Assessment of the features of the formation and use of financial resources by foreign insurance companies

Abstract

Purpose. The article is devoted is to explore the experience of leading US and UK insurers in the formation and use of financial resources in order to identify current trends, major challenges and prospects. Methodology of research. Achievement of this goal is accomplished through the following general scientific and special methods of research: grouping, comparison, balance, systematization and generalization. Findings. According to the analysis of the structure of sources of formation and directions of use of financial resources of the leading international insurance companies of the USA and Great Britain in dynamics their tendencies and peculiarities of development are determined, including with application of requirements of Solvency II. Practical value. The article examines the experience of formation and use of financial resources of leading foreign insurance companies, including the application of the requirements of Solvency II, identifies such features of the formation of their financial resources, which provide significant growth of investment potential in the future and entry into the world insurance market, formulated proposals for enhancement the level of capitalization and risk reduction of insurance companies, taking into account the requirements of Solvency II. Keywords: financial resources of foreign insurance companies, sources of formation and directions of use of financial resources, structure and dynamics, requirements of Solvency II. REFERENCES 1. Bland, D. (1998). Strakhovanye: pryntsypы y praktyka [Insurance: principles and practice]. Moskva : Fynansy y statystyka [in Russia]. 2. Vnukova, N. M. (2009). Strakhuvannia: teoriia i praktyka: Navch. Posibnyk [Іnsurance: Theory and Practice: Educ. Manual]. Kharkiv : Burun Knyha [in Ukrainian]. 3. Havryliak, T. S. (2015). Zarubizhnyi dosvid formuvannia finansovoho potentsialu investytsiinoi diialnosti strakhovykh kompanii // Naukovyi visnyk NLTU Ukrainy [Foreign experience of formation of financial potential of investment activity of insurance companies]. Lviv : Visnyk NLTU Ukrainy [in Ukrainian]. 4. Directive 2009/138/EC of the European Parliament and of the Council of (25 November 2009) on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II) (recast) (Text with EEA relevance): https://eur-lex.europa.eu/legal-content/EN/TXT/?uri. The European parliament. 5. Khomynych, Y. P., Dyk, E. V. (2018). Orhanyzatsyia strakhovoho dela: uchebnyk y praktykum dlia sredneho professyonalnoho obrazovanyia [Organization of insurance business: a textbook and a workshop for secondary vocational education]. Moskva : Yzdatelstvo Yurait [in Russia]. 6. Svitlychna, O. S., Stashkevych, N. M. (2015). Upravlinnia finansamy strakhovykh orhanizatsii: Navch. pos. [Financial management of insurance organizations] Odesa : Atlant [in Ukrainian]. 7. Tkachenko, N. V., Nats. bank Ukrainy, Un-t bank. spravy. Zabezpechennia finansovoi stiikosti strakhovykh kompanii: teoriia, metodolohiia ta praktyka : monohrafiia [Ensuring financial stability of insurance companies: theory, methodology and practice: monograph] Cherkasy : Cherkas. TsNTEI [in Ukrainian]. 8. Annual Report (2018). MetLife, Inc. [Electronic resource MetLife, Inc.] https://s23.q4cdn. com/579645270/files/doc_financials/2018/2018-Annual-Report-FINAL.PDF (accessed 12 November 2019) [in United States]. 9. Experimental financial statistics for insurance using Solvency II regulatory data – enhanced financial accounts (UK flow of funds) (2018) [Electronic resource Office for National Statistics] https://www.ons.gov.uk/economy/nationalaccounts/uksectoraccounts/articles/experimentalfinancialstatistics/ 2018-04-30 (accessed 12 November 2019) [in United Kingdom]. 10. Insurance Fact Book (2019.) [Electronic resource Insurance information Institute] https://www.iii.org/sites/default/files/docs/pdf/ insurance_factbook_ 2019.pdf (accessed 12 November 2019) [in United States]. 11. Lal, Chugh C. (2006). Demutualization in the Life Insurance Industry : A Study of Effectiveness / Lal C. Chugh, Joseph W. Meador // Review of Business Winter, University of Massachusetts Boston [in United States]. 12. Stock Quote & Chart MetLife, Inc. [Electronic resource MetLife, Inc.]. https://investor.metlife.com/stock/stock-quote-and-chart/default.aspx (accessed 12 November 2019) [in United States]. Published: 2020-03-26