Trends and risks of modern insurance

Abstract

The article is devoted to the analysis of trends in the development of the insurance market and the risks that accompany it. The factors of influence are investigated, the classification of risks of insurers on development of appropriate management measures is given. The specific nature of the risks associated with the digitalization of information in the insurance industry and the various options for protection against them are considered. Any activity of enterprises in the domestic market can be characterized by an increased degree of state or systematic risks, the influence of which in the modern world is compounded by the new risks for business of translating information into digital form. The functional purpose of an insurance business is to protect other entities from the possible risks, but the insurance business itself is also exposed to certain risk factors that may impede the performance of insurance activities. The functioning of the insurance market at the present stage is accompanied by new risks that may affect the effectiveness of insurers. It is this that raises the relevance and importance of this issue on the systematization of insurance business risks and the recommendations for managing them. The purpose of this article is to review the trend of development of the modern insurance market, to systematize risk factors and to develop recommendations for risk management of the insurance market at the present stage. The main reasons for which risk situations arise in the operation of insurance companies are external factors, namely the actions of competitors, insurers, business partners. Exacerbation of competition increases the dependence of performance indicators of the insurer on the level of competitiveness of the institution or its services.