Insurance laws Serbia
Serbia's insurance sector is governed by a comprehensive legal and regulatory framework aimed at ensuring market stability, consumer protection, and alignment with international standards.
π Key Legislation
Insurance Law (Zakon o osiguranju)
Enacted in 2014 and effective from June 2015, this law regulates the establishment, operation, and supervision of insurance companies in Serbia It aligns with EU Directive 2009/138/EC (Solvency II), introducing
Separate licensing for life and non-life insurance companies
Minimum capital requirements: EUR 3.2 million for life insurance, EUR 2.2β3.2 million for non-life insurance, and EUR 3.2 million for reinsurance companies
Governance structures: Mandatory General Meeting, Supervisory Board, and Executive Board
Risk management and internal controls: Requirements for internal auditing and actuarial activities
Cross-border operations: Provisions for foreign insurance companies to operate in Serbia post-WTO accession Law on Compulsory Traffic Insurance
This law mandates specific insurance coverage for various modes of transport, including
Third-party liability insurance for motor vehicles
Passenger accident insurance for public transport Aircraft and boat insurance covering third-party liability and passenger accidents It also establishes the Guarantee Fund to compensate victims when the liable party is uninsured or unidentified
ποΈ Regulatory Authority
The National Bank of Serbia (NBS) supervises the insurance sector, ensurin:
Licensing and supervision of insurance companie.
Financial stability of the insurance marke.
ξ**Protection of policyholders' rights*.
π Market Structure
*Insurance Companies:ξMust be established as joint-stock companies with separate capital for life and non-life insurane.
*Insurance Intermediaries: Brokers and agents can represent multiple insurers, subject to NBS approvl.
*Cross-Border Operations: Foreign insurers can operate in Serbia through branches after WTO accession, with NBS licensig.
π§Ύ Consumer Protection
*Disclosure Obligations: Policyholders must disclose all material facts; failure may lead to contract annulment or premium adjustmets.
*Claims Processing: Insurers are required to handle claims promptly and faily.
*Data Protection: insurance companies must maintain confidentiality of policyholder informaton
π Alignment with International Standads
Serbia's insurance legislation aligns with EU regulations, particularly Solvency II to:
Enhance financial stabiliy.
Ensure consumer protectin.
Facilitate cross-border operatios
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