The proposal of the new Serbian Insurance Law
On 5 December 2014 the proposal of the new Serbian Insurance law has been put in the Parliament procedure by the National Bank of
Serbia.
The proclaimed aims of the proposal of the Insurance law are to ensure better protection of the users of financial services and
improve the insurance undertakings supervision.
In addition the proposed text, if adopted, shall bring a long awaited overhaul in the Serbian regulatory environment, having in mind
that previous regulatory amendments were more of formalistic nature. In that regard the proposed Law represents a comprehensive
text, however some important points have been left to be resolved by the delegated legislation the adoption of which mainly falls
within the jurisdiction of the National Bank of Serbia (the NBS).
In our previous newsletter (July 2014) we have analysed a step by step harmonisation of the domestic insurance market with the EU
law. This approach is now being incorporated in the proposed Law with the result that the complete opening of domestic insurance
market for foreign licensed insurance undertakings being prolonged until Serbia membership in the EU and WTO.
Also the separation between life and non life insurances businesses is implemented in the text. As concerns the existing composite
insurance companies these shall be permitted to maintain the status in accordance with the Directive 2002/83/EC provided that they
harmonise with the new law in the transition period.
The particular classes of life and non life insurance have been aligned to the respective EU Directives (Directive 2002/83/EC and
Directive 73/239/EEC respectively) with regards to the type of risks, specification of the insurance coverage which shall in the future
reflect on the insurance undertaking operating licenses.
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