On the one hand, insurance acts as a stabilizer of the economic and social situation in the country; on the other hand, it is a sphere of the economy and business.
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At the same time, it refers to methods that allow managing risk. The specifics of protection under insurance is to compensate for damage in the event of insured event.
What it is
IN Russian Federation insurance financial risks regulated by the Federal Law under the number, which was adopted at the end of November 1992.
It has been repeatedly amended and supplemented, the latest of which include innovations dated September 1, 2014.
The concept of "financial risk" refers to the risk that arises from various financial transactions, commercial activities. In them, the commodity acts as a currency, valuable papers, Money.
In a market economy, financial risk insurance refers to an industry that provides economic freedom and individual rights. It is important in the investment activity of the capital of financial and industrial groups, holdings.
Insurance financial resources is directly related to the reimbursement of probable losses if the insured agreements do not bring the expected return after some time.
The amount of insurance indemnity is determined by the difference arising between the sum insured and the acquired income from the insured commercial activity.
Rules
For financial risk, in accordance with the rules of insurance, any natural or entity may act as an insured or beneficiary.
He has the right to conclude an insurance contract in his favor, but the possibility of concluding it in favor of a third party is not excluded.
According to the rules, financial risks include:
- loss of expected income associated with untimely sales of products, downtime of the enterprise's production facilities, a decrease in the level of profitability;
- establishment, financing of a newly created company;
- leasing, fluctuations in the rate of the sale price of securities;
- violation by the counterparty of obligations under the transaction, its insolvency that appeared during the execution of the terms of the transaction.
Forms and types
According to the provisions of the insurance rules, the types of risks determine the forms of insurance for financial risks. For example, price risks are often insured with the help of derivatives, that is, options, futures, forward contracts used in exchange trading in securities.
Financial risk is divided into main types:
On commodity, stock exchanges, insurance of financial risks is called hedging. Under it, insurance is carried out by the method of concluding a reverse transaction, using reverse commodity, foreign exchange flows.
It is also committed by a counter sale or purchase of the same underlying asset. To replace one financial instrument with another, the correlation coefficient must be negative, that is, the value of securities must be directly opposite.
Internal and external insurance of financial risks
In the financial risk insurance market, its main types are identified, which are represented by external and internal risks.
The external types of insurance include the insurance of enterprises through the conclusion insurance contract, transfer of insurance risk to its counterparties.
With external insurance, the specific financial risks of the enterprise arising in the course of the economic activity of the enterprise are insured in full.
It comes in two forms:
When implementing domestic insurance the enterprise insures its risks arising directly from it.
The internal insurance system includes the provision of compensation for probable financial losses due to commercial transactions, the introduction of a system of penalties.
It allows the enterprise to reserve financial resources. In addition, he can create their reserve to cover losses, unexpected expenses, future payments.
Features of the contract
A financial risk insurance contract is drawn up individually, taking into account the specifics and objectives of commercial activity, financial capabilities, in strict accordance with the instructions of the Civil Code.
It is concluded on the basis of a written application, the content of which is information about the subject of the contract, the list of insured events, the amount of the insurance amount, the obligations assumed by the parties, and the introduction of amendments and additions.
But in any case, it is necessary to provide for the duration of its action, the conditions of imprisonment. Amendments to it are formalized by a separate agreement.
The contract may be terminated upon expiration, liquidation of the insurance company, if the insured provides knowingly false information, if the insured fails to fulfill obligations to the insurer, it is terminated by the insurance company unilaterally.
Also, at the request of the insured, it can be terminated at any time. it is signed by the parties.
What is an object
In financial risk insurance, the property interests of the insured relating to losses are included in its object.
As a rule, they arise when the counterparty fails to fulfill or improperly fulfills its obligations to the insured.
Insurance of financial risks of legal entities
A legal entity has the opportunity to insure its systematic and non-systematic financial risks in order to obtain financial guarantees to protect its interests if necessary.
There are no restrictions on the amount of indemnity, they are determined depending on the value of the insurance object. It also establishes the amount of insurance premiums.
Moreover, a legal entity can insure an enterprise in whole or in part, limited to individual objects within a certain sum insured, in accordance with the list of insured events.
Where can I apply
Many Insurance companies began their activities in this area of insurance, despite the fact that it appeared not so long ago.
They offer various programs for the implementation of insurance of financial risks of individuals, legal entities, regardless of the form of ownership, organizational and legal status.
The programs offered by companies provide reliable coverage of the damage incurred by the insured due to the fact that the counterparty was unable to fulfill its obligations on time.
At the same time, they serve their clients at a high level, consult on issues that interest them, explain the provisions and rules of financial risk insurance, their concepts and where they are applied. Below are the conditions of their insurance in two well-known Russian companies.
Rosgosstrakh
The insurance company within the framework of the financial risk insurance program covers a fairly wide range of industries in which insurance is provided:
- transported goods from the resulting damage, such as damage, theft, robbery;
- sea and river vessels, it provides comprehensive protection of property interests, allows you to conclude large international contracts, receive loans secured by a vessel on favorable terms;
- the risks of space activities with the provision of insurance protection at all stages of the production and operation of space technology;
- agricultural risks, including voluntary insurance of agricultural crops, providing insurance protection;
- construction and installation risks and civil liability in relation to third parties in the course of construction and installation works;
- electronic equipment, within which the risks associated with its operation are subject to coverage;
- yachts and boats under a comprehensive program that provides insurance protection against all risks arising from the operation of the vessel.
The company provides its services to individuals and legal entities, providing effective insurance protection to its customers.
Loyd City
There are frequent cases when the counterparty violates the procedure and terms for fulfilling the obligations specified in the transaction agreement with the insured or performs them improperly, as a result of which the insured suffers losses.
The financial risk insurance program offered by Loyle City is able to provide financial protection to the insured in this situation.
The insurance company assumes responsibility under the contract concluded with the insured in case of non-fulfillment or improper fulfillment of contractual obligations by the counterparty under certain conditions.
These include:
- recognition of the counterparty as bankrupt, liability arises from the moment of official publication of the decision of the arbitration court;
- the inability of the counterparty to fulfill its obligations to the insured within the prescribed period, in the required form due to the suspension of production activities, reduction in production volumes due to the effects of fire, explosion, emergencies, natural disasters.
The insurance company guarantees its customers to pay insurance compensation upon the occurrence of an insured event immediately and in full, if the insured notifies the company in a timely manner of the event.
Rates
When determining tariff rates for insurance of financial risks, the level of stability in market relations, the forecast for the future, that is, the dynamics of growth, the duration of the insurance period, and the type of commercial activity are taken into account.
