Paul Johannes Spittau, Head of Group Carrier Relations & Insurance Mediation at GrECo International, interviews Faris Fazlibegović, General Manager at GrECo BiH. They discuss the impact of geopolitical, economic, and environmental factors on corporate risk landscapes and the insurance industry’s role in navigating these challenges.
Spittau: We live in turbulent times, what are the specific developments and challenges facing your clients?
Fazlibegović: Over the next five years, our clients face a complex landscape shaped by global and local challenges. Market growth amidst global uncertainty, economic pressures, and employment challenges will influence their experiences. Digital transformation and changing consumer behaviour are also forcing businesses to adapt swiftly.
It’s in times like these that certain types of insurance come to the forefront. Trade credit insurance is vital for financial risk protection; regulatory alignment with EU standards is crucial; and climate change and environmental risks necessitate robust management strategies. Furthermore, as the world becomes increasingly digitized the exponential rise in cybersecurity threats demands businesses to safeguard their digital assets, whilst the expanding health insurance market reflects the growing need for comprehensive healthcare solutions.
Strengthening Capacities for Cyber Security in Bosnia and Herzegovina
Spittau: You mention the increased rise in cyberthreats. Can you tell us a bit more?
Fazlibegović: In 2024, Bosnia and Herzegovina faced several significant cyber-attacks that highlighted weaknesses in its cybersecurity infrastructure. Attacks on the health system led to the leakage of sensitive data; media portals experienced continuous cyber-attacks, hindering their ability to inform the public; and Distributed Denial of Service attacks disrupted online services and caused financial losses.
In response, in November 2024, Bosnia and Herzegovina held a Regional Conference on Security Coordination, focusing on strengthening regional cooperation in combating cyber threats. The UNDP initiated the project “Strengthening capacities for cyber security in Bosnia and Herzegovina,” aiming to assess existing resources and establish coordination mechanisms for better protection against cyber threats. These efforts are expected to enhance cybersecurity measures and protect people and the economy from future cyber-attacks.
Political, Economic, and Ecological Conditions Affecting Corporate Risk
Spittau: What impact are current political, economic, and ecological conditions in Bosnia and Herzegovina having on the corporate risk landscape, and what’s the knock on effect for the insurance industry?
Fazlibegović: All three are having significant impacts. Political instability and ethnic divisions are creating uncertainties that are affecting business operations and investments. Economic challenges such as high unemployment, brain drain, and dependence on remittances are hindering growth and innovation. And, environmental issues, including deforestation, pollution, and inadequate waste management, are posing risks to businesses and communities. With such uncertainty there are of course knock on implications for the insurance industry. Companies must develop strategic approaches to manage these risks, invest in technology, and adapt their products to market needs to ensure competitiveness and long-term stability.
Future industry investment on the rise
Spittau: Which industries are expected to see more investments in the future, and what impact will this have on the risk industry?
Fazlibegović: Renewable energy and green technologies are gaining momentum as the country embraces sustainable energy sources and the drive for infrastructure development and urbanization is fostering growth in construction and engineering projects. Whilst, the rapid pace of technology and digitalization is reshaping industries, leading to significant investments in ICT and digital solutions. There’s increased investment in travel and accommodation services too as tourism and hospitality expand. Further investment can be seen in the manufacturing sector, which is witnessing growth supported by investments in production facilities and innovation; and financial services and fintech are evolving with increased investments in digital banking and financial technologies. Plus, the healthcare and pharmaceutical sectors are expanding, driven by the demand for advanced medical solutions.
All these developments will inevitably impact the risk industry. New risks will emerge, and existing ones will evolve, requiring a dynamic approach to risk management to navigate this ever-changing landscape effectively.
Regulatory Challenges Facing Companies
Spittau: What regulatory challenges are companies facing?
Fazlibegović: Transitioning to Solvency II standards is presenting significant challenges for insurers, and motor liability insurance liberalization is currently affecting pricing and market dynamics. The insurance market is constrained by low spending power and so our limited consumer base and economic constraints are also posing challenges. Furthermore, ensuring we are aligning with EU directives and digitalization efforts requires continuous adaptation and compliance – a challenge in itself!
The Evolution of the Insurance Broker Market
Spittau: How is the insurance broker market evolving in your country and how does GrECo’s approach differ?
Fazlibegović: The insurance broker market in Bosnia and Herzegovina is evolving in line with the overall growth of the insurance sector. In recent years, the market has recorded an increase in premiums, attracting both domestic and international brokerage companies. The regulatory framework for insurance brokers is defined by laws and regulations, with mandatory liability insurance and supervision by the Agency for Supervision of Insurance Companies. The presence of international brokers is expected to drive further growth and development in the market.
GrECo BIH, as the first international broker, started working in January 2025 and has been positively evaluated by domestic clients and insurance companies. GrECo’s rich international experience, our deep understanding of the local market specifics, and our approach of needs analysis and risk assessment to provide specialised solutions tailored to the needs of our corporate clients sets us apart from the competition.
Paul Johannes Spittau
Head of Group Carrier Relations & Insurance Mediation
T +43 664 537 17 42
Faris Fazlibegović
General Manager
GrECo BiH
T +387 61 142 734
