EUROPEAN EXPERIENCE OF STATE INSURANCE SYSTEM REGULATION AND POSSIBILITIES OF ITS APPLICATION IN UKRAINE

Abstract

The article considers the peculiarities of state regulation of the insurance system in the countries that are members of the European Union. Typical models of state regulation that have gained popularity in the world are analyzed. The development of the insurance system depends on the effectiveness of relations in the system "state - elements of the insurance system", the implementation of which by the state should be carried out through the mechanism of state regulation of the insurance system. The regulation of the global insurance system has two main objectives: to strengthen the supervision of insurance companies that are "systemically important" subjects in the insurance system and to develop international capital standards for active insurers. However, there are some obstacles for international regulators, as the insurance business model is less globalized than other areas of finance, and regulators have less insurance experience than, for example, banking, where international standards have been in place for a quarter of a century. However, after the global financial crisis, regulators are actively striving to make progress and improve the regulatory system of the insurance system. The main motives for the introduction of international regulation of the insurance system have been studied. State regulation of the insurance system in the EU is carried out at two levels: using mechanisms in national markets and uniform regulatory rules specific to the European Union. The world practice of state regulation of the insurance system has developed three main approaches: traditional regulation based on compliance with the rules, requirements, and norms of legislation; regulation based on the principles established by the authorities and regulation based on a risk-oriented approach. Recommendations for the NBU that he could practically apply in the regulation of the insurance system, taking into account Ukrainian legislation, are highlighted.