SPREMNOST BOSNE I HERCEGOVINE NA UVOĐENJE EVROPSKE DIREKTIVE SOLVENCY II
HERZEGOVINA’S READINESS TO IMPLEMENT THE EUROPEAN SOLVENCY II DIRECTIVE

Summary/Abstract: The European Union introduced the Solvency II Directive - Directive 2009/138/EC of the European Parliament and of the Council on the taking-up and pursuit of the business of Insurance and Reinsurance, to ensure the financial stability of insurance companies, by setting strict requirements for existing regulations. The implementation of the new directive in the countries of the European Union began in early 2016. In countries for which the implementation of this Directive is not binding, because they are not members of the European Union, it is necessary to harmonize national regulations and laws governing the supervision and management of insurance in accordance with Solvency II. Bosnia and Herzegovina, as a signatory to the Stabilization and Association must EU, must introduce European Union regulations into national legislation. Introducing this regulation in Bosnia and Herzegovina will imply major changes in the financial, organizational, and legal aspects of insurance companies. The new regulation requires new rules in the form of a solvency margin, a completely different holistic approach to risk management and transfer, investments by insurance companies, and the introduction of key functions. In the new legal framework, key office holders are subject to strict regulations regarding professional qualifications and personal reliability. Adequate preparation of domestic insurance companies for the application of Sbyssary, by the prescribed guidelines. In this paper, we pointed out the most important parts of Solvency II, preparatory actions for the introduction of this directive into national legislation, harmonization of BiH regulating ions with European ones, steps that Bosnia and Herzegovina must take to fully implement this directive into its legislation.

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