RISK ASSESSMENT OF USING INSURANCE COMPANIES IN SUSPICIOUS TRANSACTIONS
RISK ASSESSMENT OF USING INSURANCE COMPANIES IN SUSPICIOUS TRANSACTIONS

Summary/Abstract: The risk of using insurance companies in suspicious transactions is focused on optimizing the tax burden businesses and/or legalization (laundering) of criminally gained income increasing under conditions the world economy of globalization, capital flows between countries liberalization, financial innovation emergence and technology improvement. This problem cannot be considered as an isolated threat of each country’s economic security. In this connection, universal scientific and methodical approach to the assessment of the risks of insurance companies’ intake in suspicious transactions is proposed through application Bayes’ theorem and fuzzy set method. In the proposed approach, the groups of indicators which characterize the risk of insurance companies intake in suspicious transactions are defined (country risk and its financial system, insurer’s risk), insurer’s risk, risk of regulatory standards violations). According to the results of risk assessment, a number of insurance companies with a «critical» and «high» level of insurance companies’ intake in suspicious transactions indicator can be formed. This will serve as a basis for additional examination of financial condition for governmental supervisory and control authorities.

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