According to Art. 2 of the Law of the Russian Federation of November 27, 1992 No. 4015-1 "On the organization of insurance business in the Russian Federation", insurance is a relationship to protect the interests of individuals and legal entities of the Russian Federation, subjects of the Russian Federation and municipalities upon the occurrence of certain insured events at the expense of funds formed by insurers from paid insurance premiums (insurance premiums), as well as at the expense of other funds of insurers. Thus, insurance implies: the need to form monetary funds, through which insurance payments are made; redistribution of funds between the subjects of insurance relations; the conditionality of insurance payments by the occurrence of an insured event. The socio-economic significance of insurance as an activity related to material compensation for damage or the implementation of other payments provided for by law or an insurance contract determines the attention that society attaches to the regulation of the activities of insurers.
Insurance companies are legal entities carrying out insurance activities in accordance with applicable law. They can be created in the form of both commercial and non-commercial 1 organizations. Insurance undertakings set up in the form of commercial undertakings are subject to pre-market entry controls in the licensing process. Legally defined minimum size authorized capital insurance company 2 , possible directions for investing assets, national authority insurance supervision controls the solvency of the insurer. The statements of the insurance organization must be confirmed by the auditor and published in terms of the financial result.
The finances of insurance organizations are inherent, along with the principles of organizing finances common to commercial and non-profit organizations. specific features due to the manifestation of the essence of insurance.
1. An insurance organization, as a market entity, operates under the so-called “double risk”: along with that which it has assumed from policyholders under the contract, it bears its own business risk, mainly associated with investment activities. When implementing these groups of risks - insurance and investment - various sources of compensation for losses are used.
In order to ensure the fulfillment of obligations under the contracts, the insurance organization forms an extensive system of insurance reserves, the need for which is due to the uneven distribution of risk over time (alternating favorable and unfavorable periods).
The investment risk of an insurance organization is guaranteed by its free assets, a significant part of which is its own funds 3 . In this regard, the amount of own funds of the insurance organization is of particular importance, since it largely determines the solvency of the insurer 4 .
Placement of own funds of insurers is regulated Federal Service insurance supervision 5 .
2. Between the moment of receipt of the insurance premium (payment for the insurance service) and the insurance payment, a significant period of time may pass (in personal insurance - decades), in connection with which the insurance organization gets the opportunity to invest the accumulated premium, receiving investment income. In countries with developed market economy insurance organizations are the largest institutional investors, and the role of the insurer in the formation of the country's investment capital is no less relevant than insurance coverage.
3. There are features in the sources of funds and the structure of the financial resources of the insurance organization:
A specific source of funds of an insurance organization is an insurance premium, which is received under the contract and is borrowed funds;
In the structure of the financial resources of the insurance company have a significant proportion of insurance reserves.
4. A consequence of the great social significance of life insurance is a ban on the conduct of life insurance operations and other types of insurance by the same insurance organization. The purpose of this ban is to ensure financial stability life insurance operations, protection of the interests of the insured. Economic justification Such a division is the specific dynamics of risk, the long-term nature of obligations in life insurance, special methods for calculating reserves, and other methods of assessing solvency.
5. An insurance company is one of the few market participants carrying out preventive activities due to its interest in reducing the frequency of occurrence of adverse events and the severity of their consequences. Along with insurance reserves, it can form a reserve of preventive measures, the funds of which are used to prevent the occurrence of adverse events.
Taking into account the intensity of cash flows of the Insurance Company, including those caused by the internal redistribution of funds, in foreign insurance the concept of the financial potential of the insurance company is often used, which means the amount of funds that can be used for insurance protection at a particular point in time.
TO main sources of financial resources insurance companies include:
When creating an insurance organization - authorized capital;
In the process of functioning of an insurance organization - income from insurance activities, income from investing insurance reserves and own funds, other income.
The financial resources of insurance companies are formed in the form cash income, savings and receipts. Cash income includes profit from insurance activities, profit from investment activities, profit from other non-operating operations of the insurance company. Unlike other commercial organizations, there is a peculiarity in determining the profit from insurance activities. IN insurance business profit from insurance activities is usually called the financial result, since it can be both positive and negative at the end of the year due to the nature of the manifestation of risk over time. The financial result of insurance operations is determined by comparing income and expenses associated with the implementation of insurance activities.
The income from insurance activities includes insurance premiums, reimbursement of expenses for risks transferred to reinsurance, receipts from insurance reserves, commission and brokerage fees, and some other income.
Expenses related to the implementation of insurance activities, are divided into two groups - the costs associated with incurring insurance obligations (insurance payments, deductions to reserves, transfer of part of the premiums to the reinsurer, etc.), and the costs of doing business (the costs of the insurer for the conclusion, maintenance and execution of insurance contracts) .
The main source of income of the insurance organization is the insurance premium, which is a payment for insurance. The insurance premium is calculated on the basis of the insurance premium - the premium rate per unit of the sum insured. Value insurance rate depends on the nature of the risk, is calculated on the basis of statistical data and is generally based on the principle of equivalence of the financial obligations of the parties to the insurance contract. The insurance rate (gross rate) consists of two parts: the net rate, which is directed to payments to policyholders, and the burden, through which the activities of the insurance organization are financed.
Insurance activities related to the provision of insurance services serve as the financial basis for investment by the insurer. Income from investing insurance reserves is formed by investing their funds in assets, the list of which is regulated by regulatory legal acts 6 and currently includes government securities of the Russian Federation and constituent entities of the Russian Federation, municipal securities, shares, bonds, bank deposits, cash, cash in bank accounts, precious metals in bullion,
real estate, etc. At the same time, the upper limit (in %) of the allocation of insurance reserves to specific types of assets is established by law. The share of assets outside Russia should not exceed 20% of total insurance reserves 7 . The timing of the placement of insurance reserves should be close to the timing of the insurer's obligations under insurance contracts. Thus, the state not only ensures the financial stability of insurance organizations, but also regulates the profitability of their operations for investing insurance reserves. The costs of investment activities are similar to the costs of other commercial organizations.
Other income of insurance organizations includes non-operating income, for example, from the provision of consulting services, the lease of property, fines, penalties, forfeits received under financial and economic contracts, amounts received in the form of recourse, the amount of the return of insurance reserves, etc.
A special place in the process of formation of financial resources of the insurance company is occupied by insurance reserves, which can act as an item of income or expenses, depending on the change in the volume of obligations of the insurance organization or its need for additional resources.
Insurance reserves formed by insurance companies include 8:
Premium reserves (unearned premium reserve and life insurance premium reserve);
Loss reserves (reserve for reported but unsettled losses);
Provision for incurred but unreported losses;
stabilization reserve.
