Safe Bank

Financial system stability (financial stability) is crucial for the proper functioning of modern economies. Among the many institutions that influence this stability are insurers. Traditionally, they play a stabilizing role in economies, because their primary role is to diversify risk. In addition, the literature indicates numerous other functions of insurance and insurance companies in the economy. However, they can also contribute to generating systemic risk, especially when they engage in non-insurance activities. The aim of the article is therefore to determine the role of insurance and insurance companies for the proper functioning of the financial system and the real economy. For this purpose, a review of the results of empirical studies published in the scientific literature was conducted. An analysis was also made of the guidelines and recommendations of global, European and national supervisory institutions and institutions dealing with crisis management, concerning increasing security on the insurance market. The analysis leads to the conclusion that the impact of insurers on systemic risk is increasing, primarily due to their growing role and interconnections, both with each other and with other financial market entities. The majority of the literature on the subject indicates that a potential source of systemic risk from insurers is their non-insurance activities (investments, transactions related to securities and derivatives). However, the growing probability of negative consequences of insurer bankruptcy requires appropriate mechanisms to manage such a situation.

The aim of this article is to present the issues of defining liquidity risk and its subtypes, as well as to lay out an original approach to a comprehensive demonstration of the liquidity risk in the operations of an insurance company. A systematic arrangement of risks was presented, which can be a helpful tool in identical liquidity risk management processes in individual entities. Based on the presented analysis of the companies' practical approaches to risk management, several conclusions can be drawn. Firstly, there is a different approach to the taxonomy of liquidity risk, which can be created through the interpretation of legal norms and guidelines of supervisory authorities, and the practice of insurance companies presented in annual solvency and financial condition reports. Moreover, within insurance companies themselves there are different approaches to the problem of liquidity risk. In most cases, it does not go beyond noting the risk in an internal risk map and defining it in a way that is close to regulatory standards. The presented analyses should be continued in the future with research on methods for measuring and assessing liquidity risk in insurance companies.

The article concerns the scope of liability of the Polish guarantee body – the Insurance Guarantee Fund. The Polish statutory regulation of the scope of UFG's liability does not raise any doubts when it comes to compulsory third-party liability insurance for motor vehicle owners, compulsory third-party liability insurance for farmers, compulsory insurance of buildings on farms and life insurance. However, it is difficult to clearly interpret the scope of UFG's guarantee liability concerning other compulsory insurance – concerning third-party liability resulting from the performance of business or professional activity. The author puts forward the thesis that UFG is liable in the event of bankruptcy of an insurance company only in relation to compulsory insurance in the strict sense and only to the extent in which insurance protection for a given entity is required by law.

This study addresses the issue of overdue receivables from the secondary market. The main objective of the research is to evaluate the aplication of the Fast K-Prototypes algorithm to the overdue insurance receivables segmentation, considering how selected parameters and data quality influences obtained results. The article also addresses the repayment of receivables from the insurance sector and the assessment of the risks they generate. The research sample includes 2376 recourse claims which arose from motor insurance and have been acquired between 2012 - 2023 by a polish debt collection company.

The application of the Fast K-Prototypes method enabled the segmentation of overdue receivables into various credit risk groups, provided that specific parameters were applied, and the input data was of high quality thanks to preliminary analysis and appropriate preparation. The analysis confirms that these assets are associated with a significant level of credit risk. The results indicate that the application of the Fast K-Prototypes method supports the debt recovery process optimization. However, the effectiveness of this method depends on the research sample and suggests the importance of further research in the context of diverse data samples.

The purpose of this article is to argue and discuss the reasons and the context of Eurovita 2023 enforcement and final expected dissolution, the pros and cons of the solution scheme designed and implemented, potential alternatives in similar situations and – finally and, as usual, most important – which lessons can be learned from the whole story. The interests and the approach of the analysis are essentially in economic, financial and business terms. The deep cause of the crisis was the combination of financial turmoil - fast and sudden increase in interest rates in a situation of unbalanced ALM - plus the governance of Eurovita. The solution found has been ad hoc, overall fit to the situation, tailor made, even creative. The Italian taxpayer – at last – has not been hit at all by the solution found and this was not to be taken for granted.