Corporate social responsibility as an element of strategy of insurance companies

Abstract

This study aims to analyse the relationship between corporate social responsibility (CSR) of insurance companies and their market share. The main idea of the research is to indicate that activities aimed at implementing CSR should be considered as an investment, rather than a cost. Insurance is based on trust, and trust is built mostly by a socially responsible business. Effective implementation of the CSR is a crucial instrument for achieving a competitive advantage in the insurance industry, given that it allows the development of positive awareness in relation to a particular insurance company. The research is based on publicly available data on 16 insurance companies operating in the Serbian insurance market. Research results indicate that those insurance companies that have integrated CSR in their strategy, implementing a sustainable business principle, have been recognized as socially responsible by the actual and potential insured persons and other stakeholders, which results in an increase of their insurance premium and market share.