Indicators-Markers for Assessment of Probability of Insurance Companies Relatedness in Implementation of Risk-Oriented Approach
Indicators-Markers for Assessment of Probability of Insurance Companies Relatedness in Implementation of Risk-Oriented Approach

Summary/Abstract: The article identifies that a fundamental change in the financial monitoring system is the development of mechanisms to improve the risk-oriented approach that is applied at the national level to the reporting entities of the primary financial monitoring and aimed at carrying out risk analysis and classification. Methodical study of assessment of the probability of relatedness of insurance companies based on the use of tools of graph theory and indicators-markers for assessment of the probability of relatedness of insurance companies. The indicators-markers include: assets, equity and insurance reserves, insurance premiums and insurance premiums owed to reinsurers. For testing systems technologies (based on the use of indicators-markers) to assess the probability of relatedness of insurance companies and determining its impact on the risk of money laundering, it has been used data from the financial statements of 15 Ukrainian insurance companies for 2006-2017 years that served as the statistical base. This made it possible to identify the relatedness of insurance companies, which would improve the risk-oriented approach to insurance companies, which are the reporting entities of the initial financial monitoring. An empirical test of the use of the indicator-marker “equity” was used to determine the correlation coefficients that characterize the tightness of relatedness of the investigated insurance companies, as well as the determination of the coefficients for building the insurance companies' relatedness graphs.

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