Kapacitet međunarodnog sektora osiguranja i reosiguranja: implikacije katastrofalnih šteta
Global Insurance and Reinsurance Industry Capacity: The Effects of Catastrophe Losses

Summary/Abstract: Capital as the difference between assets and liabilities of insurance companies enables protection against negative deviations of actual damages, costs or investment results from the planned values and it is the capacity, that is the key limiting factor for the supply of insurance services on a local as well as global level. Catastrophe losses represent special issue in the management of insurance and reinsurance companies because of their remarkable impact on available capital and capacity limitation. With the more frequent manifestation of catastrophic losses that have more intense effects the problem of limited insurability of risks and the insufficiency of not only individual companis but of the aggregate capacity of the global insurance and reinsurance industry is intensified. The main conclusion of the conducted research is that insurance and reinsurance in contemporary conditions are no longer sufficient to cover the consequences of catastrophic losses because of the limited capacity for risk acceptance. There is a need to use alternative solutions, which include mechanisms of risk control and mechanisms of risk financing that encompass risk transfer to investors in global capital markets and government intervention, that is the use of public funds and various forms of public-private partnerships, including the participation of international institutions.

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