DIGITALIZATION OF THE SOCIAL INSURANCE SYSTEM AS A DRIVER OF ENHANCING SOCIAL PROTECTION EFFICIENCY

Abstract

This study examines the theoretical foundations and empirical dimensions of digitalizing the social insurance system as a critical catalyst for enhancing social protection efficiency within the contemporary digital economy. The research demonstrates that modernizing social insurance extends beyond deploying information and communication technologies to encompass the structural transformation of organizational, administrative, and data governance mechanisms. Analyzing Ukraine’s digital social insurance architecture, the author evaluates pivotal infrastructural components, including the State Register of Compulsory State Social Insurance, the Electronic Register of Certificates of Temporary Disability, and institutional platforms of the Pension Fund, State Employment Service, National Health Service, and State Tax Service. These digital assets automate routine administrative workflows, consolidate decentralized information repositories, and expand public access to social welfare services. However, systemic friction persists: the paper identifies critical digital transformation barriers, notably limited system interoperability, escalating cybersecurity vulnerabilities, persistent digital divides, constrained fiscal budgets, and fragmented regulatory frameworks. To overcome these constraints, the study delineates strategic modernization priorities, emphasizing the maturation of the Unified Information System of the Social Sphere, the integration of big data analytics and artificial intelligence, secure biometric identification, proactive service delivery models, and comprehensive digital inclusion initiatives. Ultimately, operationalizing this integrated digital framework optimizes welfare administration, safeguards fiscal transparency, elevates service delivery standards, and cultivates an adaptive, citizen-centric social protection ecosystem.