УЛОГА РЕГУЛАТОРА У КРЕИРАЊУ ТРЖИШТА ОСИГУРАЊА РЕПУБЛИКЕ СРПСКЕ
THE REGULATORY ROLE IN CREATING REPUBLIC OF SRPSKA INSURANCE MARKET

Summary/Abstract: Instability and undevelopment of insurance sector is observed in Republic of Srpska as well as in Bosnia and Herzegovina, as a result of weakness in the management of insurance companies and lack of appropriate and principled control. Difficult situation of insurance in our country is caused by a number of factors, such as unsatisfying economic development, slow process of economic reforms and high unemployment rate. The insurance companies operate in undeveloped financial market with unfair competition, and great problem is lack of professional staff. High share of automobile liability insurance premiums, low participation of life insurance premiums and high percentage of premium (average 43%) which is used to cover insurance costs testify about a low level of insurance development. In developed countries, insurance sector holds the second place by importance at financial markets and impact on the economic development, immediately after banking. The importance of insurance stems from the size of insurance companies? capital and the jobs they perform as institutional investors. In order to meet conditions for joining the European Union, it will be necessary if not to equalize, at least to bring closer insurance sector in our country to the level of development of world insurance. Continuation of the article leads to the conclusion that consistent implementation of legislation and strengthening supervision function is crucial for the development of financial market, as well as the insurance sector. Accordingly, we should proceed harmonization of our legislation with precisely defined responsibilities in the field of insurance supervision by European standards.

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