Insurance Risks Management Methodology

Kartashova Ivanovna,Molchanova Vladimirovna,Axana Turgaeva

doi:10.3390/jrfm11040075

Abstract

The purposes of the study are to substantiate the influence of the specific features of insurance on the set of management accounting objects and to develop a mechanism of preparing the relevant information for insurance risk management. Management accounting allows generating reports, specially prepared for managers of various levels of control (in contrast to financial accounting, which considers information on the basis of general accounting rules). This allows realizing the main goal of management accounting; that is, providing information support for management decisions aimed at maximizing the organization’s profits. The object of research is management accounting in the information system of an insurance company. The stages in the execution of accounting procedures in a management accounting system are defined in the form of a diagram, the features of insurance affecting the organization of management accounting are classified, and an intracompany ledger of the connection between the segments of activity and responsibility centers is developed for insurance companies.

Highlights

In 1992, Russia’s financial and credit system took on a new form (Anosova et al 2008)
The influence of the specific features of the insurance business on the organization of management accounting and the development of the mechanism of formation of the relevant information for the management of the insurance organization has shown the relevance of the chosen topic in both theoretical and practical aspects
The insurance specifics influencing the organization of management accounting are classified

Summary

Introduction

In 1992, Russia’s financial and credit system took on a new form (Anosova et al 2008). Lowering of bank interest rates, diversification of major industries, and changes in legislation in respect of financial risks (Barnes et al 2017) result in changes in the terms of credit and insurance. The process of the formation and improvement of specialized non-bank financial institutions, including insurance companies, continues permanently. In this regard, there is a need to develop new and modify existing methods and techniques of management accounting in insurance, including based on information systems and technologies. This article proposes a new integrated management accounting methodology and shaping of a set of practical recommendations to improve companies’ performance

Literature Review

Materials and Methods

Findings

Conclusions