IZAZOVI TRŽIŠTA OSIGURANJA AUTOODGOVORNOSTI U REPUBLICI SRPSKOJ
CHALLENGES OF THE AUTOMOBILE LIABILITY INSURANCE MARKET IN THE REPUBLIC OF SRPSKA

Summary/Abstract: In this paper, the authors deal with the research of compulsory automobile liability insurance. Although the Insurance Agency in the Republic of Srpska has prescribed insurance tariffs, according to which the prices of policies, i.e. insurance in all insurance companies are the same, in practice we have non-compliance with decisions and agreements, i.e. differences in prices. This results in liquidity problems for insurance companies. The aim of this paper is to find solutions that would overcome the problem of non-compliance with the decisions of the Insurance Agencies in the Republic of Srpska, i.e. the agreements of insurance companies, as well as unfair competition in the field of automobile insurance.The authors believe that the introduction of liberalization of the automobile liability market would significantly alleviate this problem. In order to avoid the negative implications of this solution, it is necessary to introduce phased processes for the transition to this model, which would lead to the regulation of the insurance market.Prices would be formed depending on the risks and the companies.This would ensure a correct and fair competitive offer, and clients would assess which offer suits them best.In doing so, it is necessary to harmonize, two very opposite goals; on the one hand to harmonize the purchasing power of clients, and on the other hand, to ensure the safety of both clients and the insurance company.

• Details
• Contents