Insurance Sector and Climate Changes in Serbia

Abstract

Climate changes have a strong negative impact on the insurance sector, which is reflected in the slow development of the insurance sector and in the transfer of the greater part of risk on the state and individuals. The difference between collected and paid premiums on the basis of incurred losses is rapidly decreasing, which leads to the fact that insurance market is less and less capable of absorbing the losses associated with climate changes, which then has negative repercussions on the availability of insurance services at an affordable premium. The question of establishing potential long and short-term effects of climate changes on business activities of insurance and reinsurance companies represents a priority and its ultimate objective is to find ways to minimize risks and losses.

The problem of climate changes represents an important social problem in today’s civilization. At the same time, it is also an ecological problem, but also economic, political, social, cultural, health, etc. It is a global ecological problem, hence we can speak about global climate changes which affect states, nations, continents regardless of where they are and how responsible they are for creating and sustaining these changes.