INSURER’S FINANCES IN THE CONTEXT OF DIGITALIZATION: THE ROLE OF INSURANCE RESERVES, SECURITY, AND FINANCIAL INNOVATIONS

Abstract

The article presents a comprehensive study of the transformation of insurance finances under the influence of the active development of digital technologies. The relevance of the topic is due to the change in approaches to the formation and use of financial resources of insurance companies in the modern digital environment, which requires a scientific understanding of the relationship between insurance reserves, financial security and innovations. The method of work is to substantiate the theoretical and methodological principles of the functioning of the insurer's finances in the conditions of digitalization, taking into account the role of key stabilizing and innovative factors. The methodological basis of the study is a set of methods of analysis and synthesis, a systematic approach to determine the relationships between the components of finance, comparative analysis to generalize approaches to risk management, as well as economic and statistical, graphical and tabular methods to assess the impact of digitalization on the activities of insurers. As a result of the study, the author systematized the key elements of insurance finances, including equity, insurance premiums, reserves, investment resources and costs, and also identified specific areas of influence of digital solutions on the skin of these components. It is proven that insurance reserves play a fundamental role in ensuring financial stability, and the use of algorithmic forecasting and Big Data technologies allows to increase the accuracy of their formation. The role of financial innovations, in particular InsurTech, Blockchain, artificial intelligence and smart contracts, as development drivers that ensure transparency, automation and personalization of services is characterized. The practical value of the article lies in the possibility of using the proposed systematization of threats and tools for their neutralization to strengthen the financial security of insurance companies. The formulated conclusions and generalized data on the implementation of innovative tools can be used by insurer management to optimize business processes, increase the efficiency of asset management and strengthen competitive positions in the digital environment. The results of the study create a basis for developing new strategies for the development of the insurance business in the context of the global digital transformation of the financial market.