NBS: Reforms produce desired results in insurance sector

The insurance market in Serbia is well capitalized, has quality risk management mechanisms and is liquid, solvent and profitable, following the harmonization of operations of all market participants with the standards envisaged in the regulations adopted in 2014 and 2015.

As reported by the National Bank of Serbia, a comprehensive and complex job of harmonizing operations of all market participants with the Law on Insurance, adopted in late 2014, and the by-laws adopted in the first half of 2015 was completed in 2016.

– It can be said that the desired result of creating a modernized and stable insurance market, better adjusted to citizens' needs, has been fully achieved – the NBS estimates.

The procedure of harmonization with new regulations required insurance and reinsurance companies to carry out thorough reforms of internal organization, manner of operations, relationship towards clients, but also to meet a range of quantitative criteria in financial operations.

The NBS points out that they've developed new mechanisms for supervising insurance, oriented towards the relationship with clients in the most general sense, emphasizing the right of pre-contract information, defined by the new regulations. This right enables each potential client to consider all important elements before signing an insurance contract.

– Socially responsible insurance supervision of the kind we've built has one basic thread running through all its activities – to make its results visible in various aspects of people's everyday lives. Such results have been made primarily in the field of voluntary and purposeful nature of insurance, which we've achieved by eliminating occurrences such as charging for insurance with bus tickets or enforced adding of insurance items to utility bills – the press release says.

The National Bank of Serbia says that it will continue carrying out supervision over insurance activities in the future as well.

Narodna banka Srbije Beograd

NBS

insurance market in Serbia

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Law on Insurance