Serbia, KBF: Insurers and the state should pool forces in order to insure catastrophic risks

9 March 2022 — Daniela GHETU
A panel of discussions at the Kopaonik Business Forum, the most important event of its kind in Serbia and the region organized by the Serbian Association of Economists has analyzed the lessons learned from the pandemic crisis, as well as the possibility of insuring catastrophic risks, including the pandemic one.

Dragan Markovic, President of the Triglav Insurance EB, Bojan Mijailovic, President of the Sava Insurance EB, Sinisa Pratljacic, President of the Globos Insurance EB and Ivana Sokovic, President of the Danube Insurance EB participated in the panel.

Dejan Jevtic, President of the Executive Board of AMS Insurance, pointed out that the insurance sector has successfully overcome the most critical moments of the crisis caused by the pandemic, and that it is waiting for the continuation of premium growth.

Asked whether a pandemic could be insured, the president of the Executive Board of Dunav osiguranje, Ivana Sokovic, said that the answer would have been negative if we had discussed this topic a decade ago. "If we had talked 10 years ago about whether a pandemic could be insured, we would certainly say that it cannot." However, she said, as everything changes, so does the theory and practice of insurance. "What used to be considered as impossible to ensure - that one harmful event that affects a large number of risk units at the same time -, is different today," Sokovic pointed out. She reminded that in some traditional insurance products, there was no possibility of insuring wars, volcanoes, earthquakes, floods, and even pandemics.

Only with the cooperation of insurance companies and the state, an efficient model of insurance against catastrophic risks, including the pandemic, is possible concluded the panel. The capacities of individual insurers, even in the richest countries and the most developed insurance markets, are not sufficient for pandemic insurance, summarized Zoran Ciric, Communication and PR Adviser, Association of Serbian Insurers in a post on LinkedIn.

One of the conclusions of the panel is that insurance should be digitized, as well as that it should be made more accessible to all.

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