Bosnia and Herzegovina: Financial Sector Assessment Program - Insurance Sector—Technical Note
IMF Staff Country Reports, August 3, 2015
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- Bosnia and Herzegovina: Financial Sector Assessment Program - Insurance Sector—Technical Note
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Bibliographic details
- Published: August 3, 2015
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513566405.002
Summary and scope
- Publication date: August 3, 2015
- Pages: 108
- Volume: 2015
- Issue: 215
- Series: Country Report No. 2015/215
- DOI: https://doi.org/10.5089/9781513566405.002
- Stock No: 1BIHEA2015005
- ISBN: 9781513566405
- ISSN: 1934-7685
- This Technical Note discusses key findings and recommendations of the assessment on the Insurance Sector for Bosnia and Herzegovina (BiH).
Key findings: solvency and market concentration
- 10 insurance companies, accounting for 40 percent of the nonlife market, have low solvency margins and may require supervisory action in the near future.
- The assessment identifies solvency risk concentrated in a subset of market participants, implying potential systemic implications for the nonlife segment.
Key findings: Motor Third Party Liability (TPL) insurance
- Motor Third Party Liability insurance remains under pressure.
- Market participants are not always compliant with the statutory tariff, contributing to pressure in the TPL market.
Regulatory and supervisory recommendations
- It is expected that the Insurance Agency of Bosnia and Herzegovina will enhance the harmonization of entity-level regulations within BiH as well as with the European Union insurance directives.
- The Technical Note implies supervisory actions may be required for undercapitalized insurers to address low solvency margins.
Subject classification and keywords
- Subject: Auditing, Financial institutions, Financial sector policy and analysis, Insurance, Insurance companies, Internal audit, Public financial management (PFM), Solvency
- Keywords: Auditing, business plan, CR, Global, holding company, Insurance, Insurance companies, insurance premium, Internal audit, ISCR, joint stock, liability insurance, life insurance, life insurer, line of business, nonlife insurance product, nonlife insurer, RS-ISA resource, Solvency, Standard and Poor's, terms and conditions, unearned premium
International Monetary Fund. Monetary and Capital Markets Department "Bosnia and Herzegovina: Financial Sector Assessment Program - Insurance Sector—Technical Note", IMF Staff Country Reports 2015, 215 (2015).