QUANTITATIVE METHODS ESTIMATION OF THE COMPETITIVENESS OF INSURANCE COMPANIES IN THE CONTEXT OF SUSTAINABLE DEVELOPMENT

Abstract

The presence of a large number of insurance companies in the Ukrainian insurance market requires the use of quantitative methods to assess their competitiveness and attractiveness for consumers of insurance services. In order to ensure the level of competitiveness of an insurance company that would meet the needs of policyholders in comparison with other companies, it is necessary to orient the activity on the line «sustainable development». The use of quantitative methods in assessing the competitiveness of insurance companies is due to the fact that their application is based on well-defined hypotheses in the presence of specific quantitative indicators and obtaining results with a high degree of accuracy. The priority objective of an insurance company is to obtain the greatest number of competitive advantages that serve as the basis for ensuring a constant level of efficiency, profitability and profitability of their activities. Solving this problem is possible with the use of an economic and mathematical model aimed at the iterative formation of the structure of the insurance portfolio. There are different methods of optimizing the activities of companies that allow you to increase the amount of profit and increase profitability. One of the methods that an insurance company can use to improve its efficiency is optimization of the insurance portfolio, which includes determining the rational combination of the proportion of individual types of services in the portfolio, analysis of solvent demand for certain types of services, taking into account the restrictions and needs of the market, the choice of rational combination prices and sales volumes, taking into account market demand. By developing a model for quantifying the performance of an insurance company to determine its level of competitiveness, quantitative significance was obtained which allowed ranking the insurance companies according to this criterion. The obtained results allowed determining the competitive advantages of insurance companies and determining their competitiveness in the market. Keywords: quantitative methods, sustainability, competitiveness, insurance companies, insurance market, sustainable development. JEL Classification C53, G22 Formulas: 26; fig.: 5; tabl.: 5; bibl.: 13.