INSURANCE SECTOR IN THE REPUBLIC OF NORTH MACEDONIA AND POSIBILITIES OF IMPLEMETTION OF SOLVENCY 2 MODEL

Abstract

The economic importance of insurance is to enable families and companies to manage risk. Diversification and risk transfer are the most important factors in creating added value in insurance. The insurance sector in Macedonia is characterized by a small share in the financial system of about 3.3%, dynamic development and challenges for harmonization of domestic regulation and supervision of insurance with the regulation and practice of the European Union.

It is characterized by dynamic development and challenges for harmonization of the regulation and supervision of the insurance with the practice and regulation with the regulation that is practiced in the countries of the European Union. Insurance is gaining momentum in all spheres of human activity, increasing the number of participants in the insurance sector, ie the number of insurance companies as its main pillar. In the last decade, the insurance industry has faced various important changes, such as increasing liberalization, deregulation, financial and economic crisis, etc. The purpose of this paper will be to collect information and analyze the current situation of the business climate of the insurance industry in general in the EU members and with special reference in Macedonia, in order to encourage insurance companies to think and start preparations for partial implementation of the Solvency 2 project, which requires more time in preparation and increase of financial and human capacities. The low level of insurance penetration in the Republic of Macedonia, leads to significant space and opportunities for future growth