Risk management in insurance: trend analysis of claim files and compensation values for Romania

The insurance industry is a critical component of financial stability for individuals and businesses, providing essential risk management solutions that mitigate the potential adverse impacts of unforeseen events. As a complex and dynamic sector, the industry continually adapts to various evolving factors that influence its operations, particularly in claims handling and compensation. The paper aims to analyze, by using statistical and econometrical methods, the trends and the seasonal evolutions of several claim files and the compensation value, the statistically significant association for these indicators for Romanian available data for the period 2011-2023 (monthly data). Therefore, our results show the evolution of the number of claims files and the compensation value through the absolute, relative, and average indicators for time series, identified the trends based on the econometric method, identified the best and the worst season by using seasonal analysis based on monthly averages and emphasis the association of claims and compensation values by using Pearson correlation coefficient and linear regression model Such an understanding is critical for optimizing claim management processes, enhancing risk assessment protocols, and informing strategic decision-making within the insurance sector. The research highlights the need for continuous adaptation and innovation in risk management practices to address the evolving risk landscape. This study aims to contribute to the academic discourse on insurance risk management by offering actionable insights for industry practitioners, policymakers, and scholars