LEGAL FRAMEWORK FOR INSURANCE COMPANIES’ OPERATIONS

Expert contributions
Autor: Mirjana Kneževic PhD

Summary: The adoption of the Insurance Law, along with other relevant by-laws, created the legal framework for the operation of insurance companies, based on international practice. This Law was passed within the process of harmonization of domestic legislation with the European Union’s regulations, hence it contains the solutions of the modern, European laws and the EU law. The issue of supervision was regulated by a large number of the European Union Directives. Starting from 2004, when it was entrusted with the supervision of insurance operations, the National Bank of Serbia, in accordance with its rights granted by the Law, passed a large number of by-laws in this field, with a view to enhancing the concerned process and bringing it closer to the modern supervisory systems, in line with the international standards and trends. There is no need to particularly emphasize the importance of insurance supervision, since the necessity of this type of control is obvious for several reasons, first and foremost due to the nature of insurance activity, protection of interests of insurance users, prevention of unfair competition in this field, as well as for safety and protection of common interests in conducting this activity important for safeguarding and wellbeing of people and property. According to the Insurance Law the supervision over the establishment and operation of insurance companies is within the competence of the National Bank of Serbia.

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