EVALUATION OF THE EFFECTIVENESS OF ACCOUNTS RECEIVABLE MANAGEMENT IN INGO ARMENIA INSURANCE CJSC

Abstract

The correct policy of managing accounts receivable has a decisive impact on the financial stability of insurance companies. However, very often, the managers of insurance companies do not pay sufficient attention to this fact. This article discusses the importance of evaluating the effectiveness of accounts receivable management in insurance companies. The aim of the article is to assess the effectiveness of accounts receivable management using the example of an insurance company and to promote the application of modern and effective methods of managing accounts receivable in insurance companies.

To achieve this goal, the author analyzed the data of one of the leading insurance companies operating in Armenia: INGO ARMENIA INSURANCE CJSC. Based on this data, the main indicators characterizing the intensity of the company’s accounts receivable were calculated. Then, using comparative, correlation, and stepwise regression analysis methods, the impact of the accounts receivable management system on the company’s return on assets (ROA) was assessed.

The study revealed the shortcomings in the accounts receivable management process and identified the factors that have the greatest influence on the effectiveness of receivables management. Additionally, suggestions were made to improve the management effectiveness.                                                         

The approaches developed by the author based on the analysis can serve as a guide for applying more effective methods of accounts receivable management and improving the performance of insurance companies.