On 5 September, the Executive Board of the Association of Insurance Companies of the Republika Srpska (RS) has requested the RS’s Insurance Agency to increase MTPL insurance premiums by 1.5%, to secure funding for the Protection Fund's central electronic records system.

According to Indikator.ba, the Insurance Agency stated it is too early to assess the justification for the increase and reminded that the last premium hike occurred in March last year, raising rates by 18%.

The Executive Board explained that the new increase is necessary to ensure stable financing for the creation and operation of the central electronic records, as mandated by amendments to the Law on Compulsory Traffic Insurance.

Auto liability insurance makes up about a third of vehicle registration costs in Srpska. From January to April this year, 40.5 million KM was paid in damages, with over 18 million KM related to auto liability claims.