PERFORMANCES OF INSURANCE MARKET IN MONTENEGRO IN CONDITIONS OF FINANCIAL CRISIS
Insurance market of Southeast European countries is characterized by significant changes due to uneven economic growth and development. At markets of developed countries, life insurance premium has the leading position in total insurance premium. Due to insufficient economic development of Monteneg...
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| Format: | Article |
| Language: | English |
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Faculty of Economics, University of Tuzla
2011-05-01
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| Series: | Economic Review |
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| Online Access: | https://www.er.ef.untz.ba/index.php/er/article/view/193 |
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| author | Miljana Novićević Vladimir Kašćelan Julija Cerović |
| author_facet | Miljana Novićević Vladimir Kašćelan Julija Cerović |
| author_sort | Miljana Novićević |
| collection | DOAJ |
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Insurance market of Southeast European countries is characterized by significant changes due to uneven economic growth and
development. At markets of developed countries, life insurance premium has the leading position in total insurance premium. Due to
insufficient economic development of Montenegro, and inadequate awareness and distrust of citizens, compulsory insurances make the
biggest part in the total portfolio of the insurance market in Montenegro. The insurance industry was not fully exposed to crisis and drastic changes have not been expected within this type of industry. The global financial crisis did not have a direct negative
impact on the insurance market in Montenegro, but rather the indirect one that may be identified through the decline in purchasing
power of citizens, decrease in the lending activity of the banks, and through possible recession. Since the financial markets both in
Montenegro and in the region are not sufficiently developed, the insurance companies were not able to invest funds in sophisticated
securities and financial derivatives, while the Law on Insurance, on the other hand, limited the companies to invest available monetary
assets in risky securities, such as stocks. Insurance development trends primarily depend on economic growth, while strict rules
and other regulations dominantly affect the improvement and development of insurance market in every country. Therefore, the control
of business of insurance companies, licensed brokers and insurance agents, directing insurance companies to invest free funds into
nonrisky forms of property and adequate promotion of insurance activities can provide reduction in negative impacts of economic
events, i.e. affect insurance companies so that they realize the best possible business results in this and later period.
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| format | Article |
| id | doaj-art-729d533e5dcf477ab2e051ac2be63b3b |
| institution | Kabale University |
| issn | 1512-8962 2303-680X |
| language | English |
| publishDate | 2011-05-01 |
| publisher | Faculty of Economics, University of Tuzla |
| record_format | Article |
| series | Economic Review |
| spelling | doaj-art-729d533e5dcf477ab2e051ac2be63b3b2025-02-11T00:33:28ZengFaculty of Economics, University of TuzlaEconomic Review1512-89622303-680X2011-05-0191PERFORMANCES OF INSURANCE MARKET IN MONTENEGRO IN CONDITIONS OF FINANCIAL CRISISMiljana Novićević0Vladimir Kašćelan1Julija Cerović2University of Montenegro, Faculty of EconomicsUniversity of Montenegro, Faculty of EconomicsUniversity of Montenegro, Faculty of Economics Insurance market of Southeast European countries is characterized by significant changes due to uneven economic growth and development. At markets of developed countries, life insurance premium has the leading position in total insurance premium. Due to insufficient economic development of Montenegro, and inadequate awareness and distrust of citizens, compulsory insurances make the biggest part in the total portfolio of the insurance market in Montenegro. The insurance industry was not fully exposed to crisis and drastic changes have not been expected within this type of industry. The global financial crisis did not have a direct negative impact on the insurance market in Montenegro, but rather the indirect one that may be identified through the decline in purchasing power of citizens, decrease in the lending activity of the banks, and through possible recession. Since the financial markets both in Montenegro and in the region are not sufficiently developed, the insurance companies were not able to invest funds in sophisticated securities and financial derivatives, while the Law on Insurance, on the other hand, limited the companies to invest available monetary assets in risky securities, such as stocks. Insurance development trends primarily depend on economic growth, while strict rules and other regulations dominantly affect the improvement and development of insurance market in every country. Therefore, the control of business of insurance companies, licensed brokers and insurance agents, directing insurance companies to invest free funds into nonrisky forms of property and adequate promotion of insurance activities can provide reduction in negative impacts of economic events, i.e. affect insurance companies so that they realize the best possible business results in this and later period. https://www.er.ef.untz.ba/index.php/er/article/view/193financial crisisfinancial instrumentsinsuarance marketinsuarance business problemspremium |
| spellingShingle | Miljana Novićević Vladimir Kašćelan Julija Cerović PERFORMANCES OF INSURANCE MARKET IN MONTENEGRO IN CONDITIONS OF FINANCIAL CRISIS Economic Review financial crisis financial instruments insuarance market insuarance business problems premium |
| title | PERFORMANCES OF INSURANCE MARKET IN MONTENEGRO IN CONDITIONS OF FINANCIAL CRISIS |
| title_full | PERFORMANCES OF INSURANCE MARKET IN MONTENEGRO IN CONDITIONS OF FINANCIAL CRISIS |
| title_fullStr | PERFORMANCES OF INSURANCE MARKET IN MONTENEGRO IN CONDITIONS OF FINANCIAL CRISIS |
| title_full_unstemmed | PERFORMANCES OF INSURANCE MARKET IN MONTENEGRO IN CONDITIONS OF FINANCIAL CRISIS |
| title_short | PERFORMANCES OF INSURANCE MARKET IN MONTENEGRO IN CONDITIONS OF FINANCIAL CRISIS |
| title_sort | performances of insurance market in montenegro in conditions of financial crisis |
| topic | financial crisis financial instruments insuarance market insuarance business problems premium |
| url | https://www.er.ef.untz.ba/index.php/er/article/view/193 |
| work_keys_str_mv | AT miljananovicevic performancesofinsurancemarketinmontenegroinconditionsoffinancialcrisis AT vladimirkascelan performancesofinsurancemarketinmontenegroinconditionsoffinancialcrisis AT julijacerovic performancesofinsurancemarketinmontenegroinconditionsoffinancialcrisis |