THE ROLE OF VOLUNTARY INSURANCE IN THE SOCIAL SYSTEM OF UKRAINE

Abstract

The paper considers that social insurance in the state economy acts as a regulator for the redistribution of citizens' money and promotes economic development. It is social insurance that provides only the minimum needs of the population, which is why certain types of insurance take over the social functions of the state. The article outlines that the pandemic came with the final implementation of decentralization processes. It is stated that most insurance companies during the pandemic introduced new health insurance programs that provide financial support in case of COVID-19. The number of insurers is decreasing every year. The global pandemic has become a challenge for the Ukrainian economy. Most insurance companies have introduced new health insurance programs that provide financial support in the event of COVID-19. The rate of development of non-state social insurance is much lower than that of state social insurance, mainly for two reasons: 1. Different initial market conditions, as compulsory state social insurance is its significant advantage over voluntary insurance. 2. Low trust in insurance companies, which is quite understandable at the initial stage of development of private social insurance. Voluntary health insurance is promising for the development of socio-economic development of the state, as it not only contributes to the provision of quality medical care, but also finances the health care system and strengthens the material and technical base of medical institutions. Voluntary accident insurance as an insurance service has a positive effect on the development of the insurance market and aims to increase social protection of Ukrainian citizens, namely the provision of additional guarantees to consumers in case of unforeseen circumstances specified in the contract. The state must play an important role in maintaining the balance between state and non-state social insurance. The formation of a competitive environment in the private personal insurance market will increase the level of social security and increase the economic level. The paper substantiates that the active activity of insurance companies in the field of private insurance is quite useful and profitable for the state, as it helps to reduce expenditures to cover such needs of the population as disability due to illness or accident.