THE IMPORTANCE OF STRENGTHENING FINANCIAL MONITORING AND CONTROL MECHANISMS IN THE INSURANCE SYSTEM

Abstract

The stability and transparency of the insurance sector largely depend on how effectively financial monitoring and control mechanisms are organized. In the context of increasing market liberalization, growing exposure to systemic risks, and rapid digitalization of financial services, improving monitoring instruments has become an essential strategic priority for ensuring insurers’ long-term solvency and public trust. The relevance of this topic is strengthened by the global trend of integrating risk-based supervision, enhancing solvency standards, and applying data-driven regulatory tools, which require national insurance markets to adapt their oversight structures accordingly.