NORTH MACEDONIA: The Rulebook is to further harmonize Montenegrin market with EU insurance regulations

1 February 2023 —
The Council of the ISA (Insurance Supervision Agency), at the recent session adopted, among other things, the Rulebook on the management system in insurance companies. The Rulebook is to further harmonize Montenegrin regulations with EU regulations in the field of insurance, the ISA said.

The most significant innovation is a detailed description of the risk management system and function, where, among other things, the obligation of a company to assess capital needs, in addition to those determined by the Insurance Law, is at least once a year conduct an independent assessment of solvency risks.

The council also considered the results of the Montenegrin insurance sector's operations in 2022. The previous year was the best so far in terms of gross premiums, surpassing the results of the record-breaking year 2021. The preliminary data show a total gross premium of EUR 108.3 million in 2022, which represents an increase of 9.6%, or EUR 9.5 million more y-o-y. The non-life segment grew by 10.3% (EUR 8.1 million), as did the life segment - by 6.8% (EUR 1.4 million). The most common type of insurance on the Montenegrin market is motor vehicle liability insurance with a share of 36.6%, followed by life insurance with a share of 18.1%, accident insurance with a share of 10.6% and other property insurance with a share of 9.1% (total property insurance share is 12.6%) in the total market portfolio, the press-release said.