Sokić, dr Miro

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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.



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

UDK:658.821: 629.4.062:368.021.1+ 368.8: 368.025.6: 368.032.1+368.025.1:006.88


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

UDK: 368.032.1:336.714.658.114.8:368.30+336.76+347.731.2(497.11)


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