In addition, for certain types of insurance (in particular, for compulsory health insurance, voluntary insurance) reserves for financing preventive measures are formed, a payment reserve is also created for compulsory medical insurance medical services and spare reserve.
The reserves of an insurance organization have different purposes, but the most important of them are a financial guarantee of the fulfillment of obligations to policyholders and express the amount of deferred payments as of the reporting date.
Unearned premium reserve is formed in connection with the installment nature of the obligations of the insurance company, since it is liable under the contract from the moment the insurance premium is paid until the occurrence of an insured event or the expiration of the insurance period. In this regard, the insurance premium cannot be fully attributed to the income of the insurance company, part of it is reserved for future payments. Different methods are used to determine the unearned premium reserve, depending on the nature of the risk, but more often the premium is distributed proportionally over the entire insurance period. Thus, as of the reporting date, the premium is divided into "earned", which relates to the past period and is directed to income, and "unearned", which is reserved for future payments.
The need to form reserves for losses is due to the fact that their settlement, especially for large, complex risks, takes time (determining the causes of the event, assessing damage, etc.), as a result of which the very fact of the occurrence of an insured event may refer to one reporting period, and the insurance payout to someone else.
Provision for reported but unsettled claims is formed for payments under contracts under which an insured event occurred during the insurance period, but for objective reasons, the payment was not made in the same reporting period. The amount of loss is credited to the reserve based on the application of the insured. The volume of the reserve at the reporting date shows the amount of unsettled obligations of the insurance company and increases by 3% to finance the costs of claims settlement.
Provision for incurred but unreported losses is formed to finance payments for those insured events that occurred during the period of validity of the insurance contract, but which were not known to either the insured or the insurance company. Such a situation is possible, in particular, with liability insurance, for example, the consequences of an architect's mistake or a doctor's incorrect diagnosis, professional responsibility which is insured, may appear after a considerable period of time and lead to the need for payments. Therefore, this reserve, unlike the previous one, is intended to finance the fulfillment of obligations under contracts that have expired. Since the occurrence of such situations is probabilistic in nature, the amount of the reserve is determined by the methods of actuarial mathematics based on the accumulated statistical data.
stabilization reserve is a tool for additional distribution of risk over time: it is formed in favorable years and is used in years with increased unprofitability. The method of its calculation is based on the analysis of a number of indicators characterizing the unprofitability and financial results insurance operations.
Those insurance organizations that carry out life insurance form life insurance reserves 9 . Life insurance is a collection of types personal insurance which provide for the occurrence of obligations of the insurance
organizations under contracts in cases of death of the insured or survival by him until a certain period (event). Insurance payment may be a lump sum or in the form of an annuity. Like any premium reserve, the life insurance reserve is an estimate of unfulfilled obligations to policyholders. Due to the fact that discounting is used in the calculation of tariff rates for life insurance, the reserve should take into account that part of the investment income of the insurance organization that corresponds to its obligations.
The methodology for the formation and use of the life insurance reserve is developed in accordance with the conditions of specific types of insurance using the methods of actuarial mathematics.
On the amount of reserves that are intended to ensure insurance payments, i.e. act as financial guarantee fulfillment of the obligations of the insurance organization in relation to the insured, its taxable base is reduced.
The profit of an insurance company is defined as the difference between the income and expenses of an insurance company for insurance, investment and other activities in general.
It should be noted that some types of insurance are carried out by insurance organizations operating in the form of commercial organizations on a non-commercial basis, in particular, the activities of insurance medical organizations for compulsory health insurance. Insurance payments on it are used to pay for medical services, cover the costs of doing business under compulsory medical insurance 10 , the formation of insurance reserves and the remuneration of workers engaged in this type of insurance. The excess of income over expenses is determined separately for operations of compulsory medical insurance and for operations related to the investment of insurance reserves for this type of insurance. The profit from compulsory medical insurance is used to replenish insurance reserves, and losses are covered by income received from investing the funds of the medical services payment reserve and reserve reserve. Income from the investment of reserves not used to cover losses on the implementation of compulsory medical insurance is used to replenish these reserves in accordance with the standards established by territorial fund compulsory health insurance, and the remaining funds are the income of the insurance organization. In addition, her income includes funds saved on the conduct of the compulsory health insurance business.
TO savings how the types of financial resources of insurance organizations include depreciation, funds of financial funds created from profits in previous years (for example, a reserve fund formed by insurance organizations operating in the form of joint-stock companies). Income are formed in the order of redistribution of financial resources (from the parent company, within the holding or financial-industrial group, etc.).
In the process of managing the finances of an insurance organization, much attention is paid to such factors as establishing a reasonable amount of payment for an insurance service; formation of insurance reserves adequate to obligations; implementation of an effective investment policy that meets the requirements of diversification, liquidity, profitability and repayment; transfer of risks to reinsurance.
Directions for the use of financial resources insurance organizations are determined by the organizational and legal form of their functioning and include:
1) payment of taxes and other obligatory payments in budget system RF;
2) settlements with financial and credit institutions (for example, payment of interest and repayment of a loan to cover capital expenditures);
3) formation of a reserve fund at the expense of profit in accordance with the current legislation;
4) growth of authorized capital;
5) investment of free financial resources;
6) financial incentives for employees of the organization;
7) distribution of profits between shareholders (shareholders) of an insurance company, etc.
The use of financial resources should be carried out taking into account the need to comply with the legal acts RF requirements for financial stability and solvency of insurance companies.
1 Mutual insurance companies operate as non-profit organizations. the federal law RF dated November 29, 2007 No. 286-FZ “On Mutual Insurance”.
2 According to paragraph 3 of Art. 25 of the Law of the Russian Federation of November 27, 1992 No. 4015-1 “On the organization of insurance business in the Russian Federation”, the minimum amount of the authorized capital is determined by multiplying its base amount (30.0 million rubles) by a coefficient differentiated depending on the object of insurance.
3 Own funds of insurance commercial organizations include authorized, reserve and additional capital, retained earnings
4 Order of the Ministry of Finance of the Russian Federation dated November 2, 2001 No. 90n “On approval of the Regulations on the procedure for calculating by insurers the normative ratio of assets and insurance obligations assumed by them”.
5 Order of the Ministry of Finance of the Russian Federation dated 16.12.2005 N ° 149n “On Approval of the Requirements for the Composition and Structure of Assets Accepted to Cover Insurers' Own Funds”.
