Article

Solvency requirements for insurers: Ukrainian practices and international experience

Olena Novosolova
Retrieved from Vol. 20, No. 2, 2025 Pages 28–36
Received
29.06.2025
Revised
23.11.2025
Accepted
24.12.2025
Published
26.12.2025
Views
241

Abstract

The relevance of the study was due to the transformation of approaches to regulating the solvency of insurers in the world's leading economies and the need to adapt the Ukrainian insurance supervision system to international standards. Countries with developed insurance markets use capital assessment models based on economic value, risk- oriented management and transparency of reporting. The aim of the study was to conduct a comparative analysis of solvency regulation systems for insurers in the European Union, Great Britain, the United States, Japan and Ukraine, as well as to identify the key elements and tools that ensure the financial stability of insurance companies. The study used methods of comparative analysis, logical generalisation, deduction, a systematic approach and regulatory interpretation. It examined the three-component structure of the Solvency II system, in particular the qualitative and quantitative capital requirements, risk management requirements and transparency of reporting. Innovations in the assessment of insurers' solvency in Ukraine were characterised: the phased implementation of Solvency II standards, new criteria for determining regulatory capital, Solvency Capital Requirement calculations and minimum capital. The updated system of solvency requirements in the United Kingdom, Solvency UK, which is a modification of Solvency II and aimed to simplify regulatory pressure and stimulate investment, was analysed. The essence of the risk-based approach in the United States and the role of capital calculation models taking into account the specific risks of each type of insurance were revealed. It was noted that the American regulatory model is more decentralised, as regulation is carried out at the state and federal government levels. Special attention was paid to the reform of the solvency system in Japan, where an economic valuation model based on economic value will be introduced in 2025. It is similar to the European model, but takes into account the national characteristics of the market. The practical value of the work lies in the formation of methodological principles for improving the Ukrainian insurance supervision system, taking into account international experience, which will contribute to increasing the transparency, stability and investment attractiveness of the domestic insurance market

Keywords

References

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Suggested citation

Novosolova, O. (2025). Solvency requirements for insurers: Ukrainian practices and international experience. University Economic Bulletin, 20(2), 28-36. https://doi.org/10.69587/ueb/2.2025.28