Enterprise Management and Regulation of Economic Activity: The Case of Insurance

Modern enterprise is functioning in a market space in which it is subjected to the whole network of intervention tools in the form of economic regulations. These regulations limit the freedom of its economic activities impacting the business models in use, its internal organization, management systems and, last but not least, its market value. Degree and strength of regulatory intervention is highly differentiated in various countries, depending on the cultivated social and economic model. It also varies depending on the area of economic activities in different groups of enterprises, according to the current perception of its systemic significance. Especially strong regulatory interventions are currently applied for financial institutions. It is because they are threatening the existence of the whole system via the systemic risk they are able to generate. The article explores principal challenges and issues facing the insurance operations and relates them to the enterprise management.