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A Methodical Approach to Determining the Full Cost Insurance Protection of the Enterprise with Business Risks Coverage
Mushnykova S. A., Bozhanova O. V., Аbernikhin I. O.

Mushnykova, Svitlana A., Bozhanova, Olena V., and Аbernikhin, Illia O. (2024) “A Methodical Approach to Determining the Full Cost Insurance Protection of the Enterprise with Business Risks Coverage.” Business Inform 7:434–442.
https://doi.org/10.32983/2222-4459-2024-7-434-442

Section: Finance, Money Circulation and Credit

UDC 368.013

Abstract:
The aim of the article is to study the ways of formation of insurance protection of enterprises and to de-velop a methodical approach to determining insurance costs depending on the chosen way of formation of insurance protection of enterprise against entrepreneurial risks. It is emphasized that the methods for determining the mentioned insurance costs will differ. The main ways of formation of insurance protec-tion (creation of own protection funds, appeal to an insurance company, use of comprehensive insurance) are allocated. It is noted that the organization of the enterprise’s own protection funds (self-insurance) is a process in which the enterprise creates internal reserves to cover potential losses instead of purchasing an insurance policy from a third-party insurance company. A methodical approach to determining the insurance costs for self-insurance and determining the optimal insurance coverage has been proposed (through the formalization of the target function and the introduction of a number of restrictions on the choice of allowable insurance coverage), the size of the reserve fund and the amount of the annual contribution to the organization of the own insurance protection funds. It is substantiated that the determination of the full cost of insurance protection of enterprise includes the determination of both direct costs (insurance premiums paid for insurance policies) and indirect costs (various types of costs that are not directly related to the payment of insurance premiums, but are necessary to ensure the effec-tive functioning of the insurance system). A brief description of possible indirect costs in the organiza-tion of insurance protection of enterprise is provided. It is substantiated that the enterprise, in addition to self-insurance and insurance in order to form the enterprise’s own program of insurance protection, can use comprehensive insurance, which covers a wide range of risks and provides protection against various dangers. The generalized stages of development and implementation of combined models for the formation of the program of insurance protection of enterprise and optimization of costs for it have been proposed.

Keywords: business risks, combined models, the full cost of insurance coverage.

Fig.: 3. Tabl.: 1. Formulae: 10. Bibl.: 17.

Mushnykova Svitlana A. – Doctor of Sciences (Economics), Professor, Head of the Department, Department of Financial Management, Accounting Analytics and Business Monitoring, Institute of Industrial and Business Technologies of the Ukrainian State University of Science and Technology (4 Nauky Ave., Dnipro, 49600, Ukraine)
Email: [email protected]
Bozhanova Olena V. – Candidate of Sciences (Economics), Associate Professor, Dean, Faculty of Economics and Management, Institute of Industrial and Business Technologies of the Ukrainian State University of Science and Technology (4 Nauky Ave., Dnipro, 49600, Ukraine)
Email: [email protected]
Аbernikhin Illia O. – Student, Institute of Industrial and Business Technologies of the Ukrainian State University of Science and Technology (4 Nauky Ave., Dnipro, 49600, Ukraine)
Email: [email protected]

List of references in article

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Melko, V. I. “Implementatsiia mizhnarodnoho dosvidu derzhavnoho rehuliuvannia strakhuvannia ryzykiv budivelnoi diialnosti v Ukraini“ [The Implementation of the International Experience of Regulation of Contruction Risk Insurance in Ukraine]. Aspekty publichnoho upravlinnia, vol. 4, no. 11-12 (2017): 40-49. DOI: https://doi.org/10.15421/15201660
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Abernikhina, I., and Savchuk, L. Systema upravlinnia mainovymy ryzykamy pidpryiemstva yak skladova yoho ekonomichnoi bezpeky [The Property Risk Management System of the Enterprise as a Component of Its Economic Security]. Dnipropetrovsk: Porohy, 2009.
Savchuk, L. M., and Abernikhina, I. “Obgruntuvannia metodyky vyznachennia nepriamykh vytrat pry formuvanni mekhanizmu strakhovoho zakhystu pidpryiemstva vid mainovykh ryzykiv“ [Justification of the Method of Determining Indirect Costs in the Formation of the Mechanism of Insurance Protection of the Enterprise Against Property Risks]. Upravlinnia proektamy ta rozvytok vyrobnytstva, no. 3 (2006): 129-138.
Abernikhina, I. H. “Zastosuvannia modeli zmishanoho finansuvannia pry upravlinni mainovymy ryzykamy pidpryiemstva“ [Application of the Mixed Financing Model in the Management of Property Risks of the Enterprise]. Ekonomika: problemy teorii ta praktyky, vol. 4, no. 233 (2007): 1076-1084.
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Savchuk, L., and Abernikhina, I. “Pidkhody do vyznachennia osnovnykh pryntsypiv i parametriv formuvannia modelei znyzhennia vytrat, poviazanykh z mainovymy ryzykamy pidpryiemstva“ [Approaches to Determining the Main Principles and Parameters of the Formation of Cost Reduction Models Associated with Property Risks of the Enterprise]. Problemy ekonomiky transportu. 2011. http://nbuv.gov.ua/UJRN/znpdnuzt_pet_2011_1_22
Abernikhina, I. H. “Metodychne zabezpechennia systemy strakhovoho zakhystu vid pidpryiemnytskykh ryzykiv“ [Methodical Provision of the System of Insurance Protection Against Business Risks]. Upravlinnia proektamy ta rozvytok vyrobnytstva, no. 2 (2006): 128-133.

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