MODERN APPROACHES AND CHALLENGES IN INSURERS' RISK MANAGEMENT

Abstract

The article focuses on the problem of risk management of insurance companies, which, on the one hand, given the specifics of their activities, are designed to ensure protection of property interests of legal entities and individuals and, through insurance instruments, manage various risks that negatively affect sustainable social development, and, on the other hand, as business entities, are themselves exposed to risks associated with their operational, financial and investment activities. The purpose of the article is to substantiate the theoretical foundations and organizational and legal framework for risk management of insurers in Ukraine, and to identify ways to optimize this process in the context of current challenges. To achieve this goal, the article used such methods as generalization and grouping, analysis and synthesis, statistical methods, induction and a problem-oriented approach. It is determined that risk management in the insurance business covers two key areas: management of risks accepted for insurance in order to minimize insurance payments and management of risks of economic activity aimed at reducing losses associated with making inefficient management decisions. It is substantiated that in recent years, financial institutions providing insurance services in Ukraine have been forced to counteract the risks caused by a complex set of factors, among which the key ones are the decline in economic activity due to the COVID-19 pandemic and the devastating consequences of the full-scale Russian invasion, tighter regulation of insurance activities and increased competition from technology companies. Effective risk management of insurers in the context of economic and security instability requires addressing gaps in the insurance of military, political, investment and other risks, the introduction of digital tools and technologies, and active public-private partnerships. The successful transformation of the risk management system depends on the synergy of the innovative capacity of insurance companies, targeted government support, an appropriate regulatory environment, and the ability of the insurance business to adapt to the dynamic challenges of today.