6 Order of the Ministry of Finance of the Russian Federation dated 08.08.2005 No. Yuon “On Approval of the Rules for Placement of Insurance Reserve Funds by Insurers”.
7 Excluding the share of foreign reinsurers.
8 Order of the Ministry of Finance of the Russian Federation “On approval of the Rules for the formation of insurance reserves for insurance other than life insurance” dated 11.06.2002 No. 51n.
9 Order of the RF Ministry of Finance dated 09.04.2009 No. 32n “On Approval of the Procedure for Formation of Insurance Reserves for Life Insurance”.
10 The composition and standard of expenses for doing business on compulsory medical insurance are determined by the territorial fund of compulsory medical insurance.
(Materials are given on the basis of: A.G. Gryaznova. E.V. Markina Finance. Textbook. 2nd ed. - M.: Finance and Statistics, 2012)
18.2. Forms and types of financial risk insurance
The most complex and dangerous in terms of their financial consequences, risks that cannot be neutralized through its internal mechanisms, are subject to insurance.
Insurance of financial risks is the protection of the property interests of the enterprise in the event of an insured event by special insurance companies (insurers) at the expense of funds formed by them by receiving insurance premiums (insurance contributions) from insurers.
In the process of insurance, the enterprise is provided with insurance protection for all the main types of its financial risks - both systematic and non-systematic. At the same time, the amount of compensation for the negative consequences of financial risks by insurers is not limited - it is determined by the real value of the insurance object (the size of its insurance assessment), the sum insured and the amount of insurance premium paid.
When resorting to the services of insurers, the company must first of all determine the object of insurance - those types of financial risks for which it intends to provide external insurance protection. The composition of such financial risks is determined by a number of conditions, the main of which are (Fig. 16.2.).
obligatory
financial insurance
risk
Acceptable
price
insurance
protection by
at risk
CONDITIONS
Financial
RISK ENTERPRISE
Availability
enterprises
insurance
interest
unpredictability
and unregulated
risk within
enterprises
High degree
probabilities
occurrence
financial
risk
Inability to fully compensate for financial losses due to risk at the expense of own financial resources
Figure 16.2. Basic conditions for insuring financial risks by an enterprise.
1. Risk insurability. Despite the fact that the legislation does not prevent insurance of any types of financial risks of an enterprise, the market for insurance products for these risks is limited to a certain extent. This limitation is caused by the unpredictability of the probability of the occurrence of an insured event for certain financial risks in the conditions of unstable economic development of the country, the high probability of an insured event for a number of financial risks in the process of transition to market relations. Certain restrictions on the insurability of individual financial risks are also introduced by the implementation of an extremely aggressive financial policy by a number of enterprises in certain aspects of financial activity. Therefore, when determining the possibility of insuring its financial risks, an enterprise must find out the feasibility of such insurance, taking into account the insurance products offered by the market.
2. Compulsory insurance of financial risks. A number of financial risks V subject to compulsory insurance in accordance with the conditions of state regulation of economic activity of enterprises. For such financial risks, the enterprise has no alternative management decisions in terms of their composition. This primarily refers to the need for compulsory insurance of assets, provided for by the relevant regulatory legal acts.
3. Availability at the enterprise insurable interest. It is characterized by the financial interest of the enterprise in insuring certain types of its financial risks. This interest is determined by the composition of the financial risks of the enterprise, the possibility of neutralizing them through internal mechanisms, the level of probability of a risk event, the amount of possible damage to individual financial risks, and a number of other factors.
Distinguish between full and partial insurable interest of enterprises - insurers of financial risks.
Full insurable interest of the enterprise determines his need V compensation by the insurer for the full amount of financial losses incurred upon the occurrence of an insured event. In other words, the full insurable interest reflects the need for the insurer to provide full insurance coverage for the type of financial risk under consideration.
Partial insurable interest of the enterprise determines his need V reimbursement by the insurer of only a certain proportion of financial losses incurred upon the occurrence of an insured event. This form of insurable interest is associated with the possibility of using internal mechanisms by the enterprise to neutralize certain financial risks, the effect of which does not, however, ensure the full elimination of their negative financial consequences.
The presence of a full or partial insurable interest of an enterprise determines the need for voluntary use of the services of insurers in search of insurance coverage for certain types of financial risks.
4. Inability to fully compensate for financial losses due to risk at the expense of own financial resources. This condition is one of the main ones in the formation of the insurable interest of the enterprise. In accordance with this condition, first of all, the financial risks of the enterprise, which are classified as catastrophic in terms of the size of possible financial losses, need insurance protection. Given this condition, the enterprise must provide full or partial insurance for all types of insured catastrophic risks inherent in its financial activities. In some cases, this determines the need for insurance and certain financial risks of the critical group in the presence of a high level of their concentration in the enterprise as part of a number of ongoing financial transactions.
5. High probability of occurrence of financial risk. This condition determines the need for insurance protection for certain financial risks of their admissible and critical groups, if the possibility of their neutralization is not fully provided by its internal mechanisms. In this case, the company has, as a rule, only a partial insurable interest.
6. Unpredictability and uncontrollability of risk within the enterprise. The lack of experience or a sufficient information base sometimes does not allow within the enterprise to determine the degree of probability of a risk event occurring for individual financial risks or to calculate the possible amount of financial damage for them. Even if the financial risk is clearly identified by type, but its level is not assessed, this deprives financial managers of the possibility of effectively managing it, first of all, choosing alternative measures to neutralize it through internal mechanisms. In these cases, the preferred management decision is to transfer the financial risk to the insurer.
7. Acceptable cost of insurance protection at risk. This condition is one of the main ones in ensuring the effectiveness of financial risk insurance. If the cost of insurance protection does not correspond to the level of financial risk or the financial capabilities of the enterprise, it should be abandoned by strengthening the appropriate measures to neutralize it through internal mechanisms. In some cases, if it is impossible to carry out external insurance due to its high cost and the ineffectiveness of internal mechanisms for neutralizing financial risks, the enterprise should refuse to carry out the corresponding financial transaction.
(first of all, this condition refers to the catastrophic financial risks of the enterprise).
Offered on the market insurance services that provide insurance for the financial risks of an enterprise are classified according to a number of criteria (Fig. 16.3.).
CLASSIFICATION OF INSURANCE OF FINANCIAL RISKS OF THE ENTERPRISE
BY FORSH COOKING
BY OBJECTS STRYAKOVRNIA
ON VOLUME
STRVHOVRNIA
SOFTWARE USED SYSTEIRN
insurance
seen
insurance
Compulsory insurance Voluntary insurance
property insurance
Liability Insurance
Personnel insurance
Full insurance Partial insurance
Insurance at the actual value of the property Insurance under the proportional liability system Insurance under the first risk system
Insurance using an unconditional deductible Insurance using a conditional deductible
Property (assets) insurance
Credit risk insurance Deposit risk insurance Investment risk insurance
Insurance of indirect financial risks
financial guarantee insurance
Other types of financial risk insurance
Figure 16.3. Classification of insurance of financial risks of the enterprise according to the main features.
