Insurance market in FBiH at a turning point

SARAJEVO, (Patria) - Leading insurance companies operating in the Federation of BiH have signed a joint statement regarding the application of the Law on Mandatory Insurance in traffic, with the aim of ensuring full implementation of the provisions stipulated by the law and accompanying bylaws, especially the conditions and joint premium tariff and price list for motor third-party liability insurance, which have been in effect since 31.10.2020.

The insurance market in BiH, specifically the Federation of BiH, is at a turning point, marking the beginning of the liberalization of mandatory motor third-party liability insurance. Aware of their responsibility towards citizens, their policyholders and clients, and the need to fully protect the interests of injured parties and funds for damage payments, leading insurance companies in BiH have expressed a high degree of agreement regarding the cessation of any form of benefits and refunds to policyholders in connection with concluded insurance contracts and collected premiums.

Operating within the Association of Insurance Companies in FBiH and through their own activities, insurance companies will continue to make continuous efforts to raise citizens' awareness of the need for insurance of individual property and personal insurance.

The goal of the insurance industry is for Bosnia and Herzegovina to move away from the European bottom in terms of premium income per capita, which at the end of 2019 was only 112 euros, and to join countries like Croatia or Slovenia in the coming years, where the average insurance premium per capita is three to ten times higher than in BiH.

The signed statement is one of the activities undertaken by the insurance companies themselves to preserve the credibility of the entire sector and enhance the value of the insurance profession as a foundation for the economic development of any society. Insurance companies also hereby call on insurance service users, policyholders, and all citizens to report any suspicion of violation of legal and bylaw provisions to the competent Insurance Supervision Agency in FBiH.

In this context, insurance companies give full support to the market regulator, the Insurance Supervision Agency in FBiH, in order to achieve optimal results in the application of the provisions of the Law on Mandatory Insurance in Traffic and to ensure the greatest possible stability of the insurance market, and through this segment, protect the rights of policyholders.