The concept of adequacy of insurance reserves and its assessment. Analysis of the sufficiency of insurance reserves and directions for their placement Insurance reserves - total

In addition to solvency indicators, reflecting the possibility of fulfilling obligations in the event of deviations from the normal course of activity in the analysis process, it is necessary to determine indicators of the adequacy of insurance reserves. This group of indicators is calculated only at the end of the year and serves to assess the reliability of the reflection of insurance liabilities. It includes the following indicators.

1. Indicator of sufficiency of technical reserves:

Insurance technical reserves (line 520 + line 530 + line 540 f.1)
Insurance premium - net reinsurance (line 080 f.2)

This indicator reflects the sufficiency of funds corresponding to the value of technical reserves in relation to the amount of liabilities expressed in the form of premiums for types of insurance other than life insurance, on their own retention. The maximum size of the standard in accordance with world practice should be more than 100%. In Russia, due to the peculiarities of the formation of reserves and the financial results of insurance activities, exceeding 50% of the level is considered sufficient.

2. Ratio of insurance reserves and equity capital:

Insurance technical reserves (line 520 + line 530 + line 540 f.1)
Own capital (line 490 f.1)

The total volume of insurance technical reserves should not exceed the insurance organization's own funds by more than 3.5 times, otherwise this may adversely affect the financial stability of the insurance organization.

3. Deficit (surplus) of technical reserves
is calculated as the difference between the volume of required reserves and the actually formed reserves. The amount of required reserves is determined as follows:

Average technical reserves for the previous year
Salary insurance premium for the previous year
*
Earned insurance premium.

The earned insurance premium is understood as the totality of income from insurance activities for types of insurance other than life insurance related to the period under review. Earned premium includes premium adjusted for changes in the unearned premium reserve.

Actually formed reserves represent the average value of technical reserves for the year under review. Thus, the indicator reflects the deficiency or surplus of technical reserves formed in the current year compared to the level of the previous year. Sharp fluctuations in the indicator require a more careful consideration of the reasons for their occurrence. The indicator is calculated as a whole and taking into account reinsurers. An analysis of the structure of insurance reserves is given in.

Table 3.17.Structure of insurance reserves of an insurance organization

An analysis of the structure of an organization's insurance reserves shows that total insurance reserves are characterized by a predominant share of loss reserves, the share of which is gradually increasing. As of 01/01/07, the share of losses was 61.4%, and the share of the unearned premium reserve was 37.8%. Other technical reserves and life insurance reserves are not formed in this organization.

The information necessary to calculate the adequacy of insurance reserves is given in, analysis of indicators of their sufficiency - in.

Table 3.18.Data for calculating the adequacy of insurance reserves
for the period 01/01/2005 - 01/01/2007

Table 3.19.Indicators of adequacy of insurance reserves and
solvency of the insurance company
for the period 01/01/2005 - 01/01/2007

Based on the results of analytical calculations, we can conclude that the company's financial position was quite stable in 2004. The high share of equity capital in the structure of liabilities ensured high solvency indicators. Insurance technical reserves have been formed in sufficient volume, in full compliance with the Regulations on the formation of insurance technical reserves. The fulfillment of the indicator of adequacy of insurance reserves indicates full coverage of the amount of upcoming payments under existing contracts in 2004.

The situation changed sharply for the worse in 2005. According to the data, we can conclude that an increase in the collection of insurance premiums (by 114.4%) and insurance technical reserves (by 40.2%) with a decrease in the amount of equity capital (by 18%) had a negative impact on solvency indicators. The sufficiency indicator of insurance technical reserves as of January 1, 2006 turned out to be below the standard value and amounted to only 44%. The remaining solvency indicators maintained their previous fairly high level, but the emerging downward trend threatened to change the current favorable situation, which is what happened next year.

In 2006, the size of technical reserves continued to grow (by 15.8%) and the collection of insurance premiums (by 28.9%), while the amount of equity capital decreased (by 12.9%). Solvency indicators indicate that in 2006 there was a discrepancy between the size of the organization's own capital and the volume of insurance activities.

The solvency margin indicator decreased and as of 01/01/07 amounted to 13%, with a recommended value of more than 0%. In 2005, this figure was 409%. The emerging trend of a rapid decline in the solvency margin indicator can negatively affect the financial condition of the company in the near future.

