Position of insurance in the financial sector of the Republic of Serbia

Abstract

The need for insurance dates back to the distant past with the main goal to avoid risks and to share the costs in case of its realization. A lot of time has passed from unorganized to institutionalized insurance. Today, insurance plays a significant role in the financial system, which is different depending on the achieved level of economic development. The subject of the analysis is the development of insurance and its position in the financial sector of the Republic of Serbia in the last seven years. In this sense were analyzed the movement of balance sheet amounts, capital and the number of employees in financial institutions and its participation in the financial sector. The data indicates an increasingly important role of insurance, especially when it comes to employment. Not only insurance, but also the entire financial sector in the observed period achieves positive tendencies in all considered categories. However, regardless of the positive trend, the development of insurance is still modest, so its full potential and significance for the financial system will be realized in the future.