Risk transfer solutions for the insurance industry

The paper focuses on the traditional and alternative mechanisms for insurance risk transfer that are available to global as well as to domestic insurance companies. The findings suggest that traditional insurance risk transfer solutions available to insurance industry nowadays will be predominant in the foreseeable future but the increasing role of alternative solutions is to be expected as the complementary rather than supplementary solution to traditional transfer. Additionally, findings suggest that it is reasonable to expect that future development of risk transfer solutions in Serbia will follow the path that has been passed by global insurance industry

DOES INSURANCE PROMOTE ECONOMIC GROWTH: THE EVIDENCE FROM EX-YUGOSLAVIA REGION

The aim of this paper is to examine the impact of insurance on economic growth and interaction of insurance and banking in promoting economic growth in ex-Yugoslavia region. We use the country-specific fixed effects models for panel data for the period 2004-2008 allowing each cross-sectional unit to have a different intercept term serving as an unobserved random variable that is potentially correlated with the observed regressors. The research results show that insurers provide positive effect on economic growth both as providers of insurance risk management and indemnification and as institutional investors. These results could be useful for regional governments that seek to improve economic growth as they suggest the need for implementation of stimulative policies for the development of insurance industry

ODREDNICE PRIVLAČNOSTI OSIGURAVATELJSKOG TRŽIŠTA ZA STRANA ULAGANJA: SLUČAJ BIVŠE JUGOSLAVIJE

The aim of this paper is to investigate factors that influence the attractiveness of insurance market for foreign insurers in case of ex-Yugoslavia region. We use country-specific fixed effects models for panel data that covers five countries during the period 2004-2008, allowing each cross-sectional unit to have a different intercept term serving as an unobserved random variable that is potentially correlated with the observed regressors. The research results indicate that the main forces affecting market attractiveness are insurance demand and human capital. These findings provide significant implications for local governments and for both, foreign and domestic insurers.Cilj ovog rada je ispitati utjecaj faktora na atraktivnost tržišta neživotnog osiguranja za strane osiguravače u slučaju regiona bivše Jugoslavije. Podaci obuhvataju pet zemalja regiona u periodu 2004-2008. godine. Koristimo metod grupisanih najmanjih kvadrata za panel podatke sa fiksnim efektima i time kontrolišemo potencijalni utjecaj skrivenih promenljivih sa posmatranim nezavisnim promenljivama u regresiji. Rezultati istraživanja ukazuju da ključni faktori koji utiču na atraktivnost tržišta uključuju tražnju za osiguranjem, tržišnu konkurentnost i ljudski kapital. Ovi rezultati pružaju korisne informacije lokalnim vladama kao i osiguravačima, kako domaćim tako i stranim

PREDUZETNIŠTVO U OSIGURANJU: ZNAČAJ I PRAVNI PRINCIPI DRUŠTVENO ODGOVORNOG POSLOVANJA OSIGURAVAČA

Entrepreneurship involves the exploitation of market opportunities that is based on ideas and innovation. The aim of entrepreneurship in insurance companies is to encourage innovation, the creation of new businesses, increase profitability while taking care to society. Corporate social responsibility means that insurance companies, following the premise of corporate entrepreneurship, in its business integrate the care of the environment in which they operate. The aim of the paper is to present the main features of social responsibility in insurance in the entrepreneurial context. In this paper we point to the definition of social responsibility in insurance, to the historical context and the importance of social responsibility as well as the latest law principles of social responsibility of insurance companies at the international level.Preduzetništvo podrazumeva iskorišćavanje tržišnih mogućnosti na osnovu ideja i inovacija. Cilj preduzetništva u osiguravajućim društvima jeste podsticanje inovacija, rađanje novih poslova, uvećanje proftabilnosti uz istovremenu brigu prema društvu. Društveno odgovorno poslovanje podrazumeva da osiguravajuća društva, sledeći premise korporativnog preduzetništva, u svoje poslovanje integrišu brigu o okruženju u kojem posluju. Cilj rada je da ukaže na osnovne karakteristike društvene odgovornosti u osiguranju u preduzetničkom kontekstu. U radu ukazujemo na određenje društvene odgovornosti u osiguranju, na istorijski kontekst i značaj društvene odgovornosti kao i najnovije pravne principe društvene odgovornosti osiguravajućih društava na međunarodnom nivou

Analysis of the life insurance market in the Republic of Macedonia

Life insurance in the Republic of Macedonia has a short history, if we do not count the experience of ZOIL Makedonija before the independence of Republic of Macedonia. The recent history of life insurance covers the last seven years and the segment of life insurance comprises about 6% of the total insurance market in the Republic of Macedonia. In this paper we analyse the development of life insurance in the Republic of Macedonia in recent history, taking the gross premiums of two of the best companies that are working in the segment of life insurance. Besides analysing the influence of the basic determinants of the development of life insurance (GDP, monetary stability, social insurance, etc.) we analyse the model of time series, with the purpose of making a model and forecasting future values of the series

