Stress-Testing Technologies of Financial Stability of Financial Corporations: Aspect of Insurance Companies

The purpose of the article is to perform stress-testing technologies of the financial stability of an insurance company based on the constructed mathematical model of the insurance company's activity, which would meet the established requirements (adequate reproduction of the main parameters of the insurance company's functioning; taking into account the stochastic nature of insurance processes; flexible management of model parameters describing company's behaviour; the ability to influence the intensity of flows; suitability for algorithmization and construction of computational simulation model. The relevance of this study is due to the need to address the problem of changes and complications, the growing variety of strategies and products implemented by insurance companies. There is a need for innovative methods to assess and monitor the vulnerability of these institutions to various types of risks. One of these methods, which is gaining widespread recognition both among regulators and financial corporations, is stress testing. It has been established that stress testing as a risk management tool is used both to assess the insurance company's readiness for a crisis situation, and to develop a plan of adequate measures to counteract and eliminate its negative impact. The development and application of the proposed mathematical and simulation model of stress testing of the financial stability of the insurance company allows to solve issues of ensuring sufficiency of capital level, control of financial stability and solvency, reliability of efficiency of activities, taking into account the probabilistic nature of insurance activities, various typical insurance risks and time horizons.