The ratio of equity capital to premium collection for 2006 decreased by 11 points compared to 2005 and amounted to 24%, while the standard was more than 25%. A significant decrease in the amount of own funds led to insufficient equity capital at a given level of insurance premium collection in the analyzed company.

The ratio of reserves to equity capital increased and amounted to 165% in 2006, with the standard not exceeding 350%. The increase in reserves was due to an increase in the reserve for unearned premiums and the reserve for losses, and the growth rate of reserves for losses was higher than the growth rate for the reserve for unearned premiums. At the same time, the analysis showed a deficit of technical reserves in 2006 compared to the level of the previous year in the amount of 3812 thousand rubles.

A negative trend of deterioration in solvency indicators may lead in the near future to the current insolvency of a given company and undermine its financial stability.

Despite the decrease in loan investments, or perhaps because of it, and also due to the need to reduce its losses in the event of non-repayment of loans, the branch pays great attention to the creation of a reserve to cover possible losses on these operations, taking into account the permission of the National Bank of the Republic of Belarus on the incomplete creation of such. The sufficiency of this reserve is assessed using indicators third group , which includes the coefficients presented in Table 6.5.

Table 6.5

Indicators of adequacy of reserves to cover possible losses

The calculation of the indicators of this group is given in Table 6.6, which allows us to analyze the emerging trends in the creation of reserves, paying attention to how the decision of the National Bank of the Republic of Belarus affected the activities of the branch and the bank as a whole.

Table 6.6

Calculation of indicators of the adequacy of reserves to cover possible losses on loans issued by branch No. 321 of the Belarusbank JSB for 2003.

According to the calculations carried out in Table 6.6, it is possible to characterize each coefficient:

¯ indicator K9 once again confirms that the branch (bank) took advantage of the permission of the National Bank of the Republic of Belarus and undercreates a reserve to cover possible losses on credit transactions by 28.8 percentage points. This means that the branch (in particular) uses this amount to organize effective activities in other areas;

¯ indicator K10 indicates the degree of adequacy of reserves in case of non-repayment of loans. Branch No. 321 of JSB "Belarusbank" creates a reserve for these purposes in sufficient quantities, adhering to exceeding the lower limit (equal to 0.9%) of this coefficient by almost 2 times;

¯ the calculated indicator K11 indicates that the share of loans that are hopeless for repayment in the branch as of 2004 exceeds the recommended optimum by 0.1%;

¯ indicator K12 indicates the share of write-offs from the total volume of non-standard loans, which depends on the distribution of loan investments by risk groups. In the branch this share is 36.8%.

Thus, having studied the indicators of the third group, it is clear that the reserve is created in an incomplete volume for 100% reinsurance of the branch against credit risk, but in a sufficient volume to cover the costs of non-repayment of loans.

The indicators fourth group are called integrated, since their calculation includes some components of the financial ratios of the above groups (Table 6.7).

Table 6.7

Integrated indicators of total credit risk

It is advisable to present calculations of these indicators separately for a more accurate and detailed description. The first indicator (Table 6.8), referred to as the coefficient of quality of credit portfolio management (K13), differs from the indicator of the same name in one of the above-mentioned groups, since it reflects the degree of risk of credit investments in terms of their distribution among credit risk groups, which is made on the basis of data mainly about the duration of overdue credit debt and the quality of loan collateral.

Table 6.8

According to the calculations carried out in Table 6.8, the branch has an ideal state in terms of the quality of loan portfolio management, amounting to 100%. This indicates the correct course in implementing the strategy, credit policy and the high level of qualifications of the staff.

The calculation of indicators K15 and K16 is presented in the form of table 6.9, which allows you to give them an appropriate assessment.

Calculation of the net interest margin ratio taking into account credit risk and the loan loss ratio for branch No. 321 of the Belarusbank JSB for 2003.

As follows from table 6.9, the net interest margin ratio taking into account credit risk (K14) amounted to 9.3%. This indicates that the level of profitability of loan investments in terms of net interest margin decreases by 9.3% due to an increase in loan losses per unit. Let's focus on the loan loss ratio (K15), which reflects the share of practically non-repaid loans. It amounted to 2.3% of the total share of credit investments, which indicates the high reliability of the branch’s activities.

