In the current conditions of the Ukrainian economy, which is characterized by crisis phenomena and frequent changes in legislation, the insurance organizations are facing a number of difficulties in maintaining their financial sustainability. Moreover, these processes take place under the increased requirements for solvency of insurers. However, a significant part of domestic insurance companies is financially unstable, which is conditioned not only by the lack of funds, but also by the low level of management. This situation hinders the further development of the insurance market in Ukraine and has a negative impact on all areas of the domestic financial system and prevents it from successful integration into the European financial field. In order to address this problem, it is necessary to distinguish the key groups of risks that affect the financial sustainability of insurance organizations, among which there are the following: insurance, strategic, market risk, risk of inefficient capital structure, risk of limiting the insurance company’s liquidity, tax risk, investment risk, operational risk, the risk of ineffective organizational structure of the enterprise, and information risk. It should be noted that under conditions of changing environment, the impact of these risks only increases, and therefore the task of minimizing the impact of these risks on the activities of insurance companies is highly important. Accordingly, the authors of the article proposed a four-stage strategy to manage the financial sustainability of the insurance company, the purpose of which is to identify the risks of limiting the insurer’s financial sustainability, their qualitative and quantitative assessment, as well as the development and implementation of appropriate measures to minimize and eliminate unacceptable consequences.
Asset price bubbles are a unique combination of economic and psychological factors. They occur in different countries with different cultural and economic developments. The study of this issue remains relevant because even increased regulation does not solve the problem of asset price bubbles. In this brief review of two bubbles, it was shown that, using the examples of Japan and Ukraine, it is possible to identify both general and specific factors and characteristics of such price bubbles. It is necessary to distinguish the stages of price bubbles formation, because each stage has its own specifics. At the stage of the bubble formation, common factors for both countries were the lack of regulation and the absence of financial stress over a long period; specific factors for Japan were financial liberalization and the absence of cases of bankruptcy of financial institutions over a long period; for Ukraine were characterized by the following factors, namely lack of financial regulation, lack of experience with financial bubbles, economic recovery after a long period of uncertainty, growth of household incomes and formation of over-positive expectations, increase in bank lending to households combined with its absence in the past. During the bubble inflation phase, the common factors were lack of disclosure, positive expectations, aggressive banking, lower lending standards, and rising profits specific factors for Japan are reducing the balance of payments surplus, providing incentives for the yen appreciation, easing monetary policy, changes in fiscal policy, the need to coordinate U.S., Japanese and European policies to maintain global economic stability, taxation and regulatory specifics, easing monetary policy; For Ukraine, such factors were the growth of the real estate market, the inflow of foreign investment, and access to international capital markets. At the peak of the bubble, the common factors were euphoria, virtually unlimited access to financial resources, and a boom in asset prices. At the stage of the bursting of the bubble, the common characteristics were a sharp fall in prices, a sharp fall in demand, the collapse of the securities market, the use of monetary policy instruments; specific to Japan –«The Lost Decade», particular to Ukraine –the end of real estate mortgage lending, the disappearance of the emerging market for mortgage-backed securities. In turn, understanding the factors and characteristics of asset price bubbles at each stage allows for better policy decisions.
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