The Implications of the Financial Crisis to the Insurance Industry – Global and Regional Perspective

Abstract

This paper analyses the impact of global financial crisis on individual functional operations and resulting insurance industry's relationships with regulators, rating agencies, insureds, reinsurers and capital market investors in order to determine current insurance industry position and to derive a conclusion on necessary measures that have to be taken by insurance companies. The research results indicate that global financial crisis has negative impact on all aspects of insurance companies' business and suggest the need to focus on core business activities and the necessity of further improvement of holistic risk and capital management of global and regional insurers with the aim to overcome problems imposed by financial crisis.1