Insurance as a financial risk management tool

Abstract

In conditions of a high level of uncertainty in the external environment, the ability of economic entities to withstand risks and threats becomes the key to their survival in the market. At the same time, unpredictable threats directly affect the sustainability of a business, requiring the search for ways and means to protect capital. That is why systemic risk management is of particular importance, where classical insurance is not just a way to compensate for damage, but is a complex financial instrument. The article identifies several key risk groups for which entrepreneurs use the insurance mechanism, including property risks, risks of liability to third parties, transport risks (cargo insurance and casco), financial and business risks, personnel risks, and specific modern risks. It is proposed to consider insurance as a key element and financial risk management tool integrated into the overall strategy of the company. The article analyzes the structure and dynamics of the insurance market of the Russian Federation for 2016–2025. It is concluded that the structure of insurance other than life insurance is dominated by such segments as car insurance, voluntary health insurance and CTP. At the same time, such a segment of the insurance market as property insurance of legal entities shows the best dynamics. An assessment of the prospects for the development of the insurance market in the near future is given. The article will be useful for specialists in the field of corporate finance, insurance, risk management, as well as researchers studying modern risk management models.