Nowadays contemporary companies operate in constantly changing surroundings. Change from a traditional into a digital economy, from economy based on old technology to economy led by technology, from ecologically unaccepted to green, stable and sustainable economy, from economy based on labor and capital to economy based on knowledge, from national to global economy, from profit based economy into a socially responsible economy. Everything listed is happening simultaneously with huge climate changes, with 2008. global financial crisis, COVID-19 crisis (2020.-2021.), inflation (2022.) and it causes numerous challenges of managing the insurance industry. These changes bring new risks and require that insurance industry should be more than ever guarantee of financial and economic stability and important factor for economic growth. At the beginnings insurance started as an activity based on mutual assistance where members were allocating damages through different informal institutions. However, nowadays insurance activity represents a very complex and highly organized system that protects people and their property. In developed economies, insurance companies are very important segment of the financial industry. Insurance companies are non-deposit, non-banking and non-credit financial institutions and their main role is to redistribute risk from one insured to all that are insured and to pay them the appropriate compensation for the occurred damage or to pay an appropriate amount of the money in accordance with the concluded insurance contract. The main challenge in changing surrounding is making successful business relations. Previously, managing was orientated on achieving maximum profit, while today optimal profit is in focus. It is not enough to satisfy individual needs, but it is also very important to include and to take into consideration the needs from the whole community. Profit is necessary, but not only the profit. Business management would be much easier when insurance industry wasn't faced with constant changes. In this regard, the role of managerial economics is to predict and identify possible changes, advising management of insurance companies on how to respond to challenges in the context of a competitive market.