1. According to the forms of insurance, it is subdivided as follows:
Compulsory insurance. It is a form of insurance based on the legal obligation of its implementation for both the insured and the insurer. The mass nature of this insurance can significantly reduce the size of insurance rates and simplify the procedure for its implementation. However, compulsory insurance does not fully take into account the features of the insured assets, the different probability of an insured event occurring at enterprises of different types, the financial capabilities of the insured and a number of other factors that individualize insurance protection.
The main object of compulsory insurance at enterprises is its assets (property), which are part of its production fixed assets. From the standpoint of financial management, insurance of these assets is considered as insurance of the financial risks of the enterprise. This is due to the fact that the loss of uninsured assets in the form of production fixed assets, which are formed mainly from equity, can cause a significant decrease in the financial stability of the enterprise. In this regard, in a more extended interpretation, it is insurance against the risk of a decrease in the level of financial stability of an enterprise, associated with a possible decrease in the share of equity capital.
Assets (property) of the enterprise, which are part of its production fixed assets, are insured on a mandatory basis within their book value (in the event of a change in their book value, the terms of compulsory insurance are subject to automatic revision). The maximum insurance tariffs and the minimum sums insured for each insurance object are determined taking into account the level of risk and are approved by the government. At the same time, the minimum sum insured is set at the level of the residual value of insurance objects.
Voluntary insurance. It characterizes a form of insurance based only on a voluntarily concluded contract between the insured and the insurer based on the insurable interest of each of them. The principle of voluntariness, based on the insurable interest of the parties, applies to both the enterprise and the insurer, allowing the latter to avoid insuring dangerous or unprofitable financial risks.
2. By objects of insurance current practice in the country distinguishes the following groups:
Property insurance. It covers almost all the main types of tangible and intangible assets of the enterprise. Insurance relations in property insurance are determined by the following obligations of the parties: the insured must ensure the timely payment of insurance premiums (insurance premium), and the insurer must ensure compensation for financial damage incurred by the enterprise upon the occurrence of an insured event. In the case of property insurance, not only the owners of the relevant assets, but also legal entities interested in their safety (for example, tenants of premises, lessees of equipment, commission stores, etc.) can act as an insured.
Liability Insurance. Its object is the responsibility of the enterprise and its personnel to third parties who may suffer financial and other types of damage as a result of any action or inaction of the insured. This insurance provides insurance protection for the enterprise against the risks of financial losses that may be imposed on it by law in connection with the damage caused by it to third parties - both individuals and legal entities. The relations of the parties in liability insurance are determined by the following mutual obligations: the insured is obliged to pay the necessary insurance premiums (insurance premium), and the insurer is obliged to reimburse the insured for the amount of money payable by them to third parties for the damage caused. Liability insurance provides an enterprise with insurance protection for a significant number of types of its financial risks.
Personnel insurance. It covers the company's life insurance of its employees, as well as possible cases of loss of their ability to work, disability and others. Specific types of this insurance are carried out by the enterprise on a voluntary basis at the expense of its profits in accordance with the collective labor agreement and individual labor contracts.
3. By volume of insurance distinguish the following groups:
Full insurance. It provides insurance protection for the enterprise against the negative consequences of financial risks in their entirety upon the occurrence of an insured event.
Partial insurance. It limits the insurance protection of an enterprise against the negative consequences of financial risks both by certain sums insured and by a system of specific conditions for the occurrence of an insured event.
4. By used insurance systems allocate:
Insurance for the actual value of the property. It is used in property insurance and provides insurance coverage for the full amount of financial damage caused to the insured types of company assets (in the amount of the sum insured under the contract, corresponding to the size of the insurance valuation of the property). In other words, under this system of insurance insurance compensation can be paid in the full amount of the financial damage suffered.
Proportional liability insurance. It provides only partial insurance coverage for certain types of financial risks. In this case, the insurance compensation for the amount of financial damage incurred is carried out in proportion to the insurance coefficient (the ratio of the insurance amount determined by the insurance contract and the size of the insurance assessment of the insurance object). Taking into account this insurance coefficient, the amount of insurance compensation paid under the proportional liability system is determined by the following formula:
where SV P0 - the maximum amount of insurance compensation paid to the enterprise in case of insurance under the proportional liability system;
Y - the amount of financial damage incurred by the enterprise as a result of the occurrence of an insured event; SS D - the sum insured, determined by the insurance contract under the proportional liability system; СС 0 - the size of the insurance valuation of the insurance object, determined at the conclusion of the contract.
First risk insurance. The "first risk" means the financial loss incurred by the insured upon the occurrence of an insured event, estimated in advance when drawing up the insurance contract as the amount of the sum insured indicated in it. If the actual financial loss exceeded the stipulated sum insured (the insured first risk), it is compensated under this insurance system only within the sum insured agreed upon earlier by the parties.
Unconditional deductible insurance, The deductible is the minimum part of the damage incurred by the insured that is not compensated by the insurer. When insuring using an unconditional deductible, the insurer in all insured events pays the insured the amount of insurance compensation minus the amount of the deductible, leaving it with him. With this insurance system, the amount of insurance compensation is determined by the following formula:
The amount of insurance compensation paid to the enterprise under the insurance system using an unconditional deductible:
Y - the amount of financial damage incurred by the enterprise as a result of the occurrence of an insured event; FR - the amount of the franchise agreed by the parties.
Insurance with conditional deductible. With this system of insurance, the insurer is not liable for financial damage incurred by the company as a result of the occurrence of an insured event, if the amount of this damage does not exceed the amount of the agreed deductible. If the amount of financial damage exceeded the amount of the deductible, then it is reimbursed to the enterprise in full as part of the insurance compensation paid to it (that is, without deducting the amount of the deductible in this case).
5. By type of insurance in the process of its classification, they distinguish:
Property (assets) insurance. The basics of such insurance are considered when characterizing its mandatory form. However, its capabilities can be significantly expanded through voluntary insurance of tangible and intangible (intellectual property) assets of the enterprise. Unlike compulsory, this type of voluntary insurance has the following features:
a) insurance can cover the entire complex of tangible and intangible assets of the enterprise, and not only its production fixed assets;
b) these assets can be insured in the amount of their real market value (i.e., according to their replacement, and not balance valuation) if there is an appropriate expert assessment;
c) insurance of various types of these assets can be carried out with several (rather than one) insurers, which guarantees a stronger degree of reliability of insurance protection, in particular, in the event of bankruptcy of the insurers themselves (such insurance is one of the directions for diversifying financial risks for an enterprise);
d) in the process of insuring these assets, the inflation risk of the prospective period can be taken into account as its component.
