A Glance at Globalization in the Insurance Sector and the Participation of Foreign Insurers in Reinsurance
Author: Professor Dr. Marin Neykov (University of National and World Economy, Sofia)
Keywords: globalization in insurance, distance communications, guidelines of globalization, insurance content, reinsurance.
The beginning of this article gives a brief characterization of globalization in the insurance sector. Further the basic guidelines of globalization are revealed, the higher requirements that Bulgarian insurers have to meet posed by the world-famous insurance companies operating in our market are discussed, and the advantages of globalization for the development of the sector in the domestic market are analyzed. The author proposes a set of measures to implement in order to provide opportunities and preconditions for meeting the challenge of globalization and for introducing the European insurance model. The extension of the application of distance communication devices in conditions of globalization puts forward the problem of broadening and improving the quality of customer information. That is why the present day lays emphasis on the information content needed by the customer to make informed decisions about the insurance product and the terms of insurance. Finally the article discusses the importance of reinsurance as a channel of globalization in the sector and the expected changes in it. The accent in this part is put on the necessity of introducing measures for protection of national interests in reinsurance.