The calculation of indicators K17 and K18, given in table 6.10, allows us to assess the total risk of the branch, taking into account the degree of adequacy of the reserve to cover losses on credit operations.

Calculation of the total credit risk coefficient for branch No. 321 of the Belarusbank JSB for 2003.

According to the calculation indicated in Table 6.10, the total risk coefficient for the branch is 0.97%, which means very good quality of the loan portfolio in terms of repayment and adequacy of the reserve to cover possible losses on credit operations.

Thus, the ratio analysis made it possible to verify that the branch is promising for potential, responsible borrowers. The deviation of some coefficients from the optimum is a consequence of historically established reasons and is being rapidly reduced by the branch in order to further stabilize its activities.

The financial stability of an insurance company is most accurately reflected by relative indicators.

One of the assessment indicators is the adequacy of insurance reserves. This means the adequacy of their structure and size to the accepted insurance obligations in accordance with insurance contracts. Let's take a closer look at them.

K 1 = Amount of insurance reserves / Amount of collected insurance premiums (13)

K 2 = Amount of insurance reserves / Amount of insurance payments (14)

where the amount of collected insurance premiums is line 080 f. No. 2;

amount of insurance reserves - line 520 + line 530 + line 540, f. No. 1;

amount of insurance payments - p. 110 f. No. 2.

By 1st start = (24116+29753+2616) / 87139 = 56485/87139 = 0.65.

To 1con. = (13594+9309+3248) / 61571 = 26151/61571 = 0.42.

The discrepancy between the values ​​under consideration is large, compliance 1 is desirable. The general indicator K 1 (0.65) decreased in 2006 by 0.23, which indicates a negative trend in the activities of CJSC Siberian-Ural Insurance Company,

By 2nd = (24116+29753+2616) / 51376 = 56485/51376 = 1.09.

K 2con. = 26151/48309 = 0.54.

In 2006, K 2 (1.09) is closer to unity and there is greater agreement between the values ​​under consideration; in 2006, K 2 (0.54) decreased by 0.55, which is negative in CJSC Siberian-Ural Insurance Company .

From the point of view of financial stability, the normal proportion between own (SC) and borrowed funds (ZK) is very important; preferably: TrSK>TrZK.

The presence of insurance reserves in the prescribed amount serves as a guarantee of the solvency of CJSC Siberian-Ural Insurance Company and the financial stability of its insurance operations.

The financial side of economic potential is also very important. Financial potential reflects the rationality of the structure of current assets, which means, in particular, the normal provision of current payments, sufficiency of funds, the ability to maintain the existing structure or achieve the desired structure of sources of funds, etc. It is obvious that the economic potential of enterprises with the same composition and property structure, but different financial characteristics, will be different.

CJSC Siberian-Ural Insurance Company faces two main tasks in the financial sector: maintaining the ability to meet its current financial obligations and ensuring long-term financing in the required volumes.

Thus, the financial condition of CJSC Siberian-Ural Insurance Company can be assessed from the perspective of short-term and long-term perspectives. In the first case, the characteristics of its activities are indicators of liquidity and solvency, in the second - financial stability.

The legally defined basis for the financial stability of Siberian-Ural Insurance Company CJSC (insurance rates - insurance premiums, insurance reserves, equity capital, reinsurance) expresses its financial potential.

Consequently, the financial stability of an insurance company can be defined as the potential ability of the insurer to pay off its obligations, linking it with an analysis of the structure of the obligations and funds of the insurance organization.

The financial stability of an insurance organization can be determined through the financial potential coefficient (K fp), calculated as the ratio of the amounts of equity capital and insurance reserves to the volume of net premium:

where SK - equity capital (line 490, f. 1-insurer) SR - insurance reserves (line 590, f. 1-insurer) SPn - net premiums (line 010 + line 080, f. 2-insurer ).

It is accepted abroad that the value of this coefficient should be greater than 5

K FP start = (115119+56485)/87139 = 171604/87139 = 1.969.

K fp con = (114740+26151)/61571 = 140891/61571 = 2.288.

The financial potential coefficient is much different from that recommended abroad; the upward trend in 2006 (2.288-1.969 = 0.319) is associated with a decrease in equity capital and a decrease in the net premium, which is generally a negative point in the activities of CJSC Siberian-Ural Insurance Company " Decrease in the indicator of insurance reserves in 2006 by 30,334 tr. (56485-26151) had a negative impact on the financial potential ratio in 2006 and contributed to its decline.

