METHODOLOGY AND TOOLS OF FINANCIAL RISK MANAGEMENT OF INSURANCE COMPANIES
The article determines essence of the methods and tools of financial risk management of insurance companies. The methods of financial risk management of the insurer consist of a system of receptions in the field of financial risk management, the use of which allows solving a number of problems to a certain extent, namely, to predict the occurrence of risk events in the process of an insurance company and to determine various ways to avoid them, minimize and transfer and take measures to reduce the consequences of the occurrence of such events for the insurer. The methods and tools of financial risk management are closely interrelated. The authors analyze main methods of managing financial risks of the insurance company. It has been established that the most common methods of risk management in insurance are risk assessment, risk avoidance, risk reduction, risk acceptance, risk transfer. The article identifies insurer's financial risk management tools, in particular stress testing, the Monte Carlo method, the VaR method, the methods based on the calculation of ES, EVA and RAROC indicators, as well as hedging, diversification, rationing, self-insurance, and reinsurance. The article determines the necessity of using methods and tools of financial risk management by insurance companies.