Insurance Investments Management—An Example of a Small Transition Country

Željko Šain (), Edin Taso () and Jasmina Selimović ()
Additional contact information
Željko Šain: University of Sarajevo
Edin Taso: Insurance Supervisory Agency in FBiH
Jasmina Selimović: University of Sarajevo

A chapter in Advances in Econometrics, Operational Research, Data Science and Actuarial Studies, 2022, pp 573-591 from Springer

Abstract: Abstract The COVID-19 pandemic during 2020 is the cause of the global health, economic, financial, and social crisis, which in terms of scale and possible harmful consequences has not been recorded since the global financial crisis in 2007–2008. For the BiH economy, risk exposure is particularly pronounced in terms of increased market risk of illiquidity of the economy, public and private companies, more precisely, illiquidity risk of (re) insurance company. The paper actualizes the application of modern methods in the management of the investment portfolio of a (re) insurance company, primarily methods for managing the risks of the securities portfolio and methods for managing credit risk. The starting point in this paper is the current domestic regulations on insurance, as well as the prescribed methodology for assessing the main risks and for quantitative analysis of the impact of the investment portfolio on the solvency of (re) insurance companies in BiH. To assess the risk of the securities portfolio, a model of variance and standard deviation was used, which show the degree of deviation of the security’s return from the expected average return, while the return (positive, or negative, or zero) is measured by rising or falling or keeping the price of the security at the same level between two measurement periods. The relationship between yields between two securities is measured by the correlation coefficient and covariance.

Keywords: COVID-19 pandemic; Crisis; Insurance industry; Investment risks; Securities risks; Credit portfolio (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:conchp:978-3-030-85254-2_34

Ordering information: This item can be ordered from
http://www.springer.com/9783030852542

DOI: 10.1007/978-3-030-85254-2_34

Access Statistics for this chapter

More chapters in Contributions to Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().