MODERN MODELS OF MODERNIZATION OF INSURANCE COMPANIES

Abstract

In this article, the influence of the management model of the company, which is one of the leaders in the insurance market, on the management of the company, their interdependence, the impact on the investment potential of the company, the financial activity of insurance companies organize to find sources, of the company reserves, their mechanism of formation, analysis of the main financial and economic indicators of the insurance company, participation of the insurance company in the insurance market, approaches and views of foreign scientists in this regard, investment policy of insurance companies, insurance market problem analysis, development prospects are described in detail. Scientific proposals and practical recommendations have been developed for the further development and improvement of their financial and economic competence, while modern management models are widely applied to insurance companies in Uzbekistan.

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Bakhriev Dilshod Rizvonkulovich. (2024). MODERN MODELS OF MODERNIZATION OF INSURANCE COMPANIES. European International Journal of Multidisciplinary Research and Management Studies, 4(12), 59–64. Retrieved from https://inlibrary.uz/index.php/eijmrms/article/view/57627
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Abstract

In this article, the influence of the management model of the company, which is one of the leaders in the insurance market, on the management of the company, their interdependence, the impact on the investment potential of the company, the financial activity of insurance companies organize to find sources, of the company reserves, their mechanism of formation, analysis of the main financial and economic indicators of the insurance company, participation of the insurance company in the insurance market, approaches and views of foreign scientists in this regard, investment policy of insurance companies, insurance market problem analysis, development prospects are described in detail. Scientific proposals and practical recommendations have been developed for the further development and improvement of their financial and economic competence, while modern management models are widely applied to insurance companies in Uzbekistan.


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EIJMRMS ISSN: 2750-8587

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MODERN MODELS OF MODERNIZATION OF INSURANCE COMPANIES

Bakhriev Dilshod Rizvonkulovich

Banking and Finance Academy of Republic of Uzbekistan

AB O U T A RT I C L E

Key words:

Management models, corporate

management, modern management models,
insurance market, insurance organizations, joint

stock companies, investors, insurance reserves,
investment policy, transparency, reliability, the

investment portfolio of insurance organizations,
shareholders, insurance premium, insurance

coverage, coefficient of damage, types of
insurance, models, management, insurance

sectors (insurance industries).

Received:

29.11.2024

Accepted

: 03.12.2024

Published

: 09.12.2024

Abstract:

In this article, the influence of the

management model of the company, which is one
of the leaders in the insurance market, on the

management

of

the

company,

their

interdependence, the impact on the investment

potential of the company, the financial activity of
insurance companies organize to find sources, of

the company reserves, their mechanism of
formation, analysis of the main financial and

economic indicators of the insurance company,
participation of the insurance company in the

insurance market, approaches and views of
foreign scientists in this regard, investment policy

of insurance companies, insurance market
problem analysis, development prospects are

described in detail. Scientific proposals and
practical recommendations have been developed

for the further development and improvement of
their financial and economic competence, while

modern management models are widely applied

to insurance companies in Uzbekistan.

INTRODUCTION

The development of the insurance market in the countries of the world helps to accelerate the growth

rate of the national economy. In this, the role of insurance companies is extremely important.

In the modern economy, modern management in insurance organizations is an interdependent and

interrelated system. The cash flow of foreign insurance companies in the insurance market is equal to

the volume of its direct insurance premiums and is higher than the volume of reinsurance operations.

From the data of world insurance markets, we can see that the income of insurance companies as a

VOLUME04 ISSUE12

DOI:

https://doi.org/10.55640/eijmrms-04-12-10

Pages: 59-64


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EUROPEAN INTERNATIONAL JOURNAL OF MULTIDISCIPLINARY RESEARCH
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result of their activities in the insurance market his harm level high has been insurance types according

to insurance packages own in time and in full covered to give for main source which in turn is a complex

system resulting from modern management.

Today's in the day insurance in the field consistent reforms in our economy deep structure of changes
main part being is coming As a result insurance for employees of the field wide opportunity and benefits

created they are being prepared by competitive products in the market strong place take over is coming.

The financial stability of insurance companies depends more on the proper organization of
management.

LITERATURE REVIEW

It turns insurance companies into competitive companies by introducing management models of
modern and today's demanding companies into the economy.

