Adaptation of the national insurance system to global financial security challenges

Abstract

In today’s globalized business environment, national insurance systems are increasingly exposed to diverse challenges, ranging from geopolitical instability and economic crises to technological shifts and climate-related threats, which undermine national financial stability. This article aims to comprehensively study the impact of global challenges on the transformation of the risk landscape and identify effective adaptation mechanisms for strengthening the resilience of national insurance systems to external factors. The methodology of investigation is based on systemic, structural-functional, and comparative approaches. Results. A spectrum of global challenges has been identified that exert pressure on financial security and insurance systems. These include conflicts, cyber threats, macroeconomic turbulence, climate-related disasters, and regulatory instability. It has been determined that such challenges shape a new risk landscape that requires rethinking existing insurance protection approaches. The current state of the national insurance system has been analyzed, and structural vulnerabilities have been identified, including low insurance penetration in the economy, a fragmented regulatory and legal framework, limited digital transformation, and inadequate product adaptation to contemporary risks. These factors significantly weaken the system’s capacity to ensure financial security under destabilizing conditions. Adaptive approaches to transforming the national insurance system have been proposed to enhance its resilience to external shocks and strengthen its stabilizing function within the country’s financial system.Conclusions. The results can be used to develop strategic approaches for reforming the insurance sector to enhance national financial security. The practical significance of the findings lies in providing concrete strategic solutions that can be applied by public institutions, insurance companies, and regulatory bodies to enhance the effectiveness of insurance protection under conditions of instability. Prospects for further research include deepening the analysis of the proposed mechanisms’ effectiveness in specific national contexts and modeling the development of insurance markets in response to future global shocks.