METHODOLOGICAL APPROACHES TO ASSESSING THE FINANCIAL RELIABILITY OF INSURANCE COMPANIES

Abstract

The insurance sector is currently developing amid heightened economic uncertainty, military-political risks, and European integration processes. Under these conditions, improving scientific and methodological approaches to comprehensively assessing insurers' financial reliability as a foundation for insurance market stability has become essential.
This study aims to systematically analyze and classify existing methodological approaches to evaluating the financial reliability of insurance companies, identify their advantages and limitations, and substantiate directions for improving this framework in line with international standards.
The article examines existing methodological approaches to evaluating insurers' financial reliability in the context of domestic market transformation and regulatory harmonization with European standards (Solvency II). It demonstrates that traditional ratio-based and regulatory methodologies remain fragmented and fail to capture the multidimensional nature of financial reliability. The necessity of adapting methodological tools under risk-based supervision to systematically assess three core components – solvency, financial stability, and financial security – is substantiated. The study proposes a comprehensive assessment methodology that integrates quantitative indicators with qualitative evaluations of corporate governance, risk management, internal control, and audit.
Systematizing existing approaches confirms the need to transition from isolated ratio analysis to a comprehensive risk-based framework. Combining quantitative metrics of solvency, financial stability, and security with qualitative governance assessments establishes an effective foundation for implementing Solvency II requirements. Practical application of this approach enables the early identification of financial imbalances, increases diagnostic objectivity, and supports strategic managerial decisions to ensure the long-term financial stability of insurance companies.