Ways to Ensure the Financial Sustainability of Insurance Companies and Increase its Efficiency

Abstract

Insurance companies are one of the main links in the financial system, along with other financial institutions, in particular, banks, investment companies, leasing companies. A common feature of all financial institutions is that each of them is engaged in the formation and management of special funds. However, financial institutions differ in their areas of activity. The concept of financial stability is inextricably linked with the concept of "solvency". In order for an insurance company to unconditionally fulfill its obligations under the law or contracts, it must achieve a "solvency margin", an increase in assets relative to liabilities.