MANAGEMENT OF INSURANCE RISKS IN THE SOCIAL INSURANCE SYSTEM OF UKRAINE

Abstract

Introduction. The social insurance system of Ukraine functions under conditions of socio-economic instability, demographic changes, changes in the structure of the labor market, fiscal problems, as well as increasing pressure upon the financial mechanisms of the country that provide for the payments for social insurance for the country’s citizens. The management of insurance risks within the social insurance system of Ukraine is, therefore, particularly important within ensuring the stability, balance and flexibility of that social insurance system. The management of these insurance risks is that which makes it possible to recognize the factors that may lead to the disturbance of the financial stability of the social insurance system, the negative impact that such factors may have upon the system’s ability to fulfill its social obligations, and the quality of social insurance provided to the citizens of Ukraine. Each of these factors, therefore, indicate the need to clarify the nature of insurance risks within the social insurance system of Ukraine, to classify those insurance risks, and to determine approaches to the minimization of those identified risks under the conditions existing within the country today.

The purpose of the study is to substantiate the theoretical and applied foundations of management of risks in the system of social insurance of Ukraine, to specify the content of risks, their types and directions of improving the management of these risks in the field of social insurance.

Materials and methods. The research materials include legislation and regulations governing the functioning of the social insurance system in Ukraine; scientific works of domestic and foreign scientists on the problems of insurance, social security, financial stability of the insurance system and risk management; approaches to risk analysis within the social insurance system. In the course of this research work, the following methods were used: to study the economic essence of risks in the social insurance system – the method of theoretical generalization and systematization; to study cause-and-effect relationships between risk factors and system functioning parameters – the method of analysis and synthesis; for grouping risk factors – classification method; to study the place of risk management in the social insurance system – the method of structural and functional analysis; for the formation of scientific and practical proposals – the method of logical generalization.

Results. The article reveals the economic content of insurance risks in the social insurance system of Ukraine – the probable events and processes that may lead to disturbances in the financial balance of this system and its ability to ensure the social protection of the population. It has been demonstrated that the risks of social insurance systems are complex in nature and emerge as a result of the influence of a wide range of factors on the functioning of these systems. The article systematizes the types of risks that may emerge in the social insurance system of Ukraine. The impact of the quality of management and monitoring of the social insurance system on the system’s ability to effectively manage insurance risks has been identified. The results indicate that the improvement of risk management in social insurance systems requires the implementation of a systemic approach to resolving these problems. The article proposes the need to manage insurance risks in the social insurance system of Ukraine as a continuous process of identifying, assessing, controlling and minimizing these risks in order to improve the sustainability of social insurance and the effectiveness of social protection of the population of Ukraine.

Discussion. Further scientific research should also be focused on the development of methodological tools for the quantitative assessment of insurance risks within the social insurance system of Ukraine, the development of models for forecasting the impact of identified insurance risks on the financial condition of insurance funds, as well as the development of mechanisms for the digital monitoring and improvement of the system of managing insurance risks in the field of social insurance.