Article title Transparency as the Principle of the State Policy on Supervision of Insurance Business
Authors
Name of magazine Legal journal «Law of Ukraine» (Ukrainian version)
Issue 5/2018
Сторінки [85-100]
DOI https://doi.org/10.33498/louu-2018-05-085
Annotation

The analysis of current Ukrainian laws underlying the implementation of the state policy in the domain of supervision over insurance business proves that this policy is inefficient due to the lack of overall understanding and entrench exercising state supervision over insurance business. The establishment of transparent procedures according to which the authorized body should function ensues from the need to enhance the efficiency of the system of state regulation of financial markets by making amendments to current laws with the aim of eliminating the duplication of licensing, control and supervision functions of the national regulators, simplifying and adding transparency to administrative decision-making in this area, improving the insurance business environment with enhancing the responsibility of entities operating on the insurance market at the same time. The purpose of the article is to formulate a comprehensive and science-based concept of the state supervision over insurance business in Ukraine which would be founded on the principle of transparency; this will ensure that consumers of insurance services can be realistically informed about the essence of governmental control and the impact of such control on the insurance market; the article also defines the main characteristics of the concept which should meet certain basic criteria (factors); clarifies the essence of the transparency principle in the context of implementation of the state policy relating to supervision over insurance business and the concerns arising when it is not used; outlines the ways of resolving the said issues; lays out the stages of the work to be made with the aim of formulating a comprehensive, science-based concept of the state supervision over insurance business which would be founded on the principle of transparency; analyzes the current situation with legal regulatory framework for the state regulation of insurance business and with the entrenchment, at the regulatory level, of the provisions protecting the rights of consumers of insurance services. The author comes to the conclusion that so far, transparency as a principle of the state policy in the domain of supervision over insurance business has no appropriate position within the legal framework and also no well-established understanding of its essence. If these issues are properly resolved, favorable conditions will be created for enhancement of sustainable development of Ukraine’s insurance market as a type of non-bank financial service markets which can ensure the inflow of necessary financial resources to the real sector of economy and meet the needs of consumers for high-quality insurance services, and which will become the basis for formulating of a comprehensive and science-based concept of the state supervision over insurance business in Ukraine.

 

Keywords transparency principle; state policy; supervision over insurance
References

List of legal documents 
 

Legislation 
1. Hospodarskyi kodeks Ukrainy [The Economic Code of Ukraine]: Zakon Ukrainy [the Law of Ukraine] vid 16 sichnia 2003 r. № 436-IV. Vidomosti Verkhovnoi Rady Ukrainy. 2003. № 18-22. St. 144 (in Ukrainian). 
2. Pro finansovi posluhy ta derzhavne rehuliuvannia rynkiv finansovykh posluh [On Financial Services and the State Regulation of Financial Service Markets]: Zakon Ukrainy [the Law of Ukraine] vid 12 lypnia 2001 r. № 2664-III. Vidomosti Verkhovnoi Rady Ukrainy. 2002. № 1. St. 1 (in Ukrainian). 
3. Pro skhvalennia Kontseptsii rozvytku strakhovoho rynku Ukrainy do 2010 roku [On approval of the Concept for the development of the insurance market of Ukraine until 2010:]: rozporiadzhennia Kabinetu Ministriv Ukrainy [the Order of the Cabinet of Ministers of Ukraine] vid 23 serpnia 2005 r. № 369-r. URL: http://zakon.rada.gov.ua/ laws/show/369-2005-%D1%80 (accessed: 03.05.2018) (in Ukrainian). 
4. Pro skhvalennia Kontseptsii zakhystu prav spozhyvachiv nebankivskykh finansovykh posluh v Ukraini [On Approval of the Concept of Protection of the Rights of Consumers of Non-Bank Financial Services in Ukraine]: rozporiadzhennia Kabinetu Ministriv Ukrainy [Order of the Cabinet of Ministers of Ukraine] vid 3 veresnia 2009 r. № 1026-r. URL: http://zakon.rada.gov.ua/laws/show/1026-2009-%D1%80 (accessed: 03.05.2018) (in Ukrainian). 
5. Pro strakhuvannia [On Insurance]: proekt Zakonu Ukrainy [the Draft Law of Ukraine] vid 6 liutoho 2015 r. № 1797-1 URL: http://http://w1.c1.rada.gov.ua/pls/zweb2/ webproc4_1?pf3511=53904 (accessed: 03.05.2018) (in Ukrainian). 
6. Pro strakhuvannia [On Insurance]: Zakon Ukrainy [the Law of Ukraine] vid 7 bereznia 1996 r. № 85/96-VR. URL: http://zakon.rada.gov.ua/laws/show/85/96- %D0%B2%D1%80 (accessed: 03.05.2018) (in Ukrainian). 
7. Pro Stratehiiu staloho rozvytku Ukrainy – 2020 [On the Strategy of Sustainable Development of Ukraine – 2020]: Ukaz Prezydenta Ukrainy [Decree of the President of Ukraine] 12 sichnia 2015 r. № 5/2015. URL: http://zakon.rada.gov.ua/laws/show/5/2015 (accessed: 03.05.2018) (in Ukrainian). 
8. Pro zatverdzhennia Kontseptsii zaprovadzhennia prudentsiinoho nahliadu za nebankivskymy finansovymy ustanovamy ta Prohramy rozvytku systemy prudentsiinoho nahliadu za nebankivskymy finansovymy ustanovamy [On Approval of the Concept for the Implementation of Prudential Supervision for Non-Bank Financial Institutions and the Program for the Development of the Prudential Supervision System for Non-Bank Financial Institutions]: rozporiadzhennia Derzhavnoi komisii z rehuliuvannia rynkiv finansovykh posluh Ukrainy [Approved by the State Commission for Regulation of Financial Services Markets of Ukraine] vid 15 lypnia 2010 r. № 585. URL: http://www. uaib.com.ua/files/articles/1301/85_4.pdf (accessed: 03.05.2018) (in Ukrainian). 
9. Stratehiia reformuvannia derzhavnoho rehuliuvannia rynkiv nebankivskykh finansovykh posluh na 2015-2020 roky [The Strategy for Reforming the State Regulation of Non- Bank Financial Service Markets for Years 2015-2020]: rozporiadzhennia Natsionalnoi komisii, shcho zdiisniuie derzhavne rehuliuvannia u sferi rynkiv finansovykh posluh [Order of the National Commission Responsible for the State Regulation in the Domain of Financial Service Markets] vid 19 bereznia 2015 r. № 499. URL: http://nfp.gov.ua/ files/Stratehiia_final_1.doc (accessed: 03.05.2018) (in Ukrainian). 
10. Uhoda pro asotsiatsiiu mizh Ukrainoiu, z odniiei storony, ta Yevropeiskym Soiuzom, Yevropeiskym Spivtovarystvom z atomnoi enerhii i yikhnimy derzhavamy-chlenamy, z inshoi storony. URL: http://zakon.rada.gov.ua/laws/show/984_011 (accessed: 03.05.2018) (in Ukrainian).

Bibliography 
 

Authored books 
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Jornal articles 
12. Andriichuk T, ‘Prozorist yak pryntsyp derzhavnoi komunikatyvnoi polityky’ [‘Transparency as a Principle of the State Communication Policy’] (2010) 2 Politychnyi menedzhment 73 <http://nbuv.gov.ua/UJRN/PoMe_2010_2_9> accessed 3 May 2018 (in Ukrainian).

13. Pylaieva V, ‘Naukovi pidkhody shchodo vyznachennia pryntsypu transparentnosti v diialnosti orhaniv vykonavchoi vlady u vitchyznianii nautsi administratyvnoho prava’ [‘Scientific Approaches for Defining the Transparency Principle in the Operation of Executive Authorities in the National Science of Administrative Law’] ch 2 (2016) 2 Pravo i suspilstvo 131 (in Ukrainian). 
 

Thesis abstracts

14. Pylaieva V, ‘Administratyvno-pravovi zasady zabezpechennia transparentnosti v diialnosti orhaniv vykonavchoi vlady v Ukraini’ [‘Administrative Law Framework for Ensuring Transparency of Operation of Executive Authorities in Ukraine’] (dys kand yuryd nauk, Kharkivskyi natsionalnyi universytet im V N Karazina 2017) (in Ukrainian).