Insurance
INSURANCE
WHY INVEST?
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The Republic of Srpska has established an appropriate normative and legal framework in the insurance sector, harmonized to a significant extent with the regulations of the European Union.
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It has been established a functioning regulatory and supervisory body (Republic of Srpska Insurance Agency).
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It is planned to create systemic presumptions for the development of new insurance services, adopt tax incentive legislation for insurance services (life and pension insurance), and further develop local capital market in the coming period.
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It has seen continued growth of the insurance sector’s share in total assets of the financial sector.
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Quality improvement of sector staff structure has been noted.
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By upgrading the standard of living and raising awareness of natural persons and legal entities of the need for protection from the undesired and unforeseeable occurrences, and bearing in mind the low share of voluntary insurance in total insurance premium, there is market potential for the introduction of new insurance types and wider promotion of the existing.
INVESTMENT OPPORTUNITIES
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A low share of property insurance against fire and natural forces, insurance of other damage to property and insurance of land vehicles other than rail vehicles, in the structure of the calculated premium of insurance companies, and a low share of life insurance in total insurance indicate the segments with a significant growth potential.
Investments are possible through the following:
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Capital increase of insurance companies,
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Greenfield investments.
THEY HAVE ALREADY INVESTED
Besides local investors, the insurance sector has also attracted the following foreign investors:
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GRAZER WECHSELSEITIGE VERSICHERUNG A.G. Vienna (Grawe osiguranje a.d. Banja Luka),
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VIENNA INSURANCE GROUP AG (Wiener osiguranje Vienna Insurance Group a.d. Banja Luka),
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Triglav INT. D.D. Ljubljana (Triglav osiguranje a.d. Banja Luka),
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DUNAV STOCKBROKER AD BELGRADE and DUNAV OSIGURANJE Belgrade (Dunav osiguranje a.d. Banja Luka).
AVAILABLE ADDITIONAL MATERIALS FOR SECTOR ANALYSIS
Insurance companies
There are currently 14 insurance companies operating in Republika Srpska.
The following is a list of insurance companies in the Republika Srpska that have a work permit issued by the Insurance Agency of the Republika Srpska:
Useful links
VOLUNTARY PENSION INSURANCE
WHY INVEST?
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New forms of insurance need to be introduced in the Republic of Srpska in order to offer additional income in the old age.
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There is a large number of potential service beneficiaries of voluntary pension funds (farmers, the self-employed, income-generating population not covered by the compulsory pension insurance system, and population covered by the compulsory pension insurance system of intergenerational solidarity wishing to diversify their sources of income in the old age).
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Legal regulations in the field of voluntary pension insurance are governed by the Law on Voluntary Pension Funds and Pension Plans (Official Gazette of the Republic of Srpska, no. 13/09, 107/19).
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The Law on Income Tax (Official Gazette of the Republic of Srpska, no. 60/15, 5/16, 66/18, 105/19, 123/20, 49/21, 119/21) has introduced a tax facility for citizens, in the form of tax base reduction by the amount of pension contribution paid for a voluntary pension insurance of up to BAM 1,200 per year.
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Law on Contributions (Official Gazette of the Republic of Srpska, no. 114/17, 112/19, 49/21, 119/21) set forth that the contributions need not be paid on pension contribution revenues of up to BAM 1,200 per year disbursed to a contributory by a contribution payer, in accordance with the law governing voluntary pension funds in the Republic of Srpska.
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Joint action is possible with the Investment Development Bank of the Republic of Srpska, and with the Pension Reserve Fund of the Republic of Srpska.
INVESTMENT OPPORTUNITIES
According to the data of the Republic of Srpska Statistics Institute for 2021, there are 282,702 employees in the Republic of Srpska, of which 30% in agricultural activities. According to the data of the Pension and Disability Insurance Fund, a small number of farmers and the self-employed is registered for the compulsory pension insurance. Besides, a significant share of population fit for work, employed in other activities, generates income but is not covered by the compulsory pension insurance, which produces the need for alternative provision of additional sources of income in the old age.
THEY HAVE ALREADY INVESTED
The first voluntary pension fund in the Republic of Srpska European Voluntary Pension Fund - EPF was established in 2017..
EPF shareholders are:
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SKUPNA POKOJNINSKA DRUŽBA d.d. Ljubljana
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PENSION RESERVE FUND OF THE REPUBLIC OF SRPSKA a.d. Banja Luka
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EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT- EBRD
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Enterprise Expansion Fund- ENEF.
AVAILABLE ADDITIONAL MATERIALS FOR SECTOR ANALYSIS
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Republic of Srpska Pension System Reform Strategy
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Study: Management of Stocks of the Republic of Srpska Pension and Disability Insurance Fund Portfolio
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Study: Voluntary Pension Funds in the Republic of Srpska: Needs and Perspectives
Banja Luka Stock Exchange
Internet portal of Banja Luka Stock Exchange is a reliable service which provides information about securities (stocks, bonds, treasury bills), their issuers, financial statements of issuers, audit reports of issuers, information about dividend payments, general meetings of joint stock companies, ownership and management structures, as well as much more information relevant for investing.
By providing comprehensive information about the operation of securities issuers and investment funds on the single portal www.blberza.com, the capital market of the Republic of Srpska is one of the most organised markets in the region in terms of availability of market information necessary for investment decision-making.
