The Impact of Globalization on the Insurance and Reinsurance Market of Eastern Europe

The analysis of the influence of globalization on the insurance and reinsurance markets of Eastern Europe confirms its significant importance in directing it towards steady increase, reflecting global trends. Special attention in this paper has been dedicated to the new thriving market in the insurance and reinsurance business as a basic indicator of market globalization with special attention to Eastern Europe. Namely, the business environment in Eastern Europe is especially dynamic and complex regarding the phase of altering its social-economic system. The research in this paper covers analysis of insurance and reinsurance markets of Eastern Europe with special attention on this market in the Republic of Slovenia, the Republic of Croatia and the Republic of Serbia from 2000 to 2008. The subject of this research is an overview and analysis of the reflexive relationship between the insurance and reinsurance markets of Eastern Europe and the globalization processes on both micro and macro levels. The main goal of the research is to obtain specific results about the intensity and direction of the influence of globalization processes on the course and direction of development of the insurance and reinsurance markets of Eastern Europe on the one hand, and changes in the insurance and reinsurance markets of Eastern Europe on globalization processes on the other. The basic hypothesis of this research is that there is a distinctive and strong reflexive relationship between the globalization processes and the conditions and state of the insurance and reinsurance markets of Eastern Europe. The applied methodology during the research includes analyses and synthesis methods. The research results undoubtedly confirm the significance of the relationship between globalization trends and changes in the insurance and reinsurance markets of Eastern Europe, hence providing a found and background for further research in this area.