Operations of the insurance sector in the Republic of Serbia in the circumstances of COVID-19 pandemic

Abstract

Every economic or health crisis forces insurance companies to take into account the sensitivity of their portfolios and adjust their business, notably in terms of proper risk management. This paper examines the effects of the pandemic on the profits of insurance companies and insurance premiums, where the impact of changes in travel health insurance premiums on the realized profits of insurance companies is particularly analysed since the premiums of travel health insurance are most affected by the health crisis. The impact of the pandemic on the insurance sector was explored by a comparative analysis of insurance premiums and profit before and after the pandemic. The analysis of the impact variation of the travel health insurance premium on the realized profit of insurance companies was performed by applying a panel data regression analysis. The obtained results show that the pandemic has not significantly affected the insurance sector in the Republic of Serbia, whereas the impact of changes in travel health insurance premiums on the profit of insurance companies in the Republic of Serbia is also not significant.