Analysis of Risks in Liability Insurance and Methods of their Optimization

Research, whose title is “Analysis of Risks in Liability Insurance and Methods of their Optimization”, contains 3 figures, 10 tables and 3 applications. The volume of work is 80 pages.50 sources were used for writing of this research. Key words: liability insurance, risk, financial risk, methods of optimization, management of risk, efficiency.Every insurance company provides different insurance products and services during its insurance activity. Branch of liability insurance is relatively new on the insurance market. It can be noticed the fact of discrepancy of this branch with socio-economic structure of Russia. One of the factors, which influence on the further development of this branch, is possible risks. This branch of insurance is exposed to influence of these risks. That is why the problem of competent and effective management and of the elaboration of methods for risks minimization is actual these days.The purpose of this study is analysis of methods of risks optimization in the sphere of liability insurance on the example of MTPL-insurance. The efficiency of risk management and the optimization of these risks in liability insurance in chosen insurance company are object of the research. The subject of the study is methods of risks optimization in liability insurance on the example of concrete insurance company. Various sources were studied during the writing of this work. It was found that most of researches belong to domestic authors, because of absence of large development of liability insurance in Russia. The insufficiently known branch of risk management in insurance company is also one of the factors of presence of large number of domestic researches. It is connected with the cause that insurance company has another activity than ordinary companies. The scientific novelty is to propose of method of risk optimization and to analysis of this method on the concrete example of MTPL-insurance. Some corrections for calculations of insurance premium are also suggested in this kind of liability insurance.The practical significance of the study is that the main conclusions and recommendations, which are inherent in this work, can be used not only in a particular company, but also in other insurance companies, whose risk management in the field of liability insurance is insufficiently effective.The first chapter, which is called “Basic Concepts of Liability Insurance”, contains the essence and kinds of liability insurance, study of dynamics of the Russian insurance market, and the identifying of the share of liability insurance on this insurance market. In addition, the chapter also examines the definition of risk in insurance and presents the existing methods of risk management. The second chapter, which is called “Liability Insurance on Example Of Zurich Insurance Company”, contains the analysis of chosen insurance company, studying of the insurance portfolio of this company that is based on data for the period from 2011 to 2013. The activity of Zurich Insurance Company in the sphere of liability insurance is considered for more detailed study.The third chapter, which is called “Methods of Risk Optimization in Liability Insurance on Example of Zurich Insurance Company”, considers the suggested method of risk optimization. The example with MTPL-insurance was chosen for more detailed consideration of risk management and of the method of their minimization. The next information is provided in this chapter: foundation of this choice, consideration of basic principles of chosen kind of liability insurance. The liability insurance in this insurance company was estimated for risks detection before the analysis and using of optimization method the liability insurance. According to the results the liability insurance is subjected to influence of financial risk. The time period from 2012 to 2013 was considered for the research. The results show that the insurance company has effective risk management. It can be seen due to minimization risks in voluntary liability insurance reduced in 2013 compared with previous year. The highest probability of a loss, i.e. subjection to influence of financial risk, has the sphere of compulsory liability insurance. On the example of compulsory civil liability insurance the insurance premium was calculated in the selected time period. The factors that affect the final result of the insurance premium were examined. The method of risk minimization in this kind of liability insurance was considered with the using of function of the benefit and the usefulness for MTPL-insurance. The correction for calculation of insurance premium of this kind of liability insurance was made.The main outcomes and proposed recommendation based on the result of this analysis are presented in the conclusion of this research. It can be said that this method can be used not only in the chosen insurance company, but also for other members of insurance market. It should be mentioned that other kinds of liability insurance are subjected to influence of different kinds of risks. The different methods with using of statistical data for detection of regularity, with using of theory of probability and with using of different mathematical approaches can be applied for risks minimization.