The economic crisis and the insurance industry: The evidence from the ex-Yugoslavia region

Njegomir, Vladimir; Marović, Boris; Maksimović, Rado

doi:10.2298/eka1085129n

Cited by 6 publications

(1 citation statement)

References 5 publications

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“…Particularly noticeable is lag in life insurance. In four countries of the former Yugoslavia life insurance premium was less than 15 euros per capita and this explains why this type of insurance was less influenced by the financial crisis [18]. Also, it is noticeable that in the top ten countries ranked by the amount of the insurance premium, eight are members of the European Union.…”

Section: Competition and Development: The Insurance Market In Former ...mentioning

confidence: 97%

Competition in insurance markets of the region of former Yugoslavia

Marović¹,

Njegomir²,

Marković³

2013

Ekonomika preduzeca

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Competition is the essence of success [20], suggests Michael Porter, a leading scientist in the field of business strategies and competitiveness. According to Porter, competition defines validity of activities undertaken by specific companies which include innovation, culture, or practical implementation. Analysis of competition and competitive position is crucial for market success of each insurance and reinsurance company. In this paper, we focus to the analysis of the competition in insurance markets in the countries of former Yugoslavia. The main conclusion is that without an enhancement of competitive advantage, driven by improvements in productivity, innovation and costs, insurance companies will not be able to achieve successful business performance in the future. Improving competition in not only in the interest of individual insurance companies, but also of the market as a whole and thus the insured, given that the improved competition brings improved quality of service and lower insurance premiums.

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Section: Competition and Development: The Insurance Market In Former ...mentioning

confidence: 97%

Competition in insurance markets of the region of former Yugoslavia

Marović¹,

Njegomir²,

Marković³

2013

Ekonomika preduzeca

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The Impact of the 2008-2009 Global Crisis on Manufacturing Firms’ Bank Accounts, Overdraft Facilities, And Loans

Kaya

2022

FMIR

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In this study, we focus on manufacturing firms in Eastern Europe and Central Asia and examine the impact of the 2008-2009 Global Crisis on these firms’ accounts, overdraft facilities, and loans. Our objective is to see if the crisis affected the number of manufacturing firms that have a checking/savings account, that have an overdraft facility, or that have a line of credit/loan. We also want to see whether firms changed the type of financial institution that they borrowed from (i.e. private commercial bank, state-owned bank/agency, or non-bank financial institution). Our results show that, post-crisis, a significantly lower percentage of manufacturing firms had an overdraft facility. Also, post-crisis, a significantly lower percentage of firms had a line of credit/loan. On the other hand, there was no significant change with respect to the % of firms having a checking or a savings account. Also, there was no significant change with respect to the percentage of firms borrowing from a private commercial bank, a state-owned bank/agency, or a non-bank financial institution. Overall, we conclude that, after the crisis, financial institutions in the region significantly cut their credit facilities to manufacturing firms while firms continued to transact with the same institution or a similar institution.

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The impact of the 2008-2009 global crisis on the collateral requirement for loans: the case of manufacturing firms

Kaya

2023

SEC

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This paper summarizes the arguments and counterarguments within the scientific discussion on the issue of changes in financing conditions due to a global financial or economic crisis. The main purpose of the research is to examine how the loan collateral requirement for manufacturers in Eastern Europe and Central Asia had changed after the 2008-2009 Global Crisis. Systematization of the literary sources and approaches for solving the problem of changes in collateral requirement after the 2008-2009 Global Crisis indicates that there were some significant changes in terms of the collateral requirement and the type of collateral used post-crisis. The study is important because its findings will guide manufacturing firms, as well as lenders and government agencies in the region in case of an upcoming financial or economic crisis. Investigation of the topic of collateral requirement in the paper is carried out in the following logical sequence: First, the percentage of manufacturers that were required to show a collateral for obtaining a new loan is examined pre- and post-crisis. Then, the type of collateral that was used pre- and post-crisis is examined. The study uses six years of research data: the 2007 survey responses were used as the pre-crisis data and the 2010-2014 data were used as the post-crisis data. We focus on manufacturing firms in Eastern Europe and Central Asia because we have detailed data from the BEEPS IV and BEEPS V surveys of EBRD-World Bank. The paper presents the results of an empirical analysis of collateral requirement and type of collateral used, which shows that fewer manufacturers reported a collateral requirement for new loans post-crisis. When we examine the different types of assets that were used as collateral, we find that there were some significant changes from the pre-crisis period to the post-crisis period. We find that, post-crisis, fewer manufacturers used lands and buildings, machinery and equipment, or other items as collateral for new loans. There was no significant change in the percentage of manufacturers that used accounts receivable and inventories as collateral. On the other hand, our results show that, post-crisis, more manufacturers used personal assets of the owner as collateral. Overall, although fewer firms reported a collateral requirement for new loans post-crisis and fewer firms needed to show lands and buildings, machinery and equipment, or other items as collateral, more firms had to show their owner’s personal assets. The research empirically confirms and theoretically proves that governments and lenders reduced the collateral requirement in this region and that in these times of deteriorating financial conditions, as a last resort, manufacturers had to use the owner’s personal assets as collateral. The results of this research can be useful for manufacturing firms, as well as for lenders and government agencies in the region.

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The economic crisis and the insurance industry: The evidence from the ex-Yugoslavia region

Cited by 6 publications

References 5 publications

Competition in insurance markets of the region of former Yugoslavia

Competition in insurance markets of the region of former Yugoslavia

The Impact of the 2008-2009 Global Crisis on Manufacturing Firms’ Bank Accounts, Overdraft Facilities, And Loans

The impact of the 2008-2009 global crisis on the collateral requirement for loans: the case of manufacturing firms

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