Situation and prospects of life insurance market in the Republic of Serbia

Abstract

In the current business environment, the insurance market in Serbia records a trend of positive, but relatively slow growth. Life insurance market in Serbia, in recent years, shows steady progress, but still lags significantly compared to developed European countries. Poor development of life insurance sector is a direct consequence of the lack of economic development, underdeveloped financial markets, high unemployment rates and inadequate economic reforms. A significant problem is poor education and minimal knowledge of the potential of this type of insurance. The paper is thematically divided into two parts. The aim of this paper is to present the key elements and indicators of life insurance market in Serbia. Emphasis is placed on the presentation of the situation in the region and on the comparison of Serbia with neighboring countries in terms of the volume of life insurance premium. The second part of the paper shows the perspectives of further development of this specific market.