Transformation of the Insurance Market
The monograph „Transformation of the Insurance Market – Responses to New Challenges“ examines the possibilities for adapting the insurance market to an uncertain and turbulent macroeconomic environment. The global economy was still recovering from the financial crisis when the COVID-19 pandemic brought about a new crisis. Just as a rapid recovery began, a new economic crisis emerged, triggered by the war in Ukraine and the consequent energy crisis. Declining economic activity, rising inflation, and increasing interest rates are new challenges that insurance companies must now navigate as critical players in the market. Despite the challenges, the insurance market has demonstrated resilience, as evidenced by the growth in insurance premiums. However, it’s important to note that there has been a decline in the real value of insurance premiums, an increase in liabilities, a decrease in the real value of claims reserves, and a drop in the real value of the assets covering technical reserves. Macroeconomic challenges have adversely affected the performance of insurance companies. If the insurance market fails to adapt to the dynamically unstable macroeconomic environment, the consequences for insurers’ solvency could be severe. Furthermore, the unfavorable geopolitical situation and economic crisis are compounded by the growing frequency of natural disasters due to climate change, causing immense material damage and loss of life. This raises the question: can insurance companies take on these severe risks without jeopardizing their own survival? The authors of the monograph have endeavored to answer these and other related questions.