Principles of social insurance and their importance in the social protection system

Social and economic stability in a country’s development results from the effective functioning of its governmental institutions. Since gaining independence, Ukrainian development pace has fluctuated cyclically under the influence of both internal and external factors. The current challenges posed by the war and its consequences have undermined the achievements in poverty reduction, slowed down progress toward development goals, and necessitated a review of the stages of ‘pre-war’ social reforms. The article is aimed to substantiate the need to modernize the principles underlying the social insurance system and to highlight their importance in safeguarding employment income against social risks, particularly in the context of inclusiveness and uncertainty. The study employes methods such as scientific generalizations, comparisons, structural and logical synthesis, and system analysis. Its relevance lies in identifying trends in social insurance reform driven by changes in economic development and growing social challenges in the country. The author’s perspective on the content of the concept of ‘social insurance’ underscores its political significance as a component of the social protection system, guaranteeing social security against life’s uncertainties. An analysis of the dynamics of social insurance system reform since independence, taking into account international institutions recommendations, emphasizes the state’s role as a guarantor of protection of social rights. The author confirms that the social insurance system should protect those who have directly contributed to the formation of their own protection. This protection, in turn, is sustained through mobility and continuity of relations between generations, ensuring the system’s ability to fulfill its obligations. It is emphasized that to achieve this, the principles governing the system’s functioning must ensure the effectiveness of its mechanism, the quality of its social insurance programs, and its integration with other institutions. The author highlights the need to supplement these principles in response to new challenges, which have driven changes in employment and protection policies. The analysis of these principles aims to substantiate their feasibility and significance in a period of uncertainty. This study has broadened the understanding of social insurance as a scientific issue, emphasizing the responsibility of institutions and participants of the system in ensuring social security during uncertain times.