Научно-методический журнал спецвыпуск №1 2021

Conclusions
The most effective method of state regulation to 
stimulate the development of the insurance system is the 
optimal taxation of its subjects. Given the development 
of the insurance system of Ukraine, the procedure of 
taxation of its subjects should contribute to its formation 
and reliable functioning. The presence of insurance 
companies on a special tax regime did not significantly 
affect the development of the insurance system of Ukraine. 
For the domestic insurance system, it would be effective 
to rejection the special regime of taxation of insurance 
activities and introduce a mixed taxation system, which 
would help to improve its development and get rid 
of the negative image of the use of shadow insurance 
transactions. The development of the insurance system 
in the future will be facilitated by an effective system of 
income taxation of insurance companies introduced by the 
Tax Code of Ukraine, tax reform, and a scientifically sound 
approach to further improving tax legislation and effective 
state regulation of the insurance system.
References
1. On personal income tax : Law of Ukraine of 22.05.2003, 
№ 889-IV // Verkhovna Rada of Ukraine. — Retrieved from: 
http://zakon1.rada.gov.ua/laws/show/889-15. — Date of 
access: 10.10.2020.
2. On approval of requirements for ratings of financial 
reliability (stability) of non-resident insurers and 
reinsurers : Resolution of 15.10.2013, № 1640 // Cabinet 
Ukraine, began to decline sharply by 2010 inclusive, 
having decreased to the level of almost 2007 with a 
mark of UAH 500.8 million. After this period, the largest 
growth was shown in 2013 (UAH 966.7 million), 2016 (UAH 
1,078.5 million), and 2019 (UAH 1,213.6 million), as we see, 
with a frequency of three years. Intermediate periods of 
recession can be explained by both economic and political 
factors (GDP, income of insurance companies, changes to 
the Tax Code of Ukraine, the war in eastern Ukraine, the 
annexation of Crimea, in which some insurers remained, 
for which Ukraine has no reporting, etc.).
We can say that there is no relationship between the 
number of insurance companies and their level of solvency. 
Graphic data show that Ukraine’s insurance system is 
showing high incomes and is becoming more concentrated 
due to competitive insurance companies. Their number 
decreases every year, but this does not affect the quality of 
the insurance system, but rather clears it of small insolvent 
insurers who do not have the opportunity to survive in the 
market in conditions of increased competition.
From July 1, 2020, the National Bank took over the 
functions of the regulator of the insurance market. 
According to the NBU’s expectations, after the acute phase 
of the economic crisis and the beginning of the resumption 
of economic activity after the situation with Covid-19, the 
Ukrainian insurance system will grow. The main problem of 
the insurance system is the failure of a significant number 
of insurance companies to meet the requirements for 
solvency. These requirements were introduced by the 
National Commission for State Regulation of Financial 
Services Markets, but have been fully operational since 
June 30, 2020. If we assess the situation in the insurance 
system, 57 insurers did not fully meet the requirements for 
solvency and capital adequacy due to low-quality assets. 
Besides, a significant share of the assets of individual 
insurance companies is currently illiquid real estate, the 
value of which may be overstated. Therefore, insurers