Developed countries insurance of companies own head style there is and although their basis is the

same, they differ in the image aspect. Corporate management phenomenon as admit taken agency of

theory surface upon arrival depends. The same while, agency theory corporate ownership and control
based on their separation from each other. Such a separation is between corporate management

(control) trust and fiduciary duty (Fiduciary duty is interpreted differently in the corporate law of

different countries, but simply put, the professional agent (manager) hired by the party (owner) putting
their interests above their own, as in the case of the owners of a company property relationship to

express means) based on the owner protects interests and maximizes shareholder value.

Current issues, problems and solutions of the insurance industry are reflected in the scientific works

and literature of a number of scientists.

A lot of scientific research is being conducted on current issues and problems in the organization of this

activity and their solutions.

For example, Umarov (2009) on the management of the development of insurance activities in
Uzbekistan, the analysis of the current situation and problems in the development of insurance

activities, the formation and development of the institutional base of insurance activities expressed his

thoughts.

RESEARCH METHODOLOGY


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Observation, data collection, summarization, comparison, economic views of insurance activities of

domestic and foreign scholars, research on problems in the field and their solutions. and legal and

regulatory documents related to the field were studied and conclusions and proposals were developed.

ANALYSIS AND DISCUSSION OF RESULTS

Insurance in the activity management models analysis does we are we can calculate the impact of

management on the company's financial situation through formulas (Table 1).

In order to optimize the investment portfolio and reduce investment risks, scientists have created many
investment income models using available factors. Among them, Western scientists, Nobel Prize the

owners Fischer Sheffey Black and Myron Samuel Scholes of scientists We can cite the "Black-Scholes"

model.

The problem of optimizing the insurance company's investment portfolio is linear programming issues

to the series enters. The issue to solve from the start first we pay attention to the following indicators:

1)

The value of the insurance company's private funds (not related to liability) and temporarily

empty insurance reserves (related to liability) for a certain period of time;

2)

Portfolio optimization for choose received sure known one term;

3)

By choice received time at the end pending indicator and possible

The following deviations are predicted:

a) insurance premiums and other receipts taken into account when conducting investment policy;

b) insurance coverage;

4)

Determined from forecasts come out the following defined as:

a) insurance portfolio limits;

b) is available has been

𝑃

from dop portfolio pending profit;

5)

Investment portfolio, taking into account all existing restrictions optimization issue goal of the

function maximum is found. Otherwise it is a linear programming problem. The maximum expected
profit at the end of the selected period by finding a solution to the problem

𝑃

dope is found.


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By applying the above method, insurance companies can achieve the maximum profit, taking into

account the restrictions imposed on the investment portfolio.

Similar problems can be found in the activities of the country's insurance companies. These problems

are still waiting to be solved. For this reason, with an in-depth analysis of the sources of these problems,
the country insurance companies investment activities efficiency it is necessary to give suggestions and

opinions based on the development of measures to eliminate them.

Insurance companies investment activity the state mixing decrease, because the state interferes in the
activity of insurance investment companies companies empty funds wider placement opportunity

restriction, income from investment activity will reduce the efficiency .

Insurance organizations to deposits placed funds, securities according to percentage from income
removable tax rate reduce or cancel altogether. To improve the efficiency of the stock exchanges by

taking control of the state, because the stock exchanges operating in our country are in a imperceptible

condition.

Also, hedging is considered an investment made to reduce or prevent the risk associated with a decrease
in the value of this asset, that is, its price. Hedging can be compared to buying an insurance policy. For

example, if you own a building in an area that is prone to natural disasters, you would definitely want

to protect it from disasters, and for that you can use insurance for it. You can't prevent a disaster, but if
it does happen, you've taken precautions against that risk by insuring yourself. In hedging, the owner

has to make a choice between risk and profit: if he reduces the possible risk, the expected profit will

also decrease. For example, hedging is not free. An example of a natural disaster if we get both monthly

insurance policy pay if you go disaster face if not you will not be refunded. But a person still prefers to
pay in small amounts rather than a sudden payment. In many companies, the use of hedging is becoming

a key issue for business stability and profitability. In the current era of increased investment flows, the

need to identify and assess risks and the costs incurred for these purposes are becoming more
important.

