Abstract
This article examines the current state of mandatory automobile insurance in the Ukrainian market as a key mechanism for the social and financial protection of all road users, given that automobiles play a significant role in modern life and are not only an important financial asset but also a source of certain risks. Today, auto insurance is of great importance due to the rapid rise in prices for car repairs, replacement parts, and medical services. The purpose of this article is to examine the current state of mandatory auto insurance, identify problems, and propose ways to improve it. This study examines the scientific works of Ukrainian scholars who have examined the nature and fundamental principles of self-insurance and have substantiated the dissipative, non-equilibrium nature of its development. The authors propose a definition of the term “auto insurance” that fully captures its essence. This study analyzes compulsory auto insurance in Ukraine’s financial market, which indicates a decline in losses and an improvement in the financial performance of insurance companies. A quantitative assessment of auto insurance was conducted using international and domestic calculation methods, which indicates an increase in insurance risks. The main challenges facing the auto insurance industry have been identified, including issues related to legislation, the complex political situation in the country, and the public’s lack of trust in insurance companies. The report proposes ways to address the identified issues by strengthening oversight of the insurance market, implementing digital technologies, and enhancing the financial stability of insurance companies. The prospects for development have been identified; these are largely shaped by changes in legislation, gradual digitalization, and growing financial and insurance literacy among citizens, as further development is a crucial step toward meeting international standards.
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