Regulating socially-owned capital in insurance companies in the Republic of Serbia

Abstract

Socially-owned capital, as a specificity of the Socialist Federative Republic of Yugoslavia, survived in some insurance companies in Serbia in the first half of the twenty-first century. The possession of socially-owned capital in the total capital structure hindered the operation of insurance companies and practically placed them in an unequal position in relation to their direct competitors and other participants in the financial market. The aforementioned situation prompted the Government to propose amendments to the Insurance Law, which systematically and permanently regulates the issue of socially-owned capital in insurance companies.