Purpose and application peculiarities of management accounting in insurance companies

Abstract

Organization of a management accounting in insurance companies allows to perform operational and strategic management of insurance business based on elaboration of alternative approaches in ultimate goals achievement. Management accounting is directed at satisfaction of information needs of management in all insurance business areas, including actuarial and investment activity. Centralization of the management accounting system along with the development of single information standards at the level of a parent company leads to significant reduction of the business operations of subsidiaries in favor of sales and client service. Management accounting system of the insurance business may serve as a source of information in terms of financial risks, sales and value management only provided it is developed on multi-criterion principle and is based on modern information technologies.