HARMONIZATION OF LEGAL REGULATION OF THE UKRAINIAN INSURANCE MARKET WITH EU STANDARDS

Abstract

The article examines the development of the Ukrainian insurance market within the framework of European integration and the implementation of European Union directives as a mechanism for modernizing the national financial system. The strategic development trajectory chosen in 2013 necessitated a comprehensive reform of the legal regulation of the insurance sector, aimed at harmonizing national legislation with European standards and ensuring effective corporate governance and internal control. The Law of Ukraine “On Insurance” dated November 18, 2021, No. 2751-IX, introduced insurance classes, updated requirements for licensing, solvency, risk management, and corporate governance of insurance entities, thereby establishing the legal foundation for the implementation of a transparent supervisory system  The evolution of the unified European insurance market is systematized through five generations of EU directives. The first generation codified the principle of freedom of establishment and the classification of insurance products; the second regulated the freedom to provide services within the EU; the third harmonized national supervisory standards and qualification requirements for shareholders and executives; the fourth enhanced prudential supervision, financial reporting, reinsurance mechanisms, and liquidation procedures; and the fifth ensured transparency, market integration, and international coordination through the establishment of the European Insurance and Occupational Pensions Authority. Pursuing a European development trajectory for Ukraine requires a comprehensive evaluation of the alignment of national legislation with EU directives, the jurisprudence of the European Court of Human Rights, and the international standards of the International Association of Insurance Supervisors (IAIS). This alignment is crucial for Ukraine’s integration into the global financial system and for enhancing the competitiveness of the national insurance market.