In the activities of CJSC Siberian-Ural Insurance Company, it is difficult to draw an unambiguous conclusion, but one circumstance should always be kept in mind: the main source of financing is attracted capital. There is no other company like an insurance company that takes money without paying interest on it and returns it not to everyone, but only to those who have had insured events. In fact, here we can talk about financial leverage, which has a huge positive effect in the activities of the insurer.

In analyzing the activities of insurance companies, there is an approach based on the following logic. Insurance reserves, as an assessment of the insurer's obligations, expressed in monetary terms, for upcoming insurance payments, are the main source of financing current assets.

Thus, the attracted part of the capital may prevail over the amount of equity capital. Consequently, when assessing the level of financial leverage, it is necessary to take into account the predominance of the risky nature as the essence of the activities of CJSC Siberian-Ural Insurance Company.

PU FLso = Insurance reserves / Equity capital (16)

PU FLso initial = 56485/115119 = 0.49.

PU FLso con = 26151/114740 = 0.23.

The level of financial leverage in 2005 was close to the recommended level, and in 2006 it decreased by half (to 0.23), which is a negative point in the activities of CJSC Siberian-Ural Insurance Company.

Given the structural relationship between insurance reserves and equity capital, there is a result that can be defined as the financial equilibrium point of Siberian-Urals Insurance Company CJSC. At the same time, this ratio can be considered as an ideal (0.5), which minimizes the risks of financing the insurer’s working capital.

Consequently, in 2006, the risks of financing working capital of CJSC Siberian-Ural Insurance Company increase.

One of the main criteria for assessing the financial stability of an insurer is the compliance of the size of equity capital with the volume of accepted liabilities in the standard amount. Hence, the financial stability of CJSC “Siberian-Ural Insurance Company” should be understood as its financial condition, in which the amount and structure of its own funds ensure a certain level of solvency at any time.

Ensuring the financial stability of Siberian-Ural Insurance Company CJSC is possible subject to certain conditions being met, in particular, the availability of capital free from liabilities; the required value of which should increase with the growth of the volume of insurance operations. The amount of the insurer's equity capital determines the future amount of obligations under concluded insurance contracts. Liability for an individual risk (the maximum amount of the insured amount) can be set at 10% of the equity capital, and the cost of individual objects accepted for insurance does not always allow this condition to be applied. At the same time, due to fierce competition in the insurance market, there is no opportunity for free selection of favorable risks, therefore, the portfolio of Siberian-Ural Insurance Company CJSC may contain risks with excessively high liability, in which the occurrence of just one insured event can be catastrophic for the company who do not have the required funds. To protect itself from possible financial difficulties, CJSC Siberian-Ural Insurance Company resorts to reinsurance.

As defined in the Law of the Russian Federation “On the Organization of Insurance Activities on the Territory of the Russian Federation,” “reinsurance is the activity of protecting by one insurer (reinsurer) the property interests of another insurer (reinsurer) associated with the latter’s acceptance of insurance payment obligations under an insurance agreement (main agreement). . The risk of insurance payment under a life insurance contract regarding the survival of the insured person to a certain age or period or the occurrence of another event is not subject to reinsurance.”

CJSC Siberian-Ural Insurance Company, which has accepted obligations in volumes exceeding the possibility of their fulfillment at the expense of its own funds and insurance reserves, is obliged to insure the risk of fulfillment of the corresponding obligations from reinsurers. Own funds (equity) should be relatively free from any external obligations and restrictions. Equity is understood as the net value of the property of a business entity, which represents the difference between the value of its assets and liabilities.

Along with the reinsurance protection system, the presence of sufficient equity capital and reasonable insurance reserves provides a guarantee of the financial stability of Siberian-Ural Insurance Company CJSC.

The size of the authorized capital as an indicator of financial stability determines the insurer’s ability to accept risks of one or another magnitude for insurance, not only in the present, but also in the future. The external manifestation of the financial stability of CJSC Siberian-Ural Insurance Company over time is solvency.

In addition to solvency indicators, reflecting the possibility of fulfilling obligations in the event of deviations from the normal course of activity in the analysis process, it is necessary to determine indicators of the adequacy of insurance reserves. This group of indicators is calculated only at the end of the year and serves to assess the reliability of the reflection of insurance liabilities. It includes the following indicators.

1. Indicator of sufficiency of technical reserves:

This indicator reflects the sufficiency of funds corresponding to the value of technical reserves in relation to the amount of liabilities expressed in the form of premiums for types of insurance other than life insurance, on their own retention. The maximum size of the standard in accordance with world practice should be more than 100%. In Russia, due to the peculiarities of the formation of reserves and the financial results of insurance activities, exceeding 50% of the level is considered sufficient.

2. Ratio of insurance reserves and equity capital:

The total volume of insurance technical reserves should not exceed the insurance organization's own funds by more than 3.5 times, otherwise this may adversely affect the financial stability of the insurance organization.

3. The deficit (surplus) of technical reserves is calculated as the difference between the volume of required reserves and the actually formed reserves. The volume of required reserves is determined as follows: Earned insurance premium is understood as the totality of income from insurance activities by types of insurance other than life insurance related to the period under review. Earned premium includes premium adjusted for changes in the unearned premium reserve.

Actually formed reserves represent the average value of technical reserves for the year under review. Thus, the indicator reflects the deficiency or surplus of technical reserves formed in the current year compared to the level of the previous year. Sharp fluctuations in the indicator require a more careful consideration of the reasons for their occurrence. The indicator is calculated as a whole and taking into account reinsurers. An analysis of the structure of insurance reserves is given in Table. 3.17.

Table 3.17 - Structure of insurance reserves of an insurance organization for the period 01/01/2005 - 01/01/2007

An analysis of the structure of an organization's insurance reserves shows that total insurance reserves are characterized by a predominant share of loss reserves, the share of which is gradually increasing. As of 01/01/07, the share of losses was 61.4%, and the share of the unearned premium reserve was 37.8%. Other technical reserves and life insurance reserves are not formed in this organization.

The information necessary to calculate the adequacy of insurance reserves is given in table. 3.18, analysis of indicators of their sufficiency - in table. 3.19.

Table 3.18 - Data for calculating the adequacy of insurance reserves for the period 01/01/2005 - 01/01/2007

Table 3.19 - Indicators of the adequacy of insurance reserves and solvency of the insurance organization for the period 01/01/2005 - 01/01/2007

Based on the results of analytical calculations, we can conclude that the company's financial position was quite stable in 2004. The high share of equity capital in the structure of liabilities ensured high solvency indicators. Insurance technical reserves have been formed in sufficient quantities, in full compliance with the Regulations on the formation of insurance technical reserves. The fulfillment of the indicator of adequacy of insurance reserves indicates full coverage of the amount of upcoming payments under existing contracts in 2004.

The situation changed dramatically for the worse in 2005. According to Table. 3.18 we can conclude that the increase in the collection of insurance premiums (by 114.4%) and insurance technical reserves (by 40.2%) with a decrease in the amount of equity capital (by 18%) had a negative impact on solvency indicators. The sufficiency indicator of insurance technical reserves as of January 1, 2006 turned out to be below the standard value and amounted to only 44%. The remaining solvency indicators maintained their previous fairly high level, but the emerging downward trend threatened to change the current favorable situation, which is what happened next year.

In 2006, the size of technical reserves continued to grow (by 15.8%) and the collection of insurance premiums (by 28.9%), while the amount of equity capital decreased (by 12.9%). Solvency indicators indicate that in 2006 there was a discrepancy between the size of the organization's own capital and the volume of insurance activities.

The solvency margin indicator decreased and as of 01/01/07 amounted to 13%, with a recommended value of more than 0%. In 2005, this figure was 409%. The emerging trend of a rapid decline in the solvency margin indicator can negatively affect the financial condition of the company in the near future.

The ratio of equity capital to premium collection for 2006 decreased by 11 points compared to 2005 and amounted to 24%, while the standard was more than 25%. A significant decrease in the amount of own funds led to insufficient equity capital at a given level of insurance premium collection in the analyzed company.

The ratio of reserves to equity capital increased and amounted to 165% in 2006, with the standard not exceeding 350%. The increase in reserves was due to an increase in the reserve for unearned premiums and the reserve for losses, and the growth rate of reserves for losses was higher than the growth rate for the reserve for unearned premiums. At the same time, the analysis showed a deficit of technical reserves in 2006 compared to the level of the previous year in the amount of 3812 thousand rubles.

A negative trend of deterioration in solvency indicators may lead in the near future to the current insolvency of a given company and undermine its financial stability.

The sufficiency of insurance reserves is determined by the actuary, he conducts an actuarial audit and its results are used to establish the tariff rate and reliability in determining whether the organization can fulfill its obligations in insurance activities under concluded insurance contracts.

Calculation of the adequacy of insurance reserves cannot be made without calculating the deficit of the insurer's insurance amounts. Based on the size and regularity of risk segregation, the frequency of occurrence of insured events, the amount of income received by the insurance organization, the insurance rate is calculated based on statistical analyzes over several years.

The insurance rate is the insurance premium rate per unit of insurance amount, taking into account the object of insurance and the nature of the insurance risk (Article 11 of the Law of the Russian Federation “On the organization of insurance business in the Russian Federation”). The tariff rate is calculated by the insurer, but impartial calculations cannot always be carried out by the insurance company because it does not have the necessary information. Therefore, the company makes calculations based on the probability theory of the occurrence of any negative events and costs.

In the Russian Federation, the adequacy of insurance reserves must exceed the 50 percent barrier, although in practice throughout the world this barrier is equal to 100 percent. This indicator is calculated using the formula:

Formula: .

If the amount of the insurance technical reserve exceeds the insurer's own capital by more than three and a half times, then this situation may affect the financial stability of the organization.

The next stage is to identify excess technical reserves.

Calculation formula:

By earned insurance premium I take the amount of income from insurance other than life insurance for the period under review. The result of these operations shows the shortage or surplus of technical reserves for the year in question. If, after these calculations, strong fluctuations are visible compared to previous years, then you should pay attention to what caused these changes.

The indicator is calculated taking into account reinsurance contracts.

§5 Investment policy of insurance companies.

Article 23 of the Federal Law “On the organization of insurance business in the Russian Federation” 14 states that the insurer has the right to invest and place its income in the manner prescribed by law. The procedure for placing the insurer's funds is specified in the Order of the Ministry of Finance of the Russian Federation dated 06/02/2012 No. 100n “On approval of the procedure for the placement of insurance reserve funds by insurers” 15 it states that the funds used to cover insurance reserves must meet the requirements of repayment, liquidity, profitability and diversification.

The liquidity principle implies that the insurer must always have available funds so that the organization can always fulfill its obligations agreed upon in the insurance contract.

The principle of repayment implies that funds placed during the investment process must be placed as reliably as possible, which will ensure their return in full, one hundred percent.

The profitability principle tells us that the insurer must invest its funds in such a way that, throughout the entire investment process, these assets do not lose their market price, which was established at the time of their investment, and at any time the company must freely sell these funds.

The principle of diversification talks about the distribution of investment risks to which each investor is exposed, that is, the following should not be allowed: 1) one-sided investment of capital, 2) a regional concept of capital 3) investments in only one debtor should be avoided.

Insurance companies use their reserves to develop their business. Because funds are credited to the company’s account before the occurrence of an insured event; there are always funds temporarily free from obligations that are invested in the development of the enterprise, but this issue is regulated by law since restrictions are needed on the use of these funds so that the organization can fulfill its obligations that are specified in insurance contract.

acquisition of government securities or local government securities

acquisition of real estate

acquisition of securities of joint-stock companies and other currency assets and the right to participate.

The second rule is the prohibition of purchasing shares and shares of commodity and stock exchanges at the expense of insurance reserves. This restriction is specified in the Federal Law “On Exchanges and Exchange Trading” 16.

The third rule prohibits investing in intellectual property, because there is no way to reliably determine its price. Also, funds from insurance reserves cannot be used as collateral; financial assistance cannot be provided at their expense, including at interest; they are not invested in activities that involve trade and purchasing operations.

Despite these prohibitions, insurers still have a fairly broad area where they can place their temporarily free funds. The placement of reserves can be carried out either by the organization itself or with the help of an intermediary.

To implement the principle of liquidity for the execution of cash payments for the types of insurance provided, at least three percent of the funds must always be in a bank account.