The role of international standards in increasing the transparency of financial reporting and improving the financial risk management of insurance companies

Abstract

The introduction of IFRS 17 in Ukrainian insurance companies from 2023 has become an important stage in harmonizing financial reporting with global standards. The impact of the new standard has been ambiguous: on the one hand, transparency and comparability of financial indicators have increased, on the other hand, the methodology for assessing insurance liabilities has changed, which has caused fluctuations in capital and profitability. The key differences between IFRS 17 and Solvency II, as well as their impact on the financial stability of insurers, are discussed in the thesis. The main challenges faced by insurance companies are identified and possible ways of adapting to the new regulatory environment are suggested.