TRANSNATIONAL INSURANCE COMPANIES IN THE CONTEXT OF FINANCIAL AND ECONOMIC CRISES AND GLOBALIZATION: MECHANISMS OF RESILIENCE AND ADAPTATION

Abstract

The article examines the role of transnational insurance companies (TNICs) in overcoming financial and economic crises and in the context of the globalization of the world economy. The relevance of the study is determined by the increasing impact of global risks (financial and economic crises, pandemics, military conflicts, climate change, cyber threats) and the need to adapt the insurance market of Ukraine to operate under martial law and during post war reconstruction. The purpose of the study is to identify key mechanisms by which transnational insurance companies affect financial stability during global crises, to systematize current trends in the transnationalization of the insurance business, and to substantiate directions for adapting the insurance market of Ukraine to global standards. The article analyzes the economic essence of TNICs as specific actors of the global market that accumulate over 60% of world insurance premiums. Unlike traditional industrial corporations, TNICs perform the function of systemic stabilizers through cross border risk redistribution, reinsurance mechanisms and the investment of reserves in long term assets. It is found that during acute crises (2008-2009, 2020-2021), TNICs demonstrate higher resilience compared to national insurers due to portfolio diversification and access to intra corporate capital. A comparative analysis of the activities of leading TNICs (Allianz, AXA, Ping An Insurance, China Life Insurance, Zurich Insurance) for the period 2007-2024 is carried out. Based on simulated data on the market shares of major companies, approximated from the general trends reported by Swiss Re and the IAIS, the CR5 concentration index and the Herfindahl-Hirschman index (HHI) are calculated. The results indicate a gradual increase in global insurance market concentration: CR5 rose from 26.5% in 2007 to 40.0% in 2024, while HHI increased from 187 to 324 points, signalling a stronger role of the largest TNICs without reaching a highly concentrated market structure. Crisis periods are accompanied by a redistribution of the market in favour of major TNICs, which have the resources to absorb bankrupt competitors and invest in innovations. The mechanisms of TNICs’ participation in minimizing financial and economic risks are systematized, including reinsurance, securitization of insurance risks (catastrophe bonds), the use of captive insurance companies, portfolio diversification and hedging. The current system of international regulation of TNICs’ activities is characterized, in particular the Solvency II directive (EU), IAIS standards (including ComFrame for internationally active insurance groups), and the requirements for systemically important insurance organizations (G SII) introduced by the Financial Stability Board. The impact of digitalization and new technologies (InsurTech, blockchain, artificial intelligence, big data) on the development of transnational insurance business is identified. Directions for adapting the insurance market of Ukraine to global standards of TNICs’ activity under martial law and during post war reconstruction are substantiated. Key findings indicate that the insurance market of Ukraine lags significantly behind EU countries in terms of depth (premiums to GDP – around 1.7% vs. 3.3-6.4%) and density (premium per capita – about 48 euros vs. 255-1180 euros), which points to substantial growth potential. Priority areas for adaptation include: harmonization of legislation with Solvency II; stimulating the entry of TNICs through privatization and tax incentives; development of InsurTech and digital platforms; creation of a war risk insurance system with the participation of international partners (MIGA, DFC, EBRD); increasing the financial literacy of the population; and strengthening the protection of policyholders’ rights.