimal level on the basis of the used integrated economic-mathematical model. Reinsurance in insurance activities on the market is a type of insurance. The main activities of the researched insurance company are the provision of insurance and insurance-related services. The purpose of this article is to study the elements of the insurance company's strategy in the market through the formation of an integrated mechanism for assessing reinsurance protection through the calculation of its optimal level on the example of PrJSC «UJSIC ASKA». The actuality of the article is to form a systematic approach to building an effective mechanism for assessing the reinsurance protection of the insurer in terms of detailed preliminary analysis of the company's financial condition, in particular through assessing the insurance portfolio, gross and net insurance premiums, and insurance premiums transferred to reinsurance PrJSC «UJSIC ASKA», the company's solvency margin and the impact of all insurance risks on the reinsurance operation in order to accurately calculate the optimal level of reinsurance protection at the reporting date. Negative and positive factors that affect the insurance company have been studied and it has been found that the types of insurance that remain on the insurer's retention are characterized by a significant disproportion in the distribution, which adjusts the optimal level of reinsurance protection. Methods of analysis and synthesis, research method, optimization method in the system of economic and mathematical modeling are used. To implement this integrated model, the MS Excel program "Solution Search" was used. The results of the simulation on the example of the activities of PrJSC «UJSIC ASKA» revealed that the reduction of reinsured premiums will have a significant impact on other indicators of the company. This will lead to an increase in net premiums and, consequently, an increase in the risks that will remain on the insurer's maintenance. The result will be an increase in net losses on insurance premiums, and due to a decrease in reinsurance, the insurance company will receive lower commissions from reinsurers. It is assumed that the costs of running an insurance company should not change significantly. The insurer's investment income is expected to increase due to the increase in investment resources. As a result, the company will receive a significant pre-tax financial result, from which it will pay the highest income tax in recent years. To improve the financial results of the insurance company in the future it is recommended to reduce its reinsurance.