Insurance as a Model for Protecting the Economic System from Natural Disasters
DOI:
https://doi.org/10.66050/z82mwm80Keywords:
insurance, protection, prevention, risk, disaster, public interestAbstract
Natural disasters increasingly generate serious economic consequences, including direct property losses, disruption of production and trade flows, increased public expenditure, and pressure on state budgets. In this context, insurance represents an important instrument of disaster risk financing and economic system protection. The aim of this paper is to examine the role of insurance as a model for protecting the economic system from the consequences of natural disasters, with particular reference to the Republic of Serbia. The paper applies normative legal analysis, theoretical analysis, comparative analysis, and secondary data analysis. Special attention is given to the relationship between voluntary and compulsory insurance, public-private partnership models, catastrophe insurance pools, and the role of the state in disaster risk financing. The findings indicate that an effective insurance system can reduce the financial burden on the state, accelerate post-disaster recovery, and strengthen the resilience of households, businesses, and the wider economic system. However, in Serbia, the development of such a model requires stronger institutional support, improved insurance culture, subsidized premiums for vulnerable groups, reliable hazard data, and a clearer division of responsibilities between the state, insurers, and insured entities. The paper concludes that a combined public-private model of disaster insurance would be the most appropriate direction for strengthening economic resilience to natural disasters in Serbia.
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