Rethinking the Functional Capacity of Social Insurance as an Instrument of Social Justice in the Face of Unpredictability

The socio-economic development of the country, according to the international institutions’ recommendations, is the ability of society to effectively meet the current needs of the population, which are changing under the influence of globalization, digitalization, and the transition to a green economy, taking into account human-centered and inclusive management approaches. However, the reality of the Ukraine’s development scenario in the context of the war and its consequences requires not only determination in actions and resources but also integrity, increased awareness of responsibility for the formation of a society with new participants, where the “people of war” take the lead. The purpose of this article is to reveal the content of the social insurance system, taking into account the need to rethink its functional capacity and significance in ensuring the sustainability of society. The study employed such methods as scientific generalizations, system analysis, and structural and logical synthesis. On the basis of the processed scientific material, as well as the analysis of current challenges, the paper substantiates the author's position on the importance of social insurance in protecting employment income and the variability of life, which is based on the occurrence of social risks. The scientific views on the functioning of the mechanism of protection against social risks and their dynamics under the influence of new challenges are studied and structured in order to highlight key aspects. Based on the analysis of social challenges, the author substantiates the need to detail the functions of social insurance, which are based on the support of income from employment throughout life. Accordingly, it is proved that, given the challenges of today, the main elements of the functional significance of social insurance are income support, poverty reduction, reduction of sensitivity to social vulnerability, promotion of economic mobility and rapid response, intergenerational economic support, investment in human capital, promotion of inclusiveness, adaptation and social integration. The analysis demonstrates that a meaningful social insurance system, taking into account the principles of functioning, is able to respond to modern challenges. At the same time, it is noted that the realization of functions depends on changes in the labor market, education market, health care system, as well as on political views and integrity policy. The author emphasizes that social insurance is an integral part of both social security and economic reforms. The author argues that the capacity of the social insurance system is ensured by economic stability, which in turn depends on the efficiency of social insurance. It is proved that social insurance is not only a mechanism of protection against social risks, as is commonly believed, but also an institution of the social protection system, the main task of which is to support protection in order to prevent inequality, thereby ensuring equal opportunities for the quality realization of social rights throughout life with an individual focus on development and sustainability, as well as a steadily growing legacy for future generations.