ANALYSIS OF INSURANCE INDUSTRY CARMEL INDICATORS IN REPUBLIC OF SERBIA

Although the insurance industry in the Republic of Serbia has recorded a growth trend in the last few years (when it comes to standard parameters like total premium, technical and guarantee provisions, balance amount, capital), considerable theoretical and practical attention has been devoted to the problems of insurance companies’ financial stability analysis based on quantitative data. In the light of its strategic commitment to become an integral part of the European Union, Serbia already now has to improve the performance of the insurance sector so as to be competitive in this branch in the coming years. With this in mind, in this paper, we analyse the 2017 financial stability of insurance companies operations in the Republic of Serbia using CARMEL financial indicators developed based on the methodology of the International Monetary Fund and following the recommendation of the National Bank of Serbia. CARMEL indicators are here recognized as an effective tool for insurance risks management, revealing the set of financial indicators with a negative trend in order to amend them with corrective measures in the coming period.

Key words: CARMEL indicators, insurance sector, capital adequacy, earnings, profitability, liquidity