MARKET OF FINANCIAL SERVICES

BARANOV Andrii ¹, BARANOVA Olena ²

¹Kyiv National Economic University named after Vadym Hetman
OrcID ID : https://orcid.org/0000-0003-0032-3128
²no data
OrcID ID : https://orcid.org/0000-0002-1977-1716

Theoretical and methodological approaches to definition of income of insurance company

In this article the authors has deepened theoretical and methodological basis of the essence and definition of income of insurance companies. The authors has substantiated the necessity of determining income of the insurer taking into account features of insurance as a field of entrepreneurship. The authors has proved the need to separate income of the insurance company into 3 groups according to the type of activity: operating income, income from investments and income from financial activities. This classification will allow national insurers to adapt quickly to the requirements of International Accounting Standards, as well as to consider their revenues, based on the methodology of management of cash flows. For the National Commission for the State Regulation of Financial Services Markets this approach to the classification shall ensure adaptation of statistical information about the insurance market to European standards. The authors has substantiated feasibility of a separate allocation of earned premiums and other operating income. The need for such allocation is necessary for distinguishing between revenues directly related with the insurance business, and revenues associated with it indirectly.

Keywords: income, insurance company, operational activity, investment activity, financial activity

JEL: G20, G22

BARANOV A. . Theoretical and methodological approaches to definition of income of insurance company / A. . BARANOV, O. . BARANOVA // Фінанси України. - 2014. - № 9. - C. 107-117.