COOPERATION OF SMEs AND INSURANCE COMPANIES IN CREATION OF MARKETING VALUE OF INSURANCE PREMIUMS

Small and medium enterprises (SMEs) are the backbone of the development of countries in transition. They contribute to an increase in GDP, exports, market economy and its competitiveness, since they have the largest capacity of rapid adaptation to market changes. Insurance market is certainly one of...

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Bibliographic Details
Main Authors: Lecic-Cvetkovic, Danica, Kostic-Stankovic, Milica, Cvijovic, Jelena, Kompirovic, Ognjanka
Format: Conference Proceeding
Language:English
Subjects:
Cooperation
Developing countries
Distribution channels
Economic growth
Employees
GDP
Gross Domestic Product
Insurance agents & brokers
Insurance companies
Insurance industry
Insurance policies
Insurance premiums
LDCs
Life insurance
Market value
Marketing
Modems
National banks
Per capita
Perceptions
Small & medium sized enterprises-SME
Studies
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Summary:Small and medium enterprises (SMEs) are the backbone of the development of countries in transition. They contribute to an increase in GDP, exports, market economy and its competitiveness, since they have the largest capacity of rapid adaptation to market changes. Insurance market is certainly one of the most perspective ones in transition countries like Serbia, but also one that is strengthening each year. Although the sum of overall insurance premium is increasing, there is still a lack of public awareness of the necessity and significance of possessing various kinds of insurance policies. One of the opportunities lies in establishing cooperation between SMEs and insurance companies in order to create more attractive and, from consumers ' point of view, valuable offer. This cooperation is based on the fact that SMEs are primarily engaged in certain forms of service activities and, therefore, can be an effective insurance distribution channel. Secondly, SMEs are tending to be the most profitable segment of insurance market if they overcome the legally imposed framework of obligatory insurance and accept it as a voluntary action. SMEs are in a position to contribute the creation of marketing value of insurance premiums, which can bring significant benefits to enterprises, insurance companies, employees and general public. Therefore, this paper examines the degree of existing cooperation of small and medium-sized businesses and insurance companies in Serbia and the current role that SMEs have in this cooperation. The aim of this paper is to highlight the importance of such cooperation and suggest ways of its further improvement.
ISSN:1849-6903
1849-6903