XPRIMM: What have been the results of the SORS Academy's work so far?

Zorana PEJČIĆ: The SORS Academy has achieved significant success in the previous period. In addition to connecting insurers, reinsurers, and intermediaries from across Europe through its activities, the Academy has also provided education to 160 participants. Our programs have attracted participants from the countries of the former Yugoslavia, as well as from Europe, Asia, and CIS countries. We have addressed more than 150 different case studies carefully selected to align with current trends in the insurance and reinsurance sectors both domestically and internationally. Approximately 60 mentors, including our colleagues and distinguished experts from insurance and reinsurance companies around the world, have provided their expertise. Alongside numerous international companies such as Axis Re, Deutsche Rück, SCOR, Hannover Re, Howden Re, Guy Carpenter or for example Ageas Re, we have seen strong participation from lecturers in the region, including representatives from companies like Wiener Städtische Serbia, Grawe Insurance Montenegro, Generali Insurance Serbia, Dunav Reinsurance Serbia, Marsh Croatia, Triglav Re Slovenia, Bosna Re Bosnia and Herzegovina and many others.

The Academy’s activities have also been supported by various stakeholders outside the insurance industry. A significant contribution was made by the credit rating agency AM Best, which, through its support, effectively promoted the importance of education in the insurance and reinsurance sectors.

We are more than satisfied with the results achieved in 2024, which was also the first year of the Academy's active operations. I believe we have succeeded in establishing a recognizable standard of effective education, thereby fulfilling the goals of our establishment, earning the trust of our members and participants, as well as the recognition of the professional community.

XPRIMM: What were the primary reasons for establishing the SORS Academy?

Z.P.: When my colleagues and I launched the idea of founding an educational center two years ago, the main motivation was to promote insurance and increase the visibility of this industry among young people. However, today, two years later, in addition to this initial motivation, there is also a very important aspect of educating personnel already working in the insurance and reinsurance sectors.

The insurance industry is highly dynamic, continually innovating, and consistently developing and applying new knowledge. This makes it a wonderful and dynamic place for work and professional development for all participants. Our goal is to help employees in the insurance industry, both in our country and in the region, as well as in Central and Eastern Europe, gain knowledge through an interactive learning approach, helping them understand new products and risk management methodologies.

XPRIMM: What does the Academy offer that other insurance-related training programs do not, and should attending the Academy be viewed as part of a continuous professional development process in insurance?

Z.P.: The Academy is, as I see it, the first and, to date, the only educational center in Central and Eastern Europe that organizes training through event simulations and interactive work, bringing together stakeholders from a wide range of countries.

Our Academy’s programs are based on case studies. This means that participants have the opportunity to engage with real-life risks. Theoretical training is minimized, with the emphasis placed on solving practical issues that participants encounter in the field. Mentors are tasked with selecting a topic, finding a model, and simulating a case in such a way that each individual participant is fully engaged. Furthermore, mentors are responsible for fostering teamwork when solving specific tasks.

However, what sets the Academy apart is that, in our workshops, representatives from insurance and reinsurance companies as well as brokerage firms from different countries work together. This gives us a broader perspective and creates a new synergy in proceeding the education as different practices, experiences, and corporate cultures intersect, cross-pollinate, and are discussed.

XPRIMM: How would you assess the knowledge level in the insurance market, and where do you see the most significant opportunities for improvement? What is the situation with younger vs. older employees?

Z.P.: If we talk about Serbia and the former Yugoslav region, the knowledge level in the insurance market is by far higher than it was ten or fifteen years ago.

Many companies in the region have established their own internal schools, more funds are allocated for education in their budgets, and acquiring new knowledge has become an integral part of career paths for employees in the insurance sector. In our country, much has also improved. There is more discussion about the importance of insurance, and institutions are paying more attention to this sector.

I believe there is a need for more such initiatives as is SorS Academy, as they are one way to increase the visibility of the insurance industry and demonstrate its full economic and social significance.

