The social insurance in the system of the social risks regulation

This paper analyzes the social insurance in the context of its basic function - protection against social risks. The results of the study of the social insurance and social risk relationships help propose the definition of the social risk. We consider the social risk as the probability of financial distress due to the lack of earnings because of objective socially significant reasons and due to the additional costs of the children or other family members’ allowance, as well as to meet the needs of health and social services. In this case, the object of compulsory state social insurance relations is the coverage of social risk. The social risk is actualized under a system of interconnected relationships. Its participants are the insurance carrier, the insurer and the insured. The purpose of these mentioned relationships is to provide insurance protection of the economically active population in the event of the social-risk situation, its prevention and effects compensation. Insurance risk function is transformed into a fee insurer liability for the consequences of the risk caused by the events which are preappointed by current legislation. The basic principles of social insurance are: commitment, a clear dependence between participation in the financing system and the size of pensions and benefits, provision of payments, comparable with the income of the insured person during his / her working life, facilities isolation and participation of the social partners in the governance. It has been mentioned that in contradiction to Ukraine the general trend for the member states of the European Union is a striving for the social contributions optimization. Thus, based on projections over the next fifty years, they expect an increase by only 5% of GDP - in the corresponding estimates, they take into account the expected effects of reforms in the social security that have already been legislated and done (including new aid schemes and conditions of pensions), and the expected increase of labor share in total population and employment levels. The current social insurance system in Ukraine in its content is not insurance in the classic sense, as it stores and serves the social security (benefits) functions. It has a number of disadvantages and needs to be improved, in particular: to improve the mechanism of insured persons providing with benefits and social services, policies differentiated insurance rates improvement, economic stimulation of employers providing in the implementation of measures to prevent industrial risks. To reduce the load on the payroll fund it is necessary to expand the base of insurance premiums accounting, to improve the system of collecting and accounting of insurance premiums and gradually ensure parityamong employees and employers to pay insurance contributions for compulsory social state insurance.