Preduzetništvo u poljoprivredi, ekološka zaštita i osiguranje

Agricultural entrepreneurship is the basis of creativity, innovation, profitability and risk management of agricultural producers. Although the agricultural entrepreneurship is often ignored in Serbia, in the paper we emphasize its importance due to the fact that the contribution of agriculture still has the largest share in gross domestic product. Current 2016 was declared as the year of entrepreneurship in Serbia, which further stressed the importance of studying this problem. As the aim of the research we have determined the need for the study of agricultural entrepreneurship in the context of vulnerability to risks from the environment. In this regard, in the paper we first point to agricultural entrepreneurship and the importance of agriculture production in Serbia and then we point out to the environmental protection, as a form of preventive action for risk reduction, insurance, as a form of financing of insurance claims, and the characteristics of agriculture insurance in Serbia. The main conclusion is that environmental protection and agricultural insurance are complementary mechanisms of risk protection that provide significant support to agricultural entrepreneurship and the development of agricultural production.Preduzetništvo u poljoprivredi je u osnovi kreativnosti, inovativnosti, profitabilnosti i upravljanja rizicima poljoprivrednih proizvođača. Iako se preduzetništvo u poljoprivredi često zanemaruje u Srbiji, u radu naglašavamo njegov značaj s obzirom na činjenicu da je doprinos poljoprivrede još uvek najveći za bruto domaći proizvod. Tekuća 2016. godina proglašena je za godinom preduzetništva u Srbiji, što je dodatno naglasilo značaj izučavanja ove problematike. Za cilj rada smo odredili potrebu izučavanja preduzetništva u poljoprivredi u kontekstu ugroženosti rizicima iz okruženja. U tom smislu, u radu prvo ukazujemo na preduzetništvo u poljoprivredi i značaj poljoprivredne proizvodnje u Srbiji a potom ukazujemo na ekološku zaštitu, kao oblika preventivnog delovanja na redukciju rizika i osiguranje, kao oblika finansiranja posledica ostvarenja šteta i karakteristike osiguranja poljoprivrede u Srbiji. Osnovni zaključak je da ekološka zaštita i osiguranje poljoprivrede predstavljaju komplementarne mehanizme zaštite od rizika koji pružaju značajnu podršku preduzetništvu u poljoprivredi i razvoju poljoprivredne proizvodnje

Disruptive Technologies in the Operation of Insurance Industry

The aim of this paper is to present and discuss the opportunities and risks related to implementation of new digital disruptive technologies in the operation of insurance companies. We compare theoretical knowledge and empirical evidence of six alternative approaches of digitalization implementation in insurance companies. We review trends and analyse the application of information technologies in risk management, in sales and distribution, Insurtech, big data and predictive analytics, Internet of things (IoT), telematics devices and Blockchain technology in insurance. Regardless of the threats related to digitalization processes and increasing number of "attackers" in the insurance sector, insurance companies are slowly and gradually embracing new technologies, adapting their strategies, organizational structures, risk management, employees and culture in order to add value to their companies and to the customers

DEVELOPMENT AND COMPETITIVENESS ASPECTS OF INSURANCE MARKETS OF FORMER YUGOSLAVIA: THE EMPHASIS ON MONTENEGRIN INSURANCE MARKET

Insurance is a key form of risk financing that is in close interdependence with the economic development. The development of insurance that accompanied economic development and changes in the social system, in the countries of the region, had certain common characteristics because of the shared history but also there are differences in the economic development that have led to a different level of competitiveness and the overall development of the insurance market. The focus of this paper is the development of insurance in Montenegro, the analysis of the insurance market in the region of former Yugoslavia, a comparative analysis of the market situation and an analysis of the competitiveness of the insurance sector in the region

LIBERALISATION, MARKET CONCENTRATION AND PERFORMANCE IN THE NON-LIFE INSURANCE INDUSTRY OF EX-YUGOSLAVIA

The aim of this paper is to examine market structure, liberalisation and performance relationship for the non-life insurance industry in the ex-Yugoslavia region. We use the country-specific fixed effects models for panel data allowing each cross-sectional unit to have a different intercept term serving as an unobserved random variable that is potentially correlated with the observed regressors. Three models are presented, each placing market structure, liberalisation and profitability in distinct surroundings defined by related control variables. The research results indicate strong influence of market structure and liberalisation on market profitability

Effects of corporate diversification on firm performance: evidence from the Serbian insurance industry

The aim of this paper is to provide empirical evidence on the relation between line-of-business diversification and performance for the insurance companies that operated in the republic of Serbia in the period 2004–2014. The research results show that the relation between risk-adjusted returns measured both by return on assets and return on equity and line-of-business diversification and performance measured by entropy is significant and positive, which means that diversified insurers outperform undiversified insurers. These results could be useful in decision making for insurance companies as they suggest the need for diversification (specialisation), growth in size, capitalization and affiliation (grouping)