The same can be seen in investment. Owners are using hedging to widen their exposure and reduce

their exposure. The owner uses various strategic analysis and methods to reduce the risk of price play

while performing the hedging method well. The most common way is to make another investment. Of
course, the example of the disaster given above has some uniqueness - if a disaster occurs, the damage

caused will be fully compensated, and sometimes it can be beneficial. But the hedging method is

considered to be a somewhat complex and complicated process.


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CONCLUSION

The development of management models in the insurance markets of Uzbekistan is considered as one

of the main principles of economic and social development at the national level, established conditions,

insurance traditions and development taking into account the state policy, leadership and support of
the national insurance market in the insurance sector (giving tax preferences, creation of new insurance

products, different forms of ownership) It is being developed and improved due to the fact that a wide

path has been opened to the activities of insurance organizations, etc.).

Based on the principles of the International Union of Insurance Supervisors (ISU), Uzbekistan economy,

is available infrastructure, insurance of companies activity, form of ownership, relations between

professional participants of the insurance market, based on the requirements of regulatory legal
documents regulating the insurance industry, direction of corporate management to the insurance

market of Uzbekistan according to the principles of SNXU it is appropriate to implement the following

measures:

To develop and maintain a premium policy that does not result in an excessive or inappropriate
increase in risk in the insurance company;

Corporate culture, goals, strategy, risk management, as well as acting in accordance with the long-term

interests of the insurance company, the interests of insured persons and other interested parties to
have the right attitude;

The Insurance Ombudsman (insurance bureau) has been operating in Great Britain for 30 years in

implementing the principles of SNXU. The Insurance Ombudsman protects the interests of

policyholders and consumers of insurance products. It is necessary to establish the activity of this
organization in Uzbekistan.

REFERENCES

1.

Markowitz H.M. (1959) Portfolio Selection: Efficient Diversification of Investment. Wiley. New
York.

2.

PULATOVICH T. J. (2023) WAYS TO REFORM THE PENSION SYSTEM BASED ON FOREIGN

EXPERIENCE //International journal of economic perspectives.

Т. 17. –

№. 1. –

С. 64

-71.

3.

Tursunov Jahongir Polatovich, Abdurakhmonov Ilyos Khurshidovich, Beknazarav Zafar
Ergashevich. (2020) The effectiveness of the organization of activities of insurance


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AND MANAGEMENT STUDIES

ISSN: 2750-8587

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intermediaries in the development of insurance networks. International Journal of Psychosocial

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Markowitz H.M. (1959) Portfolio Selection: Efficient Diversification of Investment. Wiley. New York.

PULATOVICH T. J. (2023) WAYS TO REFORM THE PENSION SYSTEM BASED ON FOREIGN EXPERIENCE //International journal of economic perspectives. – Т. 17. – №. 1. – С. 64-71.

Tursunov Jahongir Polatovich, Abdurakhmonov Ilyos Khurshidovich, Beknazarav Zafar Ergashevich. (2020) The effectiveness of the organization of activities of insurance intermediaries in the development of insurance networks. International Journal of Psychosocial Rehabilitation. Issue 04. P. 3888-3896

Aбдурaхмонов И. Х., Ўзбекистон Республикaсидa суғуртa тaрмоқлaрини ривожлaнтиришнинг концертуaл aсослaри. Иқтисодиёт фaнлaри доктори (DSc) илмий дaрaжaсини олиш учун тaқдим этилгaн диссертaция aвтореферaти. –Т.: - 2023. -78 б.

Aбдурaхмонов И.Х. (2018) Суғуртa нaзaрияси вa aмaлиёти. Ўқув қўллaнмa. –Т.: “Иқтисод-Молия” нaшриёти, 23-24-б.

Aбдурaхмонов И.Х. (2020) Суғуртa бозорини тaртибгa солиш вa пруденциaл нaзорaтнинг сaмaрaли мехaнизмлaрини жорий этиш, “Хaлқaро молия вa ҳисоб” илмий электрон журнaли. №2, aпрель, -11 б.

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Aндреевa Е.В., Русaковa О.И. Стрaховaя деятельность и ее регулировaние нa современном стрaховом рынке. Иркутск: Бaйкaльский госудaрственный университет, (2015) 160 с.

Очилов И.К. (2022) “Суғуртa тaшкилотлaридa бухгaлтерия ҳисоби вa молиявий тaҳлил методологиясини тaкомиллaштириш. ” ўқув қўллaнмa.

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