Procedure

The basic principle of the procedure of the estimation of the reliability of insurance company - comparison of her indices on each of the considered factors for the sake of the average indices on the insurance market and the development of factors, as it is positive, so also negatively influencing the solvency. This approach makes it possible to move away from “ideal” characteristics and to reveal the most reliable companies due to the existing political and economic conditions.

A basic difference in the procedure “expert of the Ra” from the international analogs is before the fact that the scale of estimations is oriented in Russia. Companies are correlated with the domestic realias. While before the scale of international estimations even the best Russian companies occupy extremely modest places because of the high [stranovogo] risk.

The rating of insurance company is determined with the use of a model of the dependence of rating functional beyond the factors, which characterize different aspects of the activity of company. As the factors are examined the financial and economic indices of the activity of company, which determine the current solvency, and the weaklyd-formalize characteristics of the internal risk of companies, which determine its financial stability.

Procedure assumes the calculation of the value of rating functional on the basis of the value of rating factors and weight coefficients appropriated to them. As far as rating class is uniquely determined the financial state of insurer and the quality of control besides it by insurance and investment risks.

In this case the basic ranking of companies is achieved on the basis of the values of the index of solvency.

By solvency of insurance company is understood its ability to fulfill the existing insurance obligations before the clients on the basis of the active memberships available to it, with the use of additional means of overcautious people during calculations on the risks, transmitted beside [perestrakhovanie]. The coefficient of the current liquidity is used as the base characteristic with the determination of the level of solvency.

By financial stability of insurance company is understood its ability to preserve the existing level of solvency for a certain period of time under the possible unfavorable external and internal influences beyond the financial flows.

The financial stability of insurance company is determined on the basis of the construction of model for the following weaklyd-formalize integral factors:

• the size of company;
• the external factors of stability;
• the balance of insurance briefcase;
• state of development and the stability of client base;
• the reinsurance policy of company;
• the balance of financial flows;
• investment policy and strategy;
• the state of subsidary network;
• the life of company on the market and her business potential;
• the sufficiency of its own means.

Basic principle of the procedure of the determination of the financial stability of company due to the existing conditions of environment - comparison of its indices on each of the considered factors for the sake of the average indices on the list of companies.

The proposed diagram has several levels, i.e., within the framework the analysis of each integral factor are examined several indices. On the basis of the activity analysis of company the index, which can assume one of three values, is appropriated to each factor: -1, 0, 1.

In the case, when because of the incompleteness of the data given it is not possible to reliably estimate the influence of factor, the corresponding to it index it is relied by the equal to -1.