Sirenko Natalia, Doctor of Economics, Professor, The Head of the Department of Finance, Banking and Insurance, Mykolaiv National Agrarian University, Mykolaiv, Ukraine

ORCID: 0000-0003-1660-1073
e-mail: sirenko@mnau.edu.ua

Mikuliak Kateryna, Assistant of the Department of Finance, Banking and Insurance, Mykolaiv National Agrarian University, Mykolaiv, Ukraine

ORCID: 0000-0001-8317-0360
e-mail: mikulyak@mnau.edu.ua

Anastasiia Rahulina, Applicant of Higher Education, Accounting and Finance Faculty, Mykolaiv National Agrarian University, Mykolaiv, Ukraine

ORCID: 0009-0001-8328-8614
e-mail: nastya.ragulina.2004@gmail.com

Institutional and Organizational Mechanisms for Ensuring the Financial Stability of Insurers

Abstract. Introduction. The financial stability of insurance companies serves as a cornerstone for the resilience of the modern financial market, ensuring risk redistribution and socio-economic protection. However, under conditions of global uncertainty and systemic transformations, traditional asset-centric management approaches are losing their effectiveness. The contemporary insurance architecture is under significant pressure from synergistic destabilizing factors, including military aggression, macroeconomic instability, and stringent regulatory shifts toward risk-oriented supervision under Solvency II standards. High inflation and currency volatility, coupled with the need for rapid digitalization, require insurers to develop integrated management mechanisms capable of balancing regulatory compliance with innovative development. 

Purpose. The purpose of the article is to provide a theoretical substantiation and practical determination of the institutional and organizational mechanisms for ensuring the financial stability of insurance companies amidst current economic transformations and heightened regulatory requirements.

Results. The study systematizes the factors influencing the financial reliability of insurers, classifying them into institutional (external) and organizational (internal) levels. It is established that while the institutional environment, shaped by National Bank of Ukraine regulations and European standards, sets the framework for stability, internal organizational tools such as risk management and InsurTech integration determine a company’s operational capacity. An empirical analysis of market leaders’ financial indicators for 2022–2024 reveals a distinct trend: the formation of “excess liquidity” as a preemptive safety model. While this strategy ensures high solvency during periods of military risk, it creates pressure on return on equity (ROE) and necessitates the optimization of investment portfolios. Furthermore, it is proved that the integration of InsurTech solutions, including Big Data and Artificial Intelligence, transforms the management system from a static balance-sheet approach into a proactive model of predictive risk assessment.

Conclusions. The research concludes that managing financial stability is a complex multi-level process requiring a synergy between regulatory compliance and technological innovation. Effective stability is achieved not through formal adherence to prudential ratios alone, but through the management’s ability to integrate risk-oriented approaches into a general development strategy. Future research should focus on developing digital stress-testing models for insurance portfolios using predictive analytics to forecast resilience during the post-war economic recovery period.

Keywords: financial stability of the insurer; solvency; insurance reserves; reinsurance; risk management.

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