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Financial Risk and Profitability Management in Russian Insurance Companies in the Context of Digitalization

Author

Listed:
  • Sergey Viktorovich Ilkevich

    (Department of Management and Innovation, Financial University under the Government of the Russian Federation, 125993 Moscow, Russia)

  • Ekaterina Yevgenievna Listopad

    (Department of Accounting, Analysis and Audit, Financial University under the Government of the Russian Federation, 125993 Moscow, Russia)

  • Natalya Vladimirovna Malinovskaya

    (Department of Audit and Corporate Reporting, Financial University under the Government of the Russian Federation, 125993 Moscow, Russia)

  • Polina Petrovna Rostovtseva

    (Department of English for Professional Communication, Financial University under the Government of the Russian Federation, 125993 Moscow, Russia)

  • Nataliya Nikolaevna Drobysheva

    (Department of English for Professional Communication, Financial University under the Government of the Russian Federation, 125993 Moscow, Russia)

  • Andrei Viktorovich Borisov

    (Law Institute, Department of Criminal Law, Criminal Procedure and Law Enforcement, Russian University of Transport, 127994 Moscow, Russia)

Abstract

The dynamics of the financial reliability of insurers show rather unstable and often unfavorable trends, which indicate an increase in the risks of their financial insecurity and requires searching for reserves to improve their financial condition in the context of digitalization. The aim of the present research is to develop approaches for managing financial risks and profitability in Russian insurance companies in the context of digitalization. Structurally, the study consisted of a comprehensive analysis of the insurance market in the Russian Federation, as well as an identification of the components of the risk management process of insurance companies in the context of digitalization. Documents containing key features of the risk management system were selected for the study. We determined that to optimize the structure of the insurance portfolio, the insurer must regulate its portfolio by increasing the share of insurance receipts for personal insurance, which is highly profitable but occupies a meager share in the insurance portfolio. To do this, it is necessary to carry out active work to expand the insurance field, in particular, in relation to voluntary personal insurance, attracting a significant number of policyholders by conducting explanatory mass work using advertising events and agency-broker networks regarding the need and effectiveness of such insurance. Further research prospects should include proposals for replenishing the insurance portfolio with new types of personal insurance, making adjustments to the tariff policy of insurers for all types of voluntary personal insurance, and determining optimal tariffs.

Suggested Citation

  • Sergey Viktorovich Ilkevich & Ekaterina Yevgenievna Listopad & Natalya Vladimirovna Malinovskaya & Polina Petrovna Rostovtseva & Nataliya Nikolaevna Drobysheva & Andrei Viktorovich Borisov, 2022. "Financial Risk and Profitability Management in Russian Insurance Companies in the Context of Digitalization," Risks, MDPI, vol. 10(11), pages 1-12, November.
    • Handle: RePEc:gam:jrisks:v:10:y:2022:i:11:p:214-:d:970069
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    References listed on IDEAS

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    1. Ayton, Julie & Krasnikova, Natalia & Malki, Issam, 2022. "Corporate social performance and financial risk: Further empirical evidence using higher frequency data," International Review of Financial Analysis, Elsevier, vol. 80(C).
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