The first half of 2013 also brought for the Bosnian market a series of legislative changes, which in part proved unsatisfactory or even worrisome for the insurance companies. Probably the most disputed change is the new Law on Amendments to the Law on the fire and fire fighting in the Federation of Bosnia and Herzegovina. Adopted by the FBiH legislative chamber in a unilateral step, without considering the technical argument of the industry, the new Law provides that insurance companies lie under the obligation to pay a parafiscal tax of 6% of the premiums collected for the "fire and natural perils" insurance line and 1% from the functional insurance premiums, which relates to motor insurance. In addition, insurers have to perform a series of operations by which they make sure that the property meets the fire protection requirements. The local press quotes a number of insurance professionals according to whom, if applied in the current adopted form, the new Law will jeopardize the insurers' financial strength. Moreover, once similar provisions are not applied in Republica Srpska, the insurance market coherence will be significantly affected, insurers domiciled in the two administrative entities which form Bosnia and Herzegovina not benefitting from a level-playing ground on the national market. Also, the adoption of the new Law ignores the legal provisions concerning the legal harmonization among the two administrative entities of BiH, by that being unconstitutional. For the future months it is expected that insurers, through the agency of their professional union, will appeal to the Constitutional Court the enactment of this Law.
Access www.xprimm.com and download the 1H2013 Bosnian insurance market statistics.
BiH insurance market indicators (FBiH and RS insurance markets, added-up):
- Market portfolio - GWP/Claims/Growth rates
- Rankings - Total/life/non-life (GWP/Claims/Market shares/Growth rates)
- Market portfolio - GWP/Claims/Growth rates
- Rankings - Total/life/non-life (GWP/Claims/Market shares/Growth rates)
- Market portfolio - GWP/Claims/Growth rates
- Rankings - Total/life/non-life (GWP/Claims/Market shares/Growth rates)
4942 views