Managing cash flows of an insurance company under martial law

Abstract

In conditions of martial law, the role of effective cash flow management of insurance companies is increasing as an important prerequisite for ensuring their liquidity, solvency and financial stability. War risks, instability of the financial environment and increasing uncertainty regarding future insurance payments require improving approaches to managing insurers' financial resources. The purpose of the article is to study the theoretical and practical aspects of cash flow management of insurance companies under martial law, determine the impact of liquidity and solvency on the effectiveness of managing financial resources of insurers, and substantiate areas for improving the cash flow management system. Methods. The study used methods of theoretical generalization and systematization, analysis and synthesis, statistical and comparative analysis, as well as a graphical method to study the features of the formation and use of cash flows of insurance companies. Results. The essence and features of the formation of incoming and outgoing cash flows of insurers were studied. The dynamics of the main indicators of the insurance market of Ukraine in 2022–2025 were analyzed, in particular, insurance premiums, payments, reserves, assets and the number of insurance companies. It was established that the growth of insurance reserves, the share of highly liquid assets and the volume of insurance premiums has a positive effect on the stability of cash flows and the ability of insurers to fulfill their obligations. The feasibility of implementing a risk-oriented approach to financial resource management, improving the cash flow forecasting system, optimizing the structure of insurance reserves and assets, diversifying the investment portfolio, and digitizing financial processes is substantiated. Conclusions. It has been proven that effective cash flow management is an important prerequisite for ensuring the financial stability of insurance companies in martial law. A direct relationship has been established between the liquidity, solvency and the effectiveness of cash flow management of insurers. The implementation of the proposed measures will contribute to strengthening the financial security of insurance companies and increasing their adaptability to modern challenges.