FOREIGN EXPERIENCE IN ORGANIZING COMPLIANCE RISK ACCOUNTING IN THE INSURANCE INDUSTRY: LESSONS FOR UKRAINE
Abstract
The purpose is to develop a scientifically grounded framework for adapting international practices in compliance risk accounting to Ukrainian insurance sector conditions, aligning with global standards while addressing local regulatory gaps and operational constraints. Relevance stems from escalating regulatory complexity worldwide, intensified supervisory scrutiny in post-crisis and post-conflict economies, and the need for Ukrainian insurers to enhance transparency, mitigate sanction vulnerabilities, and access international capital amid European integration. The research uses multi-stage methodology: comparative legal and institutional analysis of compliance models in mature jurisdictions, synthesis of regulatory evolution, case-based evaluation of risk accounting integration, and conceptual modeling of adaptation pathways tailored to national accounting standards, digital infrastructure, and human capital needs. Results include a comprehensive adaptation model with four pillars: centralized compliance incident repository with real-time data exchange; localized RegTech modules compatible with domestic ERP systems; revision of national accounting policies to recognize compliance expenditures as a distinct category with standardized criteria; continuous professional development for compliance specialists with competency-based certification and periodic refreshment. Practical value: actionable guidance for regulators, insurers, and associations to shift from fragmented, formality-driven compliance to proactive, risk-oriented paradigm, achieving substantial penalty reductions, stronger internal controls, improved stakeholder confidence, and positioning Ukrainian insurers as reliable cross-border partners, contributing to sustainable growth and international competitiveness.
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