THE ECONOMIC AND SOCIAL ESSENCE OF RISK TRANSFER AND RISK TRANSFORMATION IN INSURANCE ACTIVITIES

Abstract

Annotation . This study examines the economic and social essence of risk transfer and risk transformation in insurance activities. It highlights the role of insurance as an effective mechanism for managing risks, ensuring financial stability, and protecting individuals and businesses from potential losses. The paper analyzes the processes of risk transfer and risk transformation, their significance for economic development, social welfare, and the sustainability of the insurance system. The study also emphasizes the contribution of these mechanisms to reducing uncertainty and enhancing social protection.