THE POLISH EXPERIENCE IN IMPLEMENTING SOLVENCY II: FEATURES AND INSIGHTS FOR UKRAINE
Abstract
This article conducts an in-depth examination of the adoption and implementation of Solvency II standards in Poland since 2015, aiming to explore the potential application of these standards to harmonize operational practices among financial entities in Ukraine in the context of Eurointegration. The authors of this article highlight the positive influence of Poland's experience on regulatory practices, policyholder rights protection, and the overall competitiveness of insurers. The article's focal point is the meticulous analysis of the Solvency II implementation process in Poland, shedding light on intricate details of the supervisory framework, such as "supervisory visits" and stress testing. The significance of early warning systems as an integral component of the solvency assurance mechanism is duly emphasized. Furthermore, the article considers Ukraine's unique geopolitical and economic landscape, marked by the challenges of war and emigration. It is underscored that incorporating Polish best practices can expedite Ukraine's alignment with European standards and facilitate the integration of Ukrainian insurance companies into the international market. The article extends its scrutiny to the organization of supervisory mechanisms ensuring compliance with solvency standards in Ukraine, with a specific focus on the enhancement of Ukrainian legislation. The emphasis is on evolving requirements for insurers, licensing procedures, nuances of insurance contracts, and the incorporation of stress testing. The article culminates in offering practical recommendations for the seamless implementation of novel methods to monitor Ukrainian insurers' solvency. A vital aspect underscored in the article is the gradual implementation of these new requirements, a strategy deemed essential considering the intricacies of the domestic insurance market and the unique challenges posed by the ongoing state of war. This gradual approach is posited as a vital contributor to the domestic insurance system's balanced development and sustainable support.
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