The Law on Compulsory Traffic Insurance, passed in August 2020, provides for a phased deregulation and liberalization of MTPL insurance tariffs over a period of six years, leading to a fully liberalized MTPL market.
Yet, both insurers and the market authority considered that MTPL free pricing would be premature, inducing a higher competitiveness in the market and possibly leading to fluctuations of MTPL prices with a negative impact on insurers' income.
A similar situation was encountered also in the other administrative entity of Bosnia and Herzegovina, Republika Srpska, where amendments to the Law on Traffic Compulsory Insurance from 2015, providing for a postponement of the liberalization process. The decision came following RS insurers' request which felt still unprepared to face the challenging process, both in capital and human resources terms.
[s|bosnia]
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