Analysis of the European experience of state regulation of the insurance system and its implementation in domestic practice

The paper analyzes the current situation and problematic aspects of the state regulation of the insurance system of Ukraine, and covers the main international approaches to building the state regulation of the insurance system, namely, traditional regulation based on legislative norms and requirements; regulation based on the principles determined by the state authorities; and risk-oriented regulation, which includes identification, assessment of risks, risk management and control of regulatory instruments. The work also analyzes the key areas of reforms of the insurance system of Ukraine, which were initiated by the National Bank of Ukraine as the only financial mega-regulator. The author shows that the state regulation and control of the insurance system, like in most European countries, is carried out on a risk-oriented approach. The implementation of the risk-based approach is based on the following principles: the principle of proportionality, the principle of a prospective view, the principle of early detection and timely reaction, the principle of professional judgment, and the principle of legal certainty. The National Bank's key task in the insurance sector is to create and maintain a solvent, financially sound, competitive, and stable insurance market. This should guarantee proper consumer protection and provide the economy and citizens with the necessary insurance services and products. The author determines that by reforming the system of regulation and supervision of the insurance system, the National Bank of Ukraine implements the key requirements of the European Union legislation, which Ukraine is obliged to fulfill under the Association Agreement, as well as the principles of the International Association of Insurance Supervisors (IAIS) to ensure stable and efficient operation of the insurance system.