ACTUAL STATE AND PERSPECTIVE OF MTPL INSURANCE MARKET IN BiH

1. ACTUAL STATE AND PERSPECTIVE OF MTPL INSURANCE MARKET IN BiH The International Insurance Forum Insurance Agency of Bosnia and Herzegovina Samir Omerhodžić • 3-4 March, 2013 • Istanbul

2. The International Insurance Forum • MTPL INSURANCE MARKET IN BiH BiH INSURANCE SECTOR • Institutions: • Insurance Agency of BiH • FBiH and RS Insurance Supervisory Agencies • BiH Green Card Bureau • FBiH and RS Insurance Protection Funds • FBiH and RS Association of Insurance Companies • BiH Actuarial Association • Actuarial Association in RS • 25 Insurance Companies • 14 with the seat in FBiH • 11 with the seat in RS • 1 Reinsurance Company • Insurance Intermediaries (agents and brokers)

3. The International Insurance Forum • MTPL INSURANCE MARKET IN BiH REVIEWOF MACROECONOMICINDICATORSIN BiH Macroeconomic indicators in BiH (in €)

4. The International Insurance Forum • MTPL INSURANCE MARKET IN BiH STRUCTURE OF THE BiH FINANCIAL SERVICES SECTOR Structure of the BiH Financial Services Sector (in €)

5. The International Insurance Forum • MTPL INSURANCE MARKET IN BiH OWNERSHIP STRUCTURE Ownership structure and types of insurance operations of BiH insurance companies in 2012

6. The International Insurance Forum • MTPL INSURANCE MARKET IN BiH TOTAL PREMIUM IN BIH AND THE ENTITIES Total premium in Bosnia and Herzegovina and the Entities (in €)

7. The International Insurance Forum • MTPL INSURANCE MARKET IN BiH TOTAL PREMIUM IN LIFE AND NON LIFE INSURANCE IN BiH Total premium in life and nonlife insurance in Bosnia and Herzegovina (in €)

8. The International Insurance Forum • MTPL INSURANCE MARKET IN BiH PREMIUMS PER INSURANCE TYPE IN BiH Premiums per insurance type in BiH (in €)

9. The International Insurance Forum • MTPL INSURANCE MARKET IN BiH • Percentage of the various types of the insurance in total premium in BiH for 2009, 2010, 2011 and 2012

10. The International Insurance Forum • MTPL INSURANCE MARKET IN BiH PREMIUMS PER INSURANCE TYPE OF INSURANCE COMPANIES IN FBiH WITH BRANCHES IN RS Premiums per insurance type of FBiH insurance companies‘ branches in RS (in €)

11. The International Insurance Forum • MTPL INSURANCE MARKET IN BiH PREMIUMS PER INSURANCE TYPE OF INSURANCE COMPANIES IN RS WITH BRANCHES IN FBiH Premiums per insurance type of RS insurance companies‘ branches in FBiH (in €)

12. The International Insurance Forum • MTPL INSURANCE MARKET IN BiH SHARE OF PREMIUM IN BRANCHES IN PREMIUM OF ENTITIES • Share of premium in branches in premium of Entities (in €)

13. The International Insurance Forum • MTPL INSURANCE MARKET IN BiH SHARE OF MTPL INSURANCE PER COUNTRIES IN CEE, SEE AND CIS

14. The International Insurance Forum • MTPL INSURANCE MARKET IN BiH SHARE OF LIFE AND NONLIFE INSURANCE PER COUNTRIES IN CEE, SEE AND CIS

15. The International Insurance Forum • MTPL INSURANCE MARKET IN BiH COMPARISON OF INDICATORS OF SOME EUROPEAN COUNTRIES AND BiH Comparison of indicators of some European countries and BiH (in $)

16. The International Insurance Forum • MTPL INSURANCE MARKET IN BiH Ratio of the amount of premium and GDP expressed in percents for some European countries and BiH for 2009, 2010 and 2011

17. The International Insurance Forum • MTPL INSURANCE MARKET IN BiH • Premiums per capita for some European countries and BiH • for 2009, 2010 and 2011

18. The International Insurance Forum • MTPL INSURANCE MARKET IN BiH CLAIMS PAID PER INSURANCE TYPE IN BiH Claims paid per insurance type in BiH (in €)

19. The International Insurance Forum • MTPL INSURANCE MARKET IN BiH

20. The International Insurance Forum • MTPL INSURANCE MARKET IN BiH IMMATERIAL CLAIMS PAID IN BiH Immaterial claims in BiH (in €) Immaterial claims paid by insurance companies (in €)

21. The International Insurance Forum • MTPL INSURANCE MARKET IN BiH HHI INDEX FOR THE MARKET OF LIFE INSURANCE HHI index for the market of life insurance in Bosnia and Herzegovina

22. The International Insurance Forum • MTPL INSURANCE MARKET IN BiH HHI INDEX FOR THE MARKET OF NONLIFE INSURANCE • HHI index for the market of nonlife insurance in Bosnia and Herzegovina

23. The International Insurance Forum • MTPL INSURANCE MARKET IN BiH TWINNING PROJECT • Twinning Project EU Suport for Sustainable Capacity Building of the Insurance Agency of Bosnia and Herzegovina and the FBiH and RS Insurance Supervisory Agencies implemented by Bulgarian Financial Supervision Commission from april 2010 to april 2012 • Proposal for framework of institutions for the purposes of obligatory Motor Third Party Liability insurance in Bosnia and Herzegovina in line with the prevailing best practice in EEA: • Single Compensation Body • Information Centre • Protection (Gurantee) Fund at the BiH Green Card Bureau.

24. The International Insurance Forum • MTPL INSURANCE MARKET IN BiH REASONS BiH Green Card Bureau is recognised as a representative one for BiH and is a member of the Council of Bureau - fulfils the requirements to be independent and self regulating. Cost efficiency – no financial resources will be needed to establish number of different institutions (units) at Entities and State level and to provide expenses for their administrative capacity. Single information system needs to be in place, respectively one project needs to be financed and upgraded.

25. The International Insurance Forum • MTPL INSURANCE MARKET IN BiH LIBERALIZING MTPL INSURANCE MARKET • FIRST Initiative,The World Bank • The main objectives of the project are: • to assist the Insurance Supervisory Agency of Federation of BiH (ISAF) and the Insurance Agency of Republic of Srpska (ISRS) and Insurance Agency of BiH (IABiH) in the liberalization of the MTPL insurance market in Bosnia and Herzegovina; • to develop the regulatory framework and technical tools necessary for actuarially sound setting of premium rates and technical reserves for MTPL insurance; • to ensure that the proposed regulatory framework for the MTPL insurance market is in compliance with the EU MPTL insurance legislation, specifically with the commitments of Stabilization and Association Agreement with European Union and that it properly accounts for the best international practices in liberalizing the MTPL market.

26. The International Insurance Forum • MTPL INSURANCE MARKET IN BiH THANK YOU FOR YOUR ATTENTION!