IMPACT OF AUTOMOTIVE INDUSTRY DEVELOPMENT ON MOTOR VEHICLE INSURANCE MARKET (PART II)

In general terms vehicles, especially passenger cars, had a powerful effect on change in social, family and personal life of people worldwide. Motor vehicle is no longer considered a luxury as it was in the past. Nowadays, motor vehicle is required to meet everyday needs of a modern man. The age of cars is not over yet. It keeps progressing and growing in terms of technical and technological development of automotive industry and constant increase in number of cars, thus having a positive effect on motor insurance development and other insurance lines dealing with motor vehicles.
This paper analyses the development of automotive industry in Serbia and worldwide, depending on demand trends which are influenced by many factors. Most important factors are achieved level of motorization, demographic trends and standard of living measured by gross domestic product per capita and purchasing power of citizens. Past dynamic development of automotive industry and data and projections of basic assumptions that define the demand trends indicate that it is realistic to expect growing demand and increase in number of motor vehicles, which would favour further development of automotive industry and motor insurance, as well as other nonlife insurance lines dealing with motor vehicles worldwide, in Serbia and the region.
Having considered the development of automotive industry and number of vehicles, it can be concluded that the significance of motor insurance is on the increase worldwide. Apart from cars, many other things related to motor vehicles may become subject matter of insurance, such as Motor Third Party Liability Insurance, which is compulsory insurance worldwide. The scope of motor insurance is the greatest when compared to other nonlife insurance lines, which is particularly noticeable in some countries worldwide, in Serbia and the region. For the purpose of further development of this insurance segment, due to the significant scope and numerous similarities and some differences in practice of motor insurance, this paper analyses some of the main indicators of business results in countries formed after the dissolution of Yugoslavia.