The model of innovative strategy for the insurance company investment activity

  • Dmitry Zherlitsyn Donetsk National University
  • Vladimir Lev Donetsk National University
Keywords: innovative strategy, company investment activity, model of the innovation strategy, investment risk, modern trends

Abstract

Purpose and subject of researchThe specifics of investing activity of insurance companies inUkraineare investigated. The innovative model of strategic management for insurance company investing activity is proposed.Research methodologyA theoretical framework is based on methods of system analysis in management of the insurance company development, innovative control methods in enterprise financial management, modern methods of economic cybernetics.Value resultsThe proposed theoretical approach is used to improve the management system of financial services enterprise through the introduction of innovative methods of financial investments control. The present study provides a starting-point for further research and development of practical skills of innovative control methods for the insurance company.ConclusionsThe result of the study is the author's model of the innovation strategy for the insurance company investment activity. The model considers the investment risk, modern trends in the financial markets and the insurance market inUkraine. The proposed approach allows increasing the efficiency and competitiveness of the insurance company activity.Key words: innovative strategy, company investment activity, model of the innovation strategy, investment risk, modern trends.

Author Biographies

Dmitry Zherlitsyn, Donetsk National University
candidate of economic sciences, associate professor, Institute of Economic Cybernetics, Donetsk National University(Donetsk, Ukraine)
Vladimir Lev, Donetsk National University
postgraduate, Institute of Economic Cybernetics, Donetsk National University(Donetsk, Ukraine)

References

On Insurance. Law of Ukraine N 85/96-VR dated on 03.07.96 (amended on 05.16.13). [Home of Verkhovna Rada of Ukraine], [Online]. Available: http://zakon4.rada.gov.ua/laws/show/85/96-вр

Zherlitsyn, D. M., 2012. Innovative Management of the Enterprise Financial System. Ukraine, Donetsk: "Yugo-Vostok", LLC. 256 p.

Stoyanova, E. S., 1996. Financial management. 2nd ed. Moscow: Perspective press. 405 p.

Bocharov, V. V., 2009. Financial Analysis. A short course. 2nd ed. St. Petersburg. Peter press. 240 p.

Standard N 4 for Supervision of Asset Management by Insurance Companies. Forinsurer.com – Journal of Insurance. [Online]. Available: http://forinsurer.com/public/04/04/16/1071

Statistics of Ukraine's Insurance Market. Forinsurer.com – Journal of Insurance. [Online]. Available: http://forinsurer.com/stat/

Trott, Paul., 2005. Innovation Management And New Product Development. Prentice Hall Internat., 540 p.

Schumpeter, J. A., 1934. The Theory of Economic Development: An Inquiry Into Profits, Capital, Credit, Interest, and the Business Cycle. Cambridge, Mass.: Harvard University Press. 225 p.

Delong, L., 2005. Optimal Investment Strategy for a Non-Life Insurance Company: Quadratic Loss. Applicationes Mathematicae, 32 (2005), pp. 263-277.

Rudolph, M.J., 2001. U.S. Insurance Company Investment Strategies in an Economic Downturn. U.S.A.: Rudolph Financial Consulting, LLC. 77 p.

Sharpe, W. F., Alexander, G. J., Bailey, J. V., 1999. Investments. Prentice-Hall Internat. 962 p.

Joehnk, M. D., Gitman, L. J., Smart, S. J., 2010. Fundamentals of Investing. Prentice Hall PTR. 672 p.

Section
Models of Management and Marketing