Reform of the insurance services market – Priority of the Finance Ministry for the following 18 months

The Minister of finance and economy of the Government of the Republic of Serbia, Mr. Bozidar Djelic, declared that the reform of the insurance services market represents the Ministry’s major priority for the following 18 months. This reform will be carried out through the adoption of a new Law on Insurance, along with the analysis of the market situation, the introduction of general supervision and the privatization of a certain number of Insurance companies.

On the occasion of a round-table debate “Insurance transformation in Serbia” organized by the magazine “Ekonomist”, Mr. Djelic said that the insurance services market – with it’s 1-2% participation to the GNP, should become the key economy branch – providing for a long-term capital and an increase of the corporate management.

The Minister also said that the draft law provides for a new level for the limit necessary for the insurance companies founding, and added that the Finance Ministry will reinforce the supervision over the insurance companies functioning through the creation of the Insurance companies supervising Agency as an independent body within the Ministry.

According to Mr. Djelic’s terms, besides the adoption of the Law on Insurance and the application and enforcement of the Law on Accounting, to assure the development of the insurance services market, it will necessary to adopt the laws on voluntary pension insurance, on the investment fund and on valuable papers.