Analysis of the Business of the Insurance Sector in the Countries of Central and Eastern Europe in the Conditions of the Crisis
Analysis of the Business of the Insurance Sector in the Countries of Central and Eastern Europe in the Conditions of the Crisis

Summary/Abstract: This paper presents the key indicators of the insurance sector business in the countries of Central and Eastern Europe in the conditions of the global economic crisis, in the period 2007-2012. The authors of this paper work on the assumption that the insurance sector affects the development of the economic and financial system of selected countries in the region of central and eastern Europe (eight countries were analyzed: Serbia, Croatia, Montenegro, Bosnia and Herzegovina, Macedonia, Romania, Bulgaria and Albania). With the start of the crisis, the analyzed countries managed to maintain stable growth (or stagnation) of premiums. A higher growth rate was recorded in the life insurance segment. However, unlike developed markets, non-life insurance dominated the portfolio structure, about fifteen times the penetration rate was recorded, as a result of the low level of GDP per capita. According to the criterion of the insurance density, the insurance market in the analyzed countries is lagging behind the developed financial systems, recording several tens of times lower insur ance density. Bearing in mind the mentioned facts, we can conclude that the analyzed countries have significant potential for the development of the insurance sector in the future.

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