MTPL tarrifs' liberalization in Bosnia & Herzegovina postponed

16 September 2021 — Daniela GHETU
Government of the Federation of Bosnia and Herzegovina (FBiH) approved an amendment to the Law on Compulsory Traffic Insurance, which extends the use of the common tariff by one year (until end of October 2023), while full tariffs liberalization was pushed until November 1, 2026, wrote

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.


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