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The Impact of the Global Financial Crisis on the Structure of Investment Portfolios of Insurance Companies

Author

Listed:
  • Jelena Kocovic
  • Tatjana Rakonjac Antic
  • Marija Jovovic

Abstract

This article deals with the impact of the global financial crisis on the scale and structure of investment portfolios of insurance companies, with respect to their difference compared to other types of financial institution, which derives from the specific nature of insurance activities. The analysis includes insurance companies’ exhibited and expected patterns of behaviour as investors in the period before, during, and after the crisis, considering both the markets of economically developed countries and the domestic financial market of Serbia. The direction of insurers’ investments in the post-crisis period should be very carefully examined in terms of their future implications for the insurance companies’ long-term financial health, and defined in a broader context of managing all risks to which they are exposed, taking into account the interdependence of these risks. Pertinent recommendations in this regard have arisen from research of relevant past experience and current trends, and also from an analysis and comparison of views on this subject presented by a number of authors.

Suggested Citation

  • Jelena Kocovic & Tatjana Rakonjac Antic & Marija Jovovic, 2011. "The Impact of the Global Financial Crisis on the Structure of Investment Portfolios of Insurance Companies," Economic Annals, Faculty of Economics and Business, University of Belgrade, vol. 56(191), pages 143-162, October-D.
    • Handle: RePEc:beo:journl:v:56:y:2011:i:191:p:143-162
    as

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    References listed on IDEAS

    as
    1. Ian Tower & Gregorio Impavido, 2009. "How the Financial Crisis Affects Pensions and Insurance and Why the Impacts Matter," IMF Working Papers 2009/151, International Monetary Fund.
    2. Martin Eling & Hato Schmeiser, 2010. "Insurance and the Credit Crisis: Impact and Ten Consequences for Risk Management and Supervision," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 35(1), pages 9-34, January.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    global financial crisis; life insurance; non-life insurance; investment portfolio; investment risk;
    All these keywords.

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies

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