Cash Flow Management System in Insurance Companies
DOI:
https://doi.org/10.31150/ajebm.v8i8.3890Keywords:
Insurance, Cash Flows, Finance, Funds, Financial Resources, Reserves, Credit, ObligationsAbstract
Rational management of cash flows leads to an increase in the level of financial stability of the insurance business, which is expressed in the following: Improving operational management from the point of view of balancing the inflow and outflow of funds; Increasing the volume of sales of insurance products and minimizing costs due to the operational management of the insurance organization's assets; Increase the profitability of debt capital and increase the liquidity of the insurer's balance sheet; Allocate financial resources to invest in more profitable financial instruments at lower costs to protect them; Improve negotiations with creditors; Create a basis for assessing the efficiency of the activities of financial responsibility centers (in analyzing cash flows by type of activity); Improving the management of insurance reserves and reducing interest on the insured's obligations.
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