XPRIMM: The SORS Academy focuses on educating people already employed in the insurance sector or those who aspire to join it. Can the Academy also contribute to the broader education of the public or potential insurance clients?

Z.P.: The Academy's primary goal is to educate current and future experts in the field, but it does not exclude the social responsibility we embrace. We strive to provide education for students and employees outside the insurance sector as well.

We are proud to have provided free education to 10 students in 2024, who came to us from the Faculty of Mechanical Engineering and the Faculty of Transportation at the University of Belgrade, as well as the Higher Business School in Novi Sad. We hope this trend will continue in the coming years.

Regarding businesses outside the insurance sector, I believe it is necessary to include them in some form of education, primarily to help them understand their exposure to new risks and their potential risk appetite. Only through full awareness can long-term partnerships with insurers be established. We have received positive responses from the business sector regarding education in insurance, which is very encouraging, and we are ready to contribute to this as well.

XPRIMM: You have worked in insurance for many years. What do you see as the biggest challenges for insurers in the near future?

Z.P.: The insurance industry has long been recognized as a sector that requires the ability to adapt quickly, even when changes do not occur overnight. As the environment continues to evolve, it is crucial for insurers to be aware of the various challenges they face and to address them strategically.

The challenges facing insurers are numerous. I would highlight climate change, cyber threats, and the shortage of skilled labor as the most pressing.

According to a Swiss Re report, total economic losses from natural disasters alone reached USD 310 billion in 2024. Severe convective storms (SCS), tropical cyclones, and floods account for almost 90% of all global insured losses related to natural hazards and 85% of total economic losses. The year 2024 marked the fifth consecutive year in which insurance losses from natural disasters exceeded $100 billion.

As risks related to climate change and natural disasters continue to rise, financial consequences are becoming increasingly pronounced, whether dealing with the risk management of climate transition or operational disruptions caused by extreme weather events and ecosystem degradation.

Consequently, insurers must continuously assess and adjust their models and coverage conditions, as well as their risk transfer models through reinsurance. At the same time, insurers need to ensure they remain fair to their clients, support their development and the overall economy, and preserve their own sustainable growth.

Furthermore, while the digital age has brought many conveniences, it has also introduced significant vulnerabilities in cybersecurity. Cyberattacks are not only a threat to data but also pose a risk to client trust and long-term reputational damage. According to Allianz, cyber incidents, such as ransomware attacks, data breaches, and IT outages, will remain the biggest global risk for 2025.

It is a fact that the global insurance industry is facing a shortage of qualified professionals and is in constant demand for new talent. Investing in technology and automation can only partially help insurers mitigate the impact of the talent crisis.

However, when discussing the attractiveness or unattractiveness of the industry, it is important to emphasize that highly qualified professionals remain the backbone of the insurance industry, as it is the human factor that recognizes nuances and makes strategic decisions. That is precisely why the industry must put additional effort into developing existing and creating future experts. Focusing on the development and training of professionals in our industry through comprehensive educational programs, offering opportunities for professional growth, and providing initiatives for advancement will undoubtedly attract new talent and enhance the role and satisfaction of existing professionals.

XPRIMM: What are the future plans for the SORS Academy?

Z.P.: The Academy has published its education program for 2025. We will cover various attractive topics, such as insurance and reinsurance in agriculture, construction, liability, natural disasters, etc. What is particularly important is that we have planned field-based education with organizing risk surveys.

Throughout 2025, we will host lecturers from Swiss Re, Odyssey Re, SCOR, Gallagher Re, Charles Taylor, and many others. Our guest will also be the renowned Dr. Michael Buser, who has been active in the insurance and reinsurance industry for over 30 years. He will work with participants through the program on the Prevention and Assessment of Industrial Risks, including field inspections of risks.

Additionally, for this year, we have planned a series of actions to help raise awareness among young people about the significance and role of insurance.