DEVELOPING A RATING SYSTEM FOR INSURANCE COMPANIES BASED ON FINANCIAL INDICATORS

Eldor Nozimov

Authors

Eldor Nozimov Samarkand Institute of Economics and Service Senior Lecturer, Department of "Investment and Innovations"

Keywords:

Insurance company rating, financial indicators, solvency, liquidity, profitability, asset quality, scoring model, multi-criteria analysis, risk assessment, financial stability.

Abstract

This article explores the development of a rating system for insurance companies using financial performance indicators. The study analyzes key financial metrics such as solvency, liquidity, profitability, and asset quality to construct a comprehensive and reliable evaluation framework. Emphasis is placed on applying quantitative methods, including scoring models, weighted indicators, and multi-criteria decision-making techniques. The research also reviews international rating practices to identify best approaches that can be adapted to the Uzbek insurance market. The findings aim to provide a transparent, objective, and practical tool for regulators, investors, and policyholders to assess the financial strength and stability of insurance companies.

References

Brealey, R. A., Myers, S. C., & Allen, F. (2020). Principles of corporate finance (13th ed.). McGraw-Hill Education.

Cummins, J. D., & Weiss, M. A. (2014). Systemic risk and the insurance sector. Journal of Risk and Insurance, 81(3), 489–528. https://doi.org/10.1111/jori.12036

Harrington, S. E., & Niehaus, G. (2003). Risk management and insurance (2nd ed.). McGraw-Hill.

Rakhimov, A., & Zaynutdinov, S. (2021). Financial performance evaluation of insurance companies in emerging markets. Central Asian Economic Review, 18(2), 45–60.

AM Best. (2022). Rating methodology for insurance companies. AM Best Publications.

Xu, L., & Tan, K. S. (2019). Data-driven approaches to financial performance analysis in insurance companies. Journal of Financial Risk Management, 11(4), 205–223.

Zaynutdinov, S., & Rakhimov, A. (2020). Development of rating systems for insurers in Central Asia. Insurance Studies Journal, 16(3), 33–51.

World Bank. (2021). Insurance market development and risk assessment frameworks. World Bank Report.

International Association of Insurance Supervisors (IAIS). (2022). Insurance core principles: Standards, guidance, and assessment methodology. IAIS Publications.

Brealey, R. A., Myers, S. C., & Marcus, A. J. (2017). Fundamentals of corporate finance (8th ed.). McGraw-Hill Education.