INNOVATIVE METHODOLOGY IN FINANCIAL ANALYSIS OF INSURANCE ORGANIZATIONS

Insurance, as one of the main methods of distributing various risks that arise in an open market economy, is itself subject to certain risks. Its consistency, financial stability, as well as the sufficiency of financial results for the recovery of activities in the future are critical not only for insurance companies, but also for the regulatory body of financial bases and reinsurance subjects. It is important to ensure financial stability and confidence in financial markets, especially for countries with transition economies that have transformed from a closed economy to an open one. The article includes the analysis of the insurance organizations of Azerbaijan. Based on a systematic approach, analysis, synthesis, graphical and statistical methods, the main indicators of the insurance market and insurance organizations for the last time have been studied. The article examines the peculiarities of the formation and development of insurance relations in Azerbaijan, analyzes the stages of insurance development, assesses the impact of state decisions on the regulation of insurance organizations on their financial condition. The author has examined the dynamics of insurance premiums and insurance payouts in Azerbaijan over the past 11 years, the number of insurance organizations as the main participants in the insurance market, the number of concluded insurance contracts as the main indicator of the formation of insurance culture, and the prospects for the development of the insurance market. The main purpose of conducting financial analysis in the insurance sector is to maintain trust in the financial markets, assess the reliability of the insurer and comply with public interests. The second part of the article examines the peculiarities of this process, methods of analysis, financial indicators used in planning and analysis of the process. In the third part of the article, the main financial indicators of the life insurance companies operating in Azerbaijan for the last three years have been analyzed based on the financial statements, as well as financial indicators intended for use in the research process. Based on the analysis results, the recommendations have been given regarding directions for the development of the insurance market in Azerbaijan, improvement of financial reporting in insurance organizations, improvement of financial inclusion and strengthening of the stability of insurance companies’ activities.