Management of insurance activity at PJSC NASC Oranta
Students Name: Penkovska Oksana Romanivna
Qualification Level: magister
Speciality: Finance, Banking and Insurance
Institute: Institute of Economics and Management
Mode of Study: full
Academic Year: 2021-2022 н.р.
Language of Defence: ukrainian
Abstract: In the theoretical part of the first section the theoretical bases of interpretation of insurance both in the scientific literature and in legislative acts were resulted. Scholars in most of their interpretations agree that insurance is, first of all, a system of economic relations between specific economic entities, where on the one hand are insurers, and on the other - insurers. In the analytical part of the first section, a general analysis of the financial condition of the insurer was conducted and much attention was paid to the analysis of financial ratios and insurance portfolio of PJSC Oranta. According to the analysis in 2018. the currency of the balance was 783 969 thousand UAH, and in 2019. was virtually unchanged, the relative error was -0.1%. In 2020 there was a positive increase in the balance by 144 472 thousand UAH. (18.45%). The "positive" features of the balance sheet are the following: growth of the balance sheet currency; increase in the share of current assets; increase in the share of equity. Net earned insurance premiums amounted to 2018. 671 938 thousand UAH, in 2019 increased by 134 463 thousand UAH. (20.01%), and for 2020. still increased by 68 393 thousand UAH. (8.55%). Net losses on insurance payments were equal to 2018. 248 949 thousand UAH, for 2019 increased by UAH 54,492 thousand. (21.89%), and for 2020. increased by UAH 29,711 thousand. (9.79%) Net loss in 2018 31 671 thousand UAH, and in 2019. already net profit amounted to 55 thousand UAH. In 2020 net profit amounted to 45 786 thousand UAH. After conducting a ratio analysis, it was found that all liquidity indicators had a positive upward trend. As for profitability indicators, they reflect the ratio of different types of profits to costs and for them the call sign is the growth dynamics. In general, such indicators of the company for 2018-2020. grew positively. Having conducted a detailed analysis of the insurance portfolio, we can say that the company’s largest insurance services are compulsory civil liability insurance (MTPL). The volume of such insurance tended to increase gradually. Significantly smaller volumes of services are provided under the green card, CASCO, fire insurance, insurance of tourists, which in general also had a positive upward trend. Only on the green card in 2020. we observe a decrease. In 2018-2020. the company served mainly individuals. Note that the level of payments for individuals tended to increase from 27.04% in 2018. to. 36.89% in 2020, while for legal entities on the contrary decreased from 67.71% in 2018. up to 47.1% in 2020 In general, we note a positive increase in bonuses and payments for both individuals and legal entities. In the second section, a SWOT analysis of the activities of Oranta PJSC was performed, the insurance portfolio was optimized and the forecast of insurance premiums and insurance payments of the insurer was presented. The SWOT analysis identified a combination of strengths and weaknesses, opportunities and threats of the insurer. All these combinations were combined into a common SWOT matrix of strategic directions of development of PJSC "Oranta". Next, the calculation of the optimal insurance portfolio of the insurer was carried out taking into account a number of limitations. As of 2020 The insurance company provided 4 main types of insurance services: CASCO insurance, property insurance in case of fire, OTSPV (car insurance), Green Card. The distribution of the insurance portfolio in these areas was as follows: CASCO insurance - 6.24%, property insurance in case of fire - 9.36%, OTSPV (car insurance) - 65.95%, Green Card - 11.04%. While the modeled new structure of the company’s insurance portfolio is different and has the following form: CASCO insurance - 5.31%, property insurance in case of fire - 12.64%, OTSPV (autocivilka) - 69.25%, Green Card - 8.28% . Having made a forecast of insurance premiums and insurance payments. According to calculations, insurance premiums are growing and, accordingly, insurance payments are growing. At the end of 2021, the forecast value of net insurance premiums will be UAH 970,170.9 thousand, according to the forecast for the end of 2021. insurance payments is 372611.42 thousand UAH. According to the forecast, the level of payments will be 38.4%. The third section of the work provided recommendations for improving the financial condition of the insurer. The first recommendation was to determine the profitability of the new and the risk of the insurer according to the previously calculated optimal insurance portfolio. Changing the insurance portfolio to the optimal level of Oranta PJSC will have a positive impact on the insurance company’s income. The largest change in gross profit after optimization was due to the increase in property insurance in case of fire and OTSPV. Taking into account the results of the study, it would be appropriate to optimize the insurance portfolio, as it will increase gross profit by 37,622 thousand UAH. It should be noted that the results of optimization of the insurance portfolio of PJSC "Oranta" have a somewhat simplified interpretation, and the decisions made by management should be based on studies of market trends in general and in individual regions. The second recommendation was the introduction of new modern technologies. That is the digitalization of the insurance company. It was determined that the insurance company makes almost no effort to attract new customers. It was recommended to pay attention to advertising on social networks and pay more attention to advertising through search engines. Additional specialists were involved and appropriate equipment was purchased to promote the company’s website. The last recommendation was to improve the bonus-malus system. It is determined that one of the most risky types of insurance in the structure of the insurance portfolio of PJSC "Oranta" is CASCO. It was decided to improve the system of discounts and surcharges to the insurance rate. It is proposed to take into account the number of small and large offenses in the "bonus-malus" system. According to calculations with the improvement of the "bonus-malus" system, despite the decrease in the number of contracts, insurance payments decreased more rapidly than insurance premiums, and therefore PJSC "Oranta" earned an additional 2035 thousand UAH. from improving the "bonus-malus" system. At the end of the section the calculation of economic results of design decisions was carried out. According to calculations, we observe a positive impact of the proposed measures on the financial condition of PJSC "Oranta". There was an increase in profitability, a more balanced insurance portfolio and a decrease in the level of insurance payments for some types of insurance and in general. Key words: insurance, insurance portfolio, insurance activity, insurance tariff 1. Zheliznyak RY, Bonetsky OO, Zhulevich MI Development of the world insurance market in the conditions of digitalization. Modern Economics. 2019. № 17 (2019). Pp 100-104. DOI: https://doi.org/10.31521/modecon.V17(2019)-16 2. Kots OO Branches features of models of credit policy of business entities in Ukraine / OO Kots, NB Yaroshevich, OR Svatyuk // Market Infrastructure. - 2019. - Issue 29. - P. 530-538. 3. Alieksieiev I., Mazur A., Moroz A. 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