RISK MANAGEMENT AND ITS IMPACT ON THE PERFORMANCE OF INSURANCE COMPANIES - THE CASE OF KOSOVO

Abstract

Experience of successful businesses in the insurance field has shown that
risk management provides wealth preservation and growth, enhancing reputation
regardless of scope, taking into account the fact that the risk is not only a threat,
but it also presents opportunities if the insurance company is prepared in time to
handle it adequately.
International studies show that insurance companies with good risk
management have better return on equity and better performance in other key
business indicators in comparison with competitors who do not give great
importance to risk management.
This study will use structured questionnaires to explore the extent of the
application of risk management in insurance companies in Kosovo and its impact on
their business performance. Also, the annual reports of companies are used to see
the financial performance of companies. The hypothesis of this study relates to the
impact of risk management in the financial performance of companies participating
in the study.
Thus, it can be understood that the information provided may present the
situation of the sector and behavior of the insurance market in Kosovo in terms of
risk management policies and how they influenced modern risk management in the
company's financial performance in the insurance market of Kosovo. Hence, these
data can be of great interest to any other local companies to prompt them to put
risk management at the top of their agenda when it is known that in this area remain behind shell companies in the region and EU 's.