Financial Reliability of Insurance Companies: Conceptual Framework

The financial soundness of insurance companies is a guarantee of the stability of the insurance market and effective protection of policyholders' interests. As an integral factor of viability, financial reliability reflects the insurer's real ability to fulfill its obligations and ensure strategic development in conditions of increased uncertainty, necessitating its scientific understanding. The article aims to deepen the theoretical and conceptual foundations of the insurer's financial reliability by developing the author's approach to interpreting its essence and components in today's conditions. The research methodology includes the following methods: dialectical cognition, systemic analysis, theoretical generalization, comparison, scientific abstraction, structural-logical analysis, and the graphical method. Based on the analysis of the multifaceted nature of the insurer's financial reliability, the author substantiated that the insurer's financial reliability should be considered as an integral economic characteristic of the insurance company's activities, reflecting its ability to stably and continuously fulfill all obligations undertaken, effectively manage financial resources and risks, adapt to changes in the external and internal environment and ensure long-term development based on a combination of financial soundness, financial security, solvency, financial stability and non-financial factors of trust and management. The key determinants of financial reliability are the insurer's solvency, financial stability, and financial security. The results of the study show that the insurer's solvency is a functional manifestation of reliability in the ability to timely and fully fulfill financial obligations; financial soundness forms the financial basis of the insurer's functioning and ensures the ability to maintain financial balance in the face of environmental changes; financial security performs protective and preventive functions aimed at minimizing threats and risks, creating institutional conditions for sustainable development; financial stability reflects the resulting state of balance of indicators and the ability to ensure continuity of activities and fulfillment of obligations.