Budgeting in the management and internal control system of an insurance company

Task. The article explores the issue of managing the budgeting process of insurance companies. At the same time, budgeting is presented as a business process that itself includes a control function and requires internal control. The purpose of the article is to develop a regulation of the process of budgeting the activities of insurance companies and, based on this, the allocation of centers of financial responsibility. Model. The article explores the schedule of the budget process in terms of preparing for the formation of the budget of the insurance company. The place of internal control in the management of the budgeting process. Summary. The organization’s Budgeting begins with its preparation and the main point is to take into account all the real capabilities of the insurance company, since with this vision of the state of affairs, the company will form an important financial document for the near future. Therefore, the implementation of internal control of this business process has matured and needs to be worked out. The issues of internal control of the business process of budgeting the activities of insurance companies have not been fully explored; they require a systematic approach and development of a methodology for its implementation. The lack of development of an internal control system for the budgeting business process in insurance companies, the lack of universal rules for this process for all insurers, the ICS methodology for this process does not allow the head office and local management to receive timely relevant information on deviations from the budget of branches, which reduces the level of management the budgeting process and the adoption of operational measures to reduce risks. Practical importance. The article substantiates the control of the budgeting process of insurance companies. Centers of financial responsibility for the formation of this process are presented, control ratios of indicators are defined, a reporting form is developed for the purposes of internal control of the business process budgeting. The submitted proposals can be taken as a basis for conducting internal control of budgeting activities of insurance companies. Originality. As a result of studying the business process, budgeting of the activities of the insurance company led to the logical conclusion of the internal control of this process. The specific positions of responsibility centers and indicators in the process of budget formation, a document on monitoring the compliance of budget indicators are proposed.

budgeting, internal control, insurance companies, process regulations, responsibility centers, business process, budget