ECONOMIC IMPLICATIONS OF COVID-19 ON THE INSURANCE SECTOR.

The proclamation of the COVID-19 pandemic resulted in the world economy shutdown, which ultimately caused a global recession. Although the consequences of the pandemic were not the same in all national economies and economic sectors, the governments of most countries, in order to mitigate the negative effects of the crisis, adopted fiscal packages to support the citizens and subsequently business entities in their countries, which ranged from 1% to 7% of gross national product. However, these measures do not guarantee the possibility of rapid economic recovery in the long run. During the crisis, a large number of economic entities expected that a part of the loss caused by the negative effects of the pandemic will be covered. However, insurers have encountered not only an increased number of requests, but also an intensification of operational risks, threatened solvency and profitability. Reorganization of business activities of insurance companies has become mandatory, whereas ensuring fair treatment of policyholders and the stability of the insurance sector has become an ultimate condition. [ABSTRACT FROM AUTHOR]