Abstract
Relevance of the article is that the bankruptcy of insurance companies are becoming quite common in Ukraine, and their result is economic, financial and social instability in the country and reduce of public confidence in the different types of financial institutions. The most significant reasons that led to the establishment of detected in the insurance sector trends are: political and economic instability, lack of effective regulation of insurance companies, the decline in public confidence in the insurers and the rejection of the use of insurance products and services, inability of companies to adapt the new conditions of management, lack of equity, excessive propensity to risk management, currency restrictions, lack of reinsurance services, lack of relevant information for management decisions, loss of markets in the eastern region and Autonomous Republic of Crimea, fraud by staff and customers.The are suggested the following ways to stabilize the level of financial stability of insurance companies and improve the results of their activities for preventing their bankruptcy: additional capitalization of companies by foreign capital, improve of information transparency of insurers taking measures to improve their image and reputation, increasing of regulatory requirements for performance indicators, stabilization of public confidence in insurance companies through improved quality of service and promotion services in the media.
Highlights
Over the past few years the global economy has undergone a global change
The bankruptcy of financial institutions is becoming quite common in Ukraine, which has economic, financial and social implications at the macro level, and the chosen topic of research is timely and relevant
The purpose of the article is to study the reasons, the consequences of the bankruptcy of modern insurance companies and identify ways to minimize this phenomenon in the financial market of Ukraine
Summary
Over the past few years the global economy has undergone a global change This circumstance has negatively influenced the domestic economic environment of Ukraine. The bankruptcy problem of insurance companies was investigated by both domestic and foreign researchers, it proves its topicality and urgency. V. Lytvyn constructs models to predict the bankruptcy of insurance companies in Ukraine in the post–crisis period [3], L. The variability of the external environment and domestic realities of business activities on the financial market make further research in this area topical. The purpose of the article is to study the reasons, the consequences of the bankruptcy of modern insurance companies and identify ways to minimize this phenomenon in the financial market of Ukraine. The phenomenon of bankruptcy and liquidation of insurance companies on the domestic financial market is becoming widespread. The number of insurance companies had a rapid tendency to decrease, during 9 months of 2016 compared to 2015, the number of companies decreased to 38 [14]
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