Issues of risk margin computation under Solvency II regulatory regime

The paper deals with the issues of risk margin computation as an element of technical provisions of Insurers under the Solvency II regulatory regime. Due to a lack of regulatory method for the capital cost, in combination with the low interest rates, the risk margin is set too high and variable, which primarily affects life insurance companies. The paper includes particular proposals for overcoming or mitigating the problem of too high and rate-sensitive risk margin. The proposed solutions include both modifications to the existing capital cost method and abandonment and the replacement of this method by other risk margin computation methods.

Covid-19 pandemic: Health risks and far-fetching adverse effects on economic and other trends

From the first quarter of 2020, various levels of governments in all parts of the world, Serbia including, have been trying to use restrictive and other measures to restrain the spreading of Covid-19 pandemic and mitigate the adverse effects, with various outcomes. Although its occurrence has actually set a precedent and is ungrateful for forecasts, the second year of the pandemic has confirmed that there will be, in addition to the present, some medium and perhaps long-term economic effects (recovery of the tourism sector, aviation industry and some segments of insurance business is not likely to happen in the coming years). This paper, inter alia, analyses the effects of the pandemic on the roadside assistance insurance in the Republic of Serbia in 2020. Considering the high relevance of the topic, the research relies upon qualitative and quantitative data in a few scientific disciplines, using different types of sources, starting from the electronic databases, through national and international documents and legal acts, to scientific, professional and other articles. The conclusion is that the Covid-19 pandemic trend has, in addition to the economic and social disruptions, spurred the emergence of new transnational challenges that manifest in the political and moral aspects of the process of immunization of the population against the virus, administered in various countries. Moreover, the beginning of the process of immunization is the first milestone in combating the pandemic and its adverse effects on the people and economy.

Impact of COVID-19 pandemic on the insurance industry

In this paper, the author analyses the impact of the COVID-19 pandemic on internal and external aspects of insurance organizations, and particularly on insurance terms and conditions. The introductory part provides general remarks on the impact of the pandemic on community and economy, also defining the subject of the paper. In the second part, the author explores how insurers responded to new working conditions and behaved in relation to their self-organization and to the public and the insured persons. Particular developments in a macroeconomic and political context relating to covering losses from COVID-19 are also analyzed. The author concludes that a certain delay in making the amendments and supplements to the list of communicable diseases was justified, whereas the main characteristic of extended cover for COVID-19 provided by domestic insurers is not the reimbursement of medical treatment costs but the payment of daily allowance and provision of information and particular services. In addition, the author concludes that wordings used to exclude the risk of communicable diseases may create particular dilemmas as to whether a loss event may be considered insured, depending on the circumstances and time of its occurrence, and depending on the provisions of positive legal regulations.

Meeting liberalization of motor liability insurance premium in Serbia

Free definition of motor third party liability insurance tariffs leads to individual statement of premiums in agreement with the degree of risk the insured are exposed to i.e. their behaviour in the previous period. Using the experience of neighbouring countries, which have introduced a system of liberalization of motor third party liability insurance premiums, with prior quality preparation, Serbia could establish the liberalization of motor third party liability insurance premiums which could significantly contribute to insurance market advancement. This can also affect the behaviour of drivers, whereby we would raise the level of traffic safety and reduce the consequences and damages caused by traffic accidents.

Legal position of a notary public and specific features of his professional liability insurance

The legal position of a notary public and the types of services he provides crucially affect the complexity of his liability, which arises from performing legally prescribed activities. Actions to protect and realize the public and private interest for a fee represent a risk from which the professional liability of a notary public may arise, which is equated with errors and omissions insurance. This leads to multiple types of liability: civil, disciplinary, offence and criminal. In this paper, the author explores the interest of the state, parties and notaries public in relation to the performance of notary public services to the extent relevant to this paper, the legal basis and manner of concluding professional liability insurance of notaries public, setting cover limits and some specific excluded risks and specific features of occurrence of insured event in professional liability insurance by getting an insight into comparative legal solutions of the law regulating notary public services, and finally the views of domestic and foreign legal theory.

Personal interview with clients in insurance agency and brokerage

This Article explores a direct, personal interview as the most important type of communication with a client in insurance agency and brokerage, that is in insurance business as a whole. The accent is primarily placed on the preparation for an interview and within that the selection of clients, scheduling interviews, pro-viding necessary data and preparing the supporting material. It is quite reasonable that this paper predominantly deals with conducting a personal interview, whereby it is advisable to obey particular rules and stages of the interview. The Article also highlights the importance of analyzing the interviews conducted with the Insured. Particular chapters deal with the characteristics of personal interviews in modern environment, especially its relation with machine interview as one of the outcomes of emerging new technology. Insurance agents and brokers have the task to use and benefit from this innovation if they wish to maintain their success on the market.

Two issues concerning insurance-based investment products, in retrospect

This article deals with insurance-based investment products, more precisely, with two key (legal) issues that may be raised in connection with this type of insurance. The first issue concerns the legal nature of the insurance lines that has been addressed in the practice of the European Court of Justice, whereas the second issue concerns regulatory requirements for the distribution of such products, depending on their legal form and qualification. The second issue is all the more important because the difference in regulatory requirements was the impetus and one of the main reasons for a comprehensive reform of the rules of market conduct in the field of insurance and the adoption of Directive 2016/97 (EU) on insurance distribution.

Foreign experience in agricultural insurance

The aim of this paper is to present characteristics of agricultural insurance at the global level. Agricultural insurance is most often seen, in a narrower sense, as crop insurance and livestock insurance. This type of economic protection has been applied since the 18th century, and today it is considered a part of a comprehensive risk management strategy in agricultural production. The most significant differences in agricultural insurance, at the global level, are the risks that can be insured in certain countries, as well as whether, or to what extent, agricultural insurance premiums are subsidized by the state. Agricultural insurance in most countries is voluntary, somewhere it is a condition for exercising the right to agricultural subsidies, and it is mandatory only in Greece and Cyprus.