Sokić, dr Miro
Miro Sokić was born in 1972 in Knin, Republic of Croatia. He completed
primary school and secondary school of economics in Knin, and then he enrolled at
the Medical Faculty of the University of Belgrade as a full-time student. After
successfully completing three years of medical studies, in 1994, he enrolled at the
Faculty of Economics, University of Belgrade. He graduated and earned his
master's degree at the Faculty of Economics with the thesis End of Transition and
Opportunities for a Successful Socio-Economic Development in the Countries of
Central and Eastern Europe. In 2014, having defended his doctoral dissertation
entitled Solvency Risk Management in an Insurance Company, he was awarded a
PhD by Singidunum University. In foreign and domestic scientific journals, he has
published 11 scientific papers in the field of insurance risk management and
transition in Central and Eastern European countries. He has also published several
papers in domestic professional journals in the field of the European Union's
development perspective and Serbia's chances for EU accession. As a visiting
professor, he gave lectures on the subject of insurance industry in undergraduate
and master studies at the Faculty of Economics, University of Belgrade, Belgrade
Banking Academy, and the Faculty of Business Economics, Educons University in
Novi Sad. He is a reviewer of the Serbian scientific journals of national importance:
Business Economics and Military Technical Courier. He is in the process of election
to the scientific rank of research associate at the Institute of Economic Sciences in
Belgrade. He is employed in Dunav Insurance Company as a senior solvency risk
management. He is an alumnus of the Belgrade Fund for Political Excellence. He
speaks English.
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
INSURANCE COMPANY RISK MANAGEMENT SYSTEM IMPROVEMENT
In modern business environment, insurance companies are an important
factor of financial market development of overall economic and industrial progress
of the country. If we assume that the key determination of every insurance
company is to increase the competitiveness of its insurance services, increase its
market share and profit realization, the question is how to most efficiently achieve
these, often conflicting, objectives.
In addition to the traditional approach to increasing insurance portfolio
and, consequently, the total insurance assets, a basic requirement of better
positioning of insurance companies in the market is proper management of all
risks which the Insurer is facing in his business, not only those assumed from the
Insured. That is why the subject of this paper is a set of risks that affect the activities
of Insurers. These are primarily insurance risks, liquidity risks, counterparty default risks, market, operational, legal and other significant risks. Application of the VaR
model for measuring market risk is the most common and is yet to demonstrate its
effectiveness with other risks in future.
Key words: risk, risk types, risk management, VaR model, Solvency II, insurance
premium
INSURANCE COMPANIES AS INSTITUTIONAL INVESTORS IN THE REPUBLIC OF SERBIA
Insurance companies, through their function of a fi nancial
intermediary, namely, through the role of institutional investors, have one of
the most signifi cant impacts on the economic growth. In pursuing their core
activity, insurers collect considerable premium assets. The source of collected
funds also dictates the maturity of investment. Since the liabilities arising
from property insurance are less predictable, the assets collected from this
insurance line are mostly invested as short-term investments. The situation is
quite opposite when it comes to life premiums were the investments have a
long-term nature. The share of life premium in the total premium of insurance
sector of the Republic of Serbia is increasing year-over-year, both in nominal
and percentage terms and, inclusive of 31 December 2014, it amounted to
respective 16.01 billion Dinars or 23%, compared to 6% of the total premium
some ten years ago. In the developed EU countries, the share of life insurance
in the total premium is about 60%. Consequently, the growth of life insurance
premium is expected to continue in the next period, which will generate a
realistic basis for a higher demand for fi nancial instruments. In the years to
come, this will affi rm insurance companies as powerful institutional investors
and potentially one of the major drivers of fi nancial market development and
economic recovery in Serbia.
Key words: insurance companies, non-life insurance, life insurance, institutional
investors, fi nancial instruments, fi nancial market development, feedback system,
country’s economic recovery
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