The Implications of the Financial Crisis to the Insurance Industry – Global and Regional Perspective

Abstract

ABSTRACT

COVID-19 and Insurance market returns in emerging and developed markets: A comparative study based on Wavelet methods

“…The one with prominent size contains several arrows [ indicating that COV19 is leading insurance returns with significant out-phase coherence in the short-run (4-8) during mid-April to mid-May for the developed markets. The negative response of insurance returns to COVID-19 shock in developed markets is similar to the findings of other studies reporting a high financial contagion and significant insurance returns decline in response to the crisis events; like the terrorist attacks of 9/11 and the global financial crisis of 2007-08 (Baluch et al, 2011;Cummins & Weiss, 2009;Marović et al, 2010;Ramiah et al, 2010). However, our results do not support the idea of a low correlation of insurance stock returns with the market portfolio after a financial crisis, as reported by Thomann (2013).…”

“…In a nutshell, the impact of COVID-19 on insurance returns is more severe but short-lived for emerging markets. The findings are in line with Marović et al (2010), suggesting the negative impact of financial disaster on the insurance industry. Moreover, emerging markets have comparatively limited resources to deal with the severe impact of the pandemic and therefore are expected to suffer the worst.…”

Analysis of the efficiency of insurance companies in Serbia using the fuzzy AHP and TOPSIS methods

“…The impact of the economic crisis on the insurance industry was less prominent than it was on the banking industry. However, the financial crisis and subsequent recession imposed substantial changes to the institutional and business landscape in which insurance industry operates (Marović, Njegomir, & Maksimović, 2010). Management has an important role in successfully managing an insurance company and has responsibility for the preparation and objective presentation of financial statements so that various interest groups could make appropriate economic decisions.…”

“…The obligations of the insurance company to the insured persons are mainly related to unearned premiums and paid claims. The importance of investment results is specially emphasised in the case of life insurers who provide unitlinked policies, life insurance products associated with investments into funds, as the key incentive for buyers of such products is profit making (Marović, Njegomir, & Maksimović, 2010). The investments represent the core of efficiency.…”

The limitations of competition in the insurance markets of Slovenia, Croatia and Serbia

“…For more than two decades these countries' markets have belonged to a single market, therefore it is interesting to analyse the development of competition in them from 2004, 15 years after their separation. The study is particularly interesting because today's economy is in the global economic crisis, which affects the business conditions in the sector, and requires a more comprehensive approach to the management of risk and insurance companies' capital (Marović, Njegomir, & Maksimović, 2010).…”