INSTITUTIONAL SECTORS AND MARKETING MANAGEMENT EXAMPLIFIED BY INSURANCE COMPANIES

Institutional investors manage an increasingly larger portion of savings. Savings benefit from financial innovations which have considerably cut down costs of managing the invested funds while increasing the quality and variety of investments. Such „collecting” of individual savings has improved the efficient frontier of the returns-risk ratio and, on the other hand, has accomplished an economy of scale of transactions through size. In addition, depositors can expect a higher level of returns for the same level of risk.
Current efforts to promote business operations constitute an indispensible aspect of the transition process as they are aimed at the crystallization of a legal and regulatory framework, at gaining the trust of local and foreign investors and at the strengthening of financial markets.