Credit risk (or settlement risk) insurance. The object of such insurance is the risk of non-payment (late payment) on the part of buyers of products when providing them with a commodity (commercial) loan or when delivering products to them on terms of subsequent payment. This insurance is carried out, as a rule, by the enterprise itself, attributing the costs of it to the debtor. The credit risk of an enterprise can also be insured by the buyer of the product (in the form of his financial liability) with the transfer of the insurance policy to the seller. This type of insurance can also be extended to the financial risks of consumer credit in its long-term forms and the high cost of goods.
Deposit risk insurance. It is produced in the process of implementation by the enterprise of both short-term and long-term financial investments using various deposit instruments. The object of such insurance is the financial risk of non-return by the bank of the amount of principal and interest on deposits and certificates of deposit in the event of its bankruptcy.
Investment risk insurance. The object of this type of insurance is, as a rule, numerous simple risks of real investment, first of all, the risks of untimely completion of design work on an investment project, untimely completion of construction and installation work on it, failure to reach the planned design production capacity, and others. In foreign practice, it is common to insure the receipt of envisaged income for financial investments, however, in our country this type of financial risk is still classified as uninsurable due to the high probability of an insured event occurring (under such conditions, the amount of insurance premium may exceed the amount of projected investment income).
Insurance of indirect financial risks. Such insurance covers many types of financial risks of the enterprise if the insurer has sufficient insurable interest. This type of insurance covers such varieties as insurance of estimated profit, insurance of lost profits, insurance of exceeding the established budget of capital or current costs, insurance of lease payments and others.
Financial guarantee insurance. An enterprise resorts to this type of insurance in the process of attracting borrowed funds (in the form of bank, commercial and other types of loans) at the request of creditors. The object of such insurance is the financial risk of non-repayment (late repayment) of the amount of the principal debt and non-payment (late payment) of the established amount of interest. Financial guarantee insurance assumes that certain financial obligations of the enterprise related to the attraction of borrowed capital will be fulfilled in full accordance with the terms of the loan agreement.
Other types of financial risk insurance. Its object is other types of financial risks that are not included in the traditional types of insurance discussed above. With the mutual satisfaction of the parties' insurance interests, the composition of other types of insurance can have a wide range (due to the inclusion of previously uninsurable risks, innovative insurance products, etc.).
Relations between an enterprise and an insurance company are built on the basis of an insurance contract - an agreement between the insured and the insurer that regulates their mutual rights and obligations under the terms of insurance of certain types of financial risks. The basis of this contract, which determines the reliability of insurance protection and its effectiveness, is the terms of insurance. The most important of these conditions are (Fig. 16.4.):
Volume of insurance
responsibility
insurer
Insurance amount
property valuation
policyholder
Size
insurance
amounts
MAIN CONDITIONS
insurance
The amount of the insurance tariff (tariff rate)
Procedure for determining the amount of insured damage
The size and nature of the insurance deductible
Payment procedure
insurance
prizes
Insurance amount
premiums (payments,
fee)
Figure 16.4. The composition of the main conditions of insurance of financial risks of the enterprise.
1. The volume of insurance liability of the insurer. This element characterizes the list of risks accepted by the insurer for this object of insurance. This list of risks stipulates possible options for the occurrence of an insured event, as a result of which the insurer undertakes to pay the amount of insurance compensation to the insured. The volume of insurance liability of the insurer determines the full or partial level of insurance protection provided by him to the enterprise for specific types of its financial risks.
2. The size of the insurance valuation of the property of the insured. This element is included in the terms of property insurance. It characterizes the method of valuation of the relevant assets (by book value, by real market value, etc.) And her results. Third-party experts, “property appraisers”, are involved in the implementation of such an assessment, if necessary.
3. The amount of the sum insured. The sum insured characterizes the amount of money, V within which the insurer is liable under the insurance contract. Whatever the actual amount of damage incurred by the enterprise upon the occurrence of an insured event, it cannot be compensated by the insured in amounts exceeding the sum insured. According to its economic content, the sum insured represents the maximum amount of insurance protection of the enterprise for specific types of financial risks insured by it.
4. The amount of the insurance tariff (tariff rate). It characterizes the specific cost of insurance services in relation to the sum insured or the specific price of insurance of the corresponding type of risk. The current methods for calculating tariff rates (actuarial calculations) provide for a variety of approaches to setting their level - based on the mathematical definition of the probability of an insured event, expert assessments, the use of the analogy method, and others. The tariff rate (or gross rate) is calculated by the insurer as the sum of the net rate for a specific type of insurance and the amount of the load:
ST \u003d HC + N str, where ST is the insurance rate (gross rate) for a specific type
insurance;
HC - net rate for this type of risk; Peter is the load of the insurer for this type of risk.
Net rate provides the insurer with the formation of a fund for the payment of insurance compensation, taking into account the probability of an insured event for this type of risk. includes the specific costs of the insurer for the implementation of insurance operations, the formation of a reserve fund, the standard level of its profitability and some other elements. The insurance rate (or gross rate) for a specific type of insurance is set in two options - as a percentage of the sum insured or in absolute terms per hundred monetary units currency of the sum insured.
5. The amount of the insurance premium (payment, contribution). The insurance premium (payment, installment) characterizes the total amount of money that the policyholder must pay to the insurer under the terms of the insurance contract. According to its economic content, the size of the insurance premium determines the full price of insurance by the enterprise of the corresponding financial risk or a certain complex of them. The calculation of the amount of the insurance premium is based on the sum insured provided for by the contract, the term of insurance and the amount of the insurance tariff (tariff rate).
6. The procedure for paying the insurance premium. In accordance with the current practice, two principal approaches to the payment of an insurance premium are used:
one-time payment (one-time premium). It is, as a rule, of an advance nature, i.e. paid to the insurer immediately after the signing of the insurance contract. This form of payment is used for short-term types of insurance of financial risks or for their long-term insurance with a low insurance premium;
current payment (current premium). It is distributed over specific time intervals of the total term of the insurance contract - years (if the term of the contract is set to several years), half-years, quarters, months. The amount of each current payment in this case is determined by dividing the total insurance premium by the number of time intervals (or in other amounts as agreed by the parties).
From the standpoint of the enterprise, it is more profitable to pay the insurance premium in the order of current payments.
7. The size and nature of the insurance deductible. This element is included in the terms of insurance when it is carried out using an unconditional or conditional deductible. In order to strengthen external insurance protection, an enterprise should strive to minimize the size of the deductible and give preference to its conditional type (out of the two alternative financial risk insurance systems under consideration).
8. The procedure for determining the amount of insurance damage. The insured loss characterizes the value of the destroyed or partially lost assets of the enterprise, as well as the monetary value of the financial losses of the insured or third parties in whose favor the insurance contract is concluded. Insured damage can be determined by the terms of insurance in an indisputable manner (if its amount can be unambiguously determined) or by agreement of the parties. The terms of insurance may provide for the involvement of special experts - "accident commissioners" in assessing the amount of the insured's financial losses, designed to find out the causes of the insured event and determine the amount of damage.
9. Procedure for payment of insurance compensation. The insurance indemnity is understood as the amount paid by the insurer to cover the financial loss of the insured upon the occurrence of an insured event. The procedure for its payment establishes the deadline for settlements, their form (type of payment), the possibility of deducting the unpaid amount of the insurance premium from it. This element also determines the conditions under which the insurance indemnity is not paid (in case of an intentional crime, etc.).
Taking into account the terms of insurance of certain types of financial risks proposed for agreement, the enterprise determines its effectiveness. The main parameters for evaluating the effectiveness of financial risk insurance are:
The probability of an insured event occurring for the given type of financial risk;
The degree of insurance coverage for risk, determined by the insurance coefficient (the ratio of the sum insured to the size of the insurance valuation of the property);
The size of the insurance tariff in comparison with its average size for insurance market for this type of insurance;
The amount of the insurance premium and the procedure for its payment during the insurance period;
The amount of the deductible - conditional or unconditional (when using the appropriate insurance systems).
The effectiveness of insurance of certain types of financial risks of an enterprise, determined taking into account these parameters, is the basis for making managerial decisions on this issue.
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Reliable protection of property interests in the event of an insured event is insurance of financial risks. Insurance is carried out by specialized insurance companies at the expense of financial funds formed by the receipt of insurance premiums in them. When insuring, the insured is provided with systematic and non-systematic insurance protection for the main types of his financial risks. The amount of compensation in the event of an insured event will depend on several factors:
- value of the object of insurance (assessed value);
- the amount of the sum insured under the financial risks insurance contract;
- the amount of the insurance premium (insurance fee).
The market of insurance services on the territory of the Russian Federation, providing reliable insurance of financial risks, is quite wide. Insurance is grouped according to a number of main features:
- forms of insurance;
- objects of insurance;
- volumes of insurance;
- insurance systems;
- types of insurance.
Forms of insurance
Financial risk insurance can be mandatory and voluntary. At compulsory insurance the main object of insurance is the financial assets that are part of the operating fixed assets of the insurer, formed at the expense of equity. The loss of uninsured assets (operating fixed assets) causes a significant decrease in financial stability at the insured's enterprise. Therefore, financial risk insurance can be considered as protection to reduce the level of financial instability of the insured's own capital.
With a voluntary form of insurance, relations between insurance participants are formed on a voluntary basis and depend on the pursued insurable interest of each of them. The voluntary form of insurance allows the insurer to evade unprofitable and dangerous insurance of financial risks for him, and the insured to reasonably and efficiently manage his monetary assets.
Objects of insurance
The objects of insurance include the following main groups:
- property insurance;
- personnel insurance;
- liability Insurance.
Property insurance covers all types of intangible and tangible assets of an enterprise. Both the owners of the relevant assets and legal entities responsible for their safety (lessees, tenants and others) can act as insurers.
In case of property insurance, the policyholder is responsible for the timely payment of insurance premiums determined by the financial risks insurance contract. For the insurer - ensuring compensation for financial damage in the event of an insured event.
Personnel insurance allows you to insure the life and health of the insured's employees, as well as possible loss their incapacity for work, disability, etc. This type of insurance is voluntary, financed from the profits of the enterprise in accordance with the collective labor agreement.
When insuring liability, the object of insurance is the liability of the enterprise, as well as its personnel, to third parties for financial damage incurred in the event of improper performance or failure to perform the functional duties of the insured. Financial risk insurance will provide insurance protection for the insured against financial losses that may occur upon presentation of claims from third parties to compensate for the damage received.
Volumes of insurance
Insurers distinguish groups according to the volume of insurance: partial and full insurance. With partial insurance, the insurance protection of the insured against possible negative consequences in the event of an insured event is limited. As a rule, this manifests itself in a limited amount of insurance indemnities.
With full insurance, the policyholder is provided with insurance protection in full in the event of possible insured events that entail negative consequences of financial risks.
Insurance systems
Financial risk insurance depends on the insurance systems used:
- first risk system;
- proportional liability system;
- unconditional franchise system;
- conditional franchise system;
- real value system.
When insuring under the first risk system, the insurer compensates for the financial damage incurred by the insured in the event of an insured event, but not more than the sum insured specified in the previously concluded insurance contract.
Under a proportional liability system, the insurer provides partial insurance coverage for certain types of financial risks. The amount of insurance compensation is determined using the insurance coefficient.
When insuring under the unconditional deductible system, the insurer receives insurance compensation minus the amount of the deductible. As for insurance using the conditional deductible system, the insurer accrues insurance compensation only if the amount of damage from the insured event that has occurred exceeds the amount of the deductible.
When insuring under the system of the actual value of the property, the insured is provided with full insurance protection in the full amount of the financial damage caused.
Types of insurance
Financial risk insurance is classified into subspecies, which are an independent type of insurance:
- insurance of assets (property);
- settlement risk insurance (credit risks);
- deposit risk insurance;
- investment risk insurance;
- insurance of indirect financial risks;
- financial guarantee insurance;
- other insurance of financial risks.
Financial risk is the probability of damage occurring as a result of any operations in the financial, credit and exchange areas, transactions with stock values, i.e. risk arising from the nature of these operations.
Financial risk insurance - provides for the obligations of the insurer for insurance payments in the amount of full or partial compensation for the loss of income (additional expenses) of the insured person caused by the following events:
- a) stopping production or reducing production as a result of specified events;
- b) job loss (for individuals);
- c) bankruptcy;
- d) currency risks;
- e) unforeseen expenses;
- f) non-fulfillment of contractual obligations by the counterparty of the insured person who is the creditor under the transaction;
- g) court costs (expenses) incurred by the insured person;
- h) other events.
In any economic activity, there is always a risk of monetary losses arising from the specifics of certain business transactions. The risk of such losses is represented by financial risks. Financial risks are commercial risks. Risks are pure and speculative. Pure risks mean the possibility of a loss or a zero result. Speculative risks are expressed in the possibility of obtaining both positive and negative results. Financial risks are speculative risks. An investor, making a venture capital investment, knows in advance that only two types of results are possible for him - income or loss. A feature of financial risk is the likelihood of damage as a result of any operations in the financial, credit and exchange areas, transactions with stock securities, i.e. the risk that arises from the nature of these operations.
Financial risks include:
- 1. inflationary risk - a type of financial risk, which consists in the possibility of depreciation of the real cost of capital, as well as the expected income and profit of the enterprise from financial transactions or operations due to rising inflation.
- 2. Tax risk should be understood as the probability of losses that an enterprise may incur as a result of changes in tax laws or as a result of errors made by an enterprise in calculating taxes. It includes:
- - probability additional payments to the budget as a result of an unplanned increase in tax rates;
- - the probability of losses as a result of the cancellation of benefits;
- - a significant increase in debt on payments to the budget;
- - losses as a result of tax errors of the accountant.
- 3. credit risk - the probability that the partners-participants of the contract will be unable to fulfill the contract obligations. There are: trading credit risk and bank credit risk.
- 4. deposit risk - the probability of losses as a result of not returning the company's deposits in banks, this is if the bank is unsuccessfully chosen.
- 5. currency risk - the risk of incurring losses as a result of unfavorable short-term and long-term fluctuations in exchange rates in international financial markets.
- 6. investment risk - the probability of financial losses in the process of investment activities. There are two types investment risk: the risk of financial investment (in the securities market) and the risk of real investment (project risks). In addition: nationwide - with the political and economic situation in the country, sectoral - is assessed in the course of industrial analysis. Risk at the firm level is assessed in the analysis of the financial condition. The risk is related to the individual position of the investor in the company. It is analyzed in two positions: the right of the investor (dividend), the market position of the share.
- 7. interest rate risk - the danger of losses by commercial banks, credit institutions, investment funds, selenge companies as a result of exceeding interest rates, paid by them on attracted funds, over the rates on loans granted.
- 8. The risk of lost financial benefit is the risk of indirect (collateral) financial damage (lost profit) as a result of failure to implement any event (for example, insurance) or stop business activities.
Investing capital is always accompanied by a choice of investment options and risk. Choice various options capital investment is often associated with significant uncertainty. For example, a borrower takes out a loan, which he will repay from future income. However, these incomes are unknown to him. It is quite possible that future income may not be enough to repay the loan. In investing capital, you also have to take a certain risk, i.e. choose a certain level of risk. For example, an investor must decide where he should invest his capital: in a bank account, where the risk is small, but the returns are small, or in a more risky, but significantly profitable event (selling operations, venture capital investment, buying shares). To solve this problem, it is necessary to quantify the amount of financial risk and compare the degree of risk of alternative options.
Therefore, the financial risk that arises in the sphere of enterprise relations with banks and other financial institutions is especially important for the conditions of Russia. financial institutions. The financial risk of a firm's activities is usually measured by the ratio borrowed money to own: the higher this ratio, the more the enterprise depends on creditors, the more serious the financial risk, since the restriction or termination of lending, tightening of credit conditions usually entails difficulties and even stop production due to lack of raw materials, materials, etc. For the securities market, riskiness is a property of almost any transaction due to the fact that the effectiveness of the transaction is not fully known at the time of its conclusion. Some exceptions are government interest-bearing paper. But if we take into account the unpredictability of inflation or exchange rate currencies, then the absence of risk, even in relation to US Treasury bills, is in doubt.
Financial risk, like any risk, has a mathematically expressed probability of a loss, which is based on statistical data and can be calculated with a fairly high accuracy. To quantify the amount of financial risk, it is necessary to know all the possible consequences of any individual action and the likelihood of the consequences themselves. Probability means the possibility of obtaining a certain result. As applied to economic problems, the methods of the theory of probability are reduced to determining the values of the probability of the occurrence of events and to choosing the most preferable of the possible events based on the largest value of the mathematical expectation. In other words, the mathematical expectation of an event is equal to the absolute value of this event, multiplied by the probability of its occurrence.
Financial risks also include the risk of indirect (collateral) financial damage (non-receipt or shortfall in profit) as a result of the occurrence of an insured event - stoppage of production (trade) due to loss or damage to the insured property. This risk threatens, first of all, industrial enterprises.
Financial risks are indirectly related to property insurance and apply mainly to the financial-credit and exchange spheres. At the same time, there is one exception: financial risks include the risk of non-payment on a consumer loan, where one of the subjects of insurance may be an individual, not a legal entity. There are many risks associated with the financial and credit sphere that cannot be fully attributed to financial risks. These are, for example, the risks of loss caused by:
- - fraud of bank employees;
- - acceptance by the bank of counterfeit banknotes;
- - forgery or loss of various securities;
- - forgery of checks, bills of exchange, cash warrants;
- - theft, destruction or damage to banknotes, precious stones, metals, securities, insurance policies, account books, etc., located in the bank premises.
These risks, although related to the financial and credit sphere, are more likely not financial, but property, but their insurance is of great importance for commercial banks and should be widely used.
We can offer the following classification of insurance of financial risks.
- 1. Credit insurance, including insurance:
- - risk of non-repayment of the loan (insurant - bank);
- - liability of the borrower for non-return (non-repayment) of the loan (insurant - borrower);
- - untimely payment of interest on loans to borrowers;
- - consumer credit(the insured is an individual);
- - commercial loan(bills insurance);
- - deposits (insurant - bank or depositor).
- 2. Insurance of indirect risks, including:
- - in case of loss of profit (income);
- - additional expenses (as a separate type of insurance);
- - temporary profit, rent, etc.
- 3. Exchange risk insurance, including:
- - risks of non-payment in commercial transactions;
- - brokerage firm commission;
- - operations with securities.
- 4. Insurance against the risk of unlawful application of financial sanctions by state tax inspectorates. In accordance with the Civil Code, financial risk insurance is a set of types of insurance that provide for the obligations of the insurer for insurance payments in the amount of full or partial compensation for loss of income (additional expenses) caused by the following events:
- - stopping production or reducing production as a result of specified events;
- - job loss;
- - Unexpected expenses;
- - non-fulfillment of contractual obligations by the counterparty of the insured person who is the creditor under the transaction;
- - court costs (expenses) incurred by the insured person;
- - other events.
