TREATS FOR FINANCIAL SECURITY OF INSURANCE COMPANIES

Abstract

Financial security is a fundamental prerequisite for the stable functioning and sustainable development of insurance companies, as their activities are directly related to the assumption and redistribution of risks within the economy. However, the increasing complexity of financial markets, macroeconomic volatility, digital transformation, and intensifying competition have generated numerous internal and external threats that may undermine insurers’ solvency, liquidity, and overall stability. This paper investigates the key threats to the financial security of insurance companies and systematizes them within a comprehensive risk-based framework. The study identifies major financial risks, including insufficient capital adequacy, liquidity imbalances, inaccurate actuarial estimations, investment losses, underwriting risk, and reinsurance dependence, as well as external threats such as regulatory changes, systemic financial crises, inflation, cyber risks, and market concentration. Particular attention is given to the interconnection between operational, investment, and insurance risks and their cumulative impact on financial sustainability.