e-ISSN 2518-1181
DOI 10.33146/2518-1181
Online Media ID R40-06293
← Back Published: 30.03.2026

Transformation of Financial Rehabilitation, Bankruptcy, and Insurers’ Market Exit under Conditions of Systemic Turbulence: European and Ukrainian Dimensions

Authors

Olga Kneysler West Ukrainian National University, Ternopil, Ukraine ORCID 0000-0001-9898-7031
Nataliіa Spasiv West Ukrainian National University, Ternopil, Ukraine ORCID 0000-0003-0797-7220
Oleksandr Kvasovskyi West Ukrainian National University, Ternopil, Ukraine ORCID 0000-0001-9856-3917
Olga Nipialidi West Ukrainian National University, Ternopil, Ukraine ORCID 0000-0002-9962-2939

DOI:

https://doi.org/10.33146/2518-1181-2026-1(111)-105-122

Abstract

Insurance companies perform not only a commercial, but also an extremely important socio-economic mission, ensuring the redistribution of risks, financial protection of the population and business entities, and the stability of the financial system. Therefore, the insolvency or termination of insurers’ activities has significantly greater negative consequences than the bankruptcy of most other business entities. The objectives of the study are: to identify pan-European and domestic trends in the development of the insurance markets of the EU and Ukraine with the identification of key determinants that determine the corresponding dynamics; to study the legislative features of financial rehabilitation, bankruptcy and termination of Ukrainian insurers as legal entities under martial law; to reveal problematic issues in the implementation of relevant procedures and outline ways to resolve them. The article provides a comparative analysis of the development of the insurance markets of Ukraine, individual EU countries, and the European Union as a whole, and also critically assesses national and European approaches to the settlement of insurer insolvency. The methodological basis of the study comprises methods of analysis and synthesis, the structural-functional approach, and methods of statistical analysis. As a result of the study, researchers identified key trends in the development of mechanisms for insurers’ financial recovery, systemic problems in the functioning of the national model for regulating the insolvency of insurance companies, and directions for its further improvement, taking into account European experience. The results of the study indicate that increasing the efficiency of procedures for rehabilitation, bankruptcy, and exit of insurers from the market requires strengthening the institutional capacity of regulators, improving the system of early response to financial risks, expanding prudential supervision instruments, and implementing modern mechanisms of regulatory influence aimed at ensuring the stability and sustainable development of the insurance sector. The implementation of the measures proposed in the article will contribute to the formation of a sustainable insurance market ecosystem in Ukraine, capable of self-recovery in the face of long-term exogenous risks and threats, strengthening consumer confidence in insurance institutions and ensuring reliable insurance protection for citizens and business entities.

Keywords

financial rehabilitation, bankruptcy, insurance companies, insurance market, insurer insolvency, financial stability, state regulation, prudential supervision
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