Solvency Evaluation of Insurance Companies: Case of Ukraine

The article reveals topical issues of assessing the solvency of insurance companies in conditions of uncertainty and constant economic turmoil. The purpose of the article is to substantiate the need to develop an integral indicator for assessing the solvency of individual insurers using the example of Ukraine, which will allow signaling counterparties as accurately as possible about the emergence of difficulties in the company with the repayment of its obligations in the current period. To achieve this goal, the proposed indicator was tested to check the level of solvency of individual insurance companies in Ukraine. In particular, an assessment was made of the solvency level of two insurance companies that have already gone bankrupt, and one insurer that is successfully operating in the Ukrainian market. During the research, there are wide use of the following methods: critical analysis of literary sources – in the study of the category “solvency of an insurance company”; systematization and expert assessments – when constructing an integral assessment of the level of solvency of insurers; generalization of actual data and statistical data processing – when testing the proposed integral indicator to assess the level of solvency of three insurance companies in Ukraine. The obtained results of assessing the solvency of insurers demonstrated the effectiveness of the predicted integral indicator and its ability to promptly signal difficulties in maintaining proper solvency. The proposed integral index for assessing the level of solvency of an insurance company more adequately and timely demonstrates the problems with the solvency of companies than early warning tests, which are so popular in many countries.