THE GLOBAL INSURANCE MARKET AFTER THE HEALTH CRISIS CAUSED BY THE COVID-19 VIRUS

Abstract

The global insurance market, represents the total relations that exist between insurance companies
(insurers) and insurance users. Today, in an extremely turbulent business environment, which is conditioned by a
number of external factors, the global insurance market, as well as other segments of the capital market, should be
ready for all the challenges. One of such challenges is certainly the pandemic caused by the Covid-19 virus. The aim
of the paper is to indicate the impact that the health crisis caused by the Covid-19 virus has had on the global
insurance market. It is undeniable that the pandemic caused by the Covid-19 virus has caused a crisis in the world,
in all sectors and areas of business. There has been a slowdown in economic activity globally, while at the same
time healthcare and other pandemic-related costs have risen. All of that, of course, also affected the global insurance
market. During 2020, the growth of premiums slowed down by more than 2.8% compared to the previous period,
and the profit of insurance companies decreased by more than 15% compared to previous years. Thus, the already
unstable global insurance market suffered a lot of pressure, but it survived quite well in the conditions of reduced
activity. Thanks to economic policy measures and, of course, vaccination, the global insurance market is on its way
to recovery in 2021. All these changes led to the remodeling of insurance development trends in the following years.
Due to the pandemic and the limited movement of people, remote business is becoming a priority, both in commerce
and in the financial market. Today it is no longer important whether people come to work and do it as in the good
old days, or work from home. In such conditions, many companies, including insurance companies, have decided to
do part of their work or the entire business online. This required that the employees, as well as the management of
the insurer, were ready to accept the new organization and new tools, in order to perform their work. It was
understood that the employees are flexible, that they want to learn and progress through the organization, in order to
succeed in fulfilling all the requirements. Today, in modern society, innovative companies that are ready to respond
to consumer needs more quickly and efficiently certainly achieve better business results. That is why the
implementation of a modern way of working, which includes online work with users, will certainly remain
imperative in the years after the pandemic.