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The Austrian Insurance Industry in CESEE: Risks and Opportunities from a Financial Stability Point of View

Author

Listed:
  • Teresa Bianchi

    (Austrian Financial Market Authority)

  • Gernot Ebner

    (Oesterreichische Nationalbank, Financial Markets Analysis and Surveillance Division)

  • Raimund Korherr

    (Austrian Financial Market Authority)

  • Eva Ubl

    (Oesterreichische Nationalbank, Financial Markets Analysis and Surveillance Division)

Abstract

This study gives an overview of the insurance market in Central, Eastern and Southeastern Europe (CESEE) in general and of the Austrian insurance groups’ activities in the region in particular. Moreover, it deals with risk management issues and the challenges arising from the new EU regulatory framework, Solvency II. We identify the main risks and opportunites for insurance groups in this respect: While potential market growth rates and still higher margins represent the main opportunities, there is also evidence of some reputational as well as financial risks. Further, cross-border business activities also pose some challenges for the risk management of internationally active insurance groups. From a macroprudential perspective, the Austrian insurance groups’ exposure to CESEE augments the exposure of Austria financial institutions to this region.

Suggested Citation

  • Teresa Bianchi & Gernot Ebner & Raimund Korherr & Eva Ubl, 2011. "The Austrian Insurance Industry in CESEE: Risks and Opportunities from a Financial Stability Point of View," Financial Stability Report, Oesterreichische Nationalbank (Austrian Central Bank), issue 22, pages 88-106.
    • Handle: RePEc:onb:oenbfs:y:2011:i:22:b:3
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    References listed on IDEAS

    as
    1. Ian Tower & Gregorio Impavido, 2009. "How the Financial Crisis Affects Pensions and Insurance and Why the Impacts Matter," IMF Working Papers 2009/151, International Monetary Fund.
    2. Ms. Janet Kong & Mr. Manmohan Singh, 2005. "Insurance Companies in Emerging Markets," IMF Working Papers 2005/088, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Milijana Novoviæ Buriæ & Julija Ceroviæ Smoloviæ & Milena Lipovina Božoviæ & Ana Laleviæ Filipoviæ, 2017. "Impact of economic factors on life insurance development in Western Balkan Countries," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 35(2), pages 331-352.
    2. Casper Christophersen & Petr Jakubik, 2014. "Insurance and the Macroeconomic Environment," EIOPA Financial Stability Report - Thematic Articles 1, EIOPA, Risks and Financial Stability Department.
    3. Pierre-Emmanuel Darpeix, 2015. "Systemic risk and insurance," Working Papers halshs-01227969, HAL.

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    More about this item

    Keywords

    Central; Eastern and Southeastern Europe; Insurance; Austria;
    All these keywords.

    JEL classification:

    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • F15 - International Economics - - Trade - - - Economic Integration

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