OPERATIONS OF THE INSURANCE SECTOR IN THE REPUBLIC OF SERBIA IN THE CIRCUMSTANCES OF COVID-19 PANDEMIC

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 eff ects of the pandemic on the profi ts of insurance companies and insurance premiums, where the impact of changes in travel health insurance premiums on the realized profi ts of insurance companies is particularly analysed since the premiums of travel health insurance are most aff ected by the health crisis. The impact of the pandemic on the insurance sector was explored by a comparative analysis of insurance premiums and profi t before and after the pandemic.

The analysis of the impact variation of the travel health insurance premium on the realized profi t of insurance companies was performed by applying a panel data regression analysis. The obtained results show that the pandemic has not signifi cantly aff ected the insurance sector in the Republic of Serbia, whereas the impact of changes in travel health insurance premiums on the profi t of insurance companies in the Republic of Serbia is also not signifi cant.

Keywords: insurance companies, pandemic, COVID-19, insurance market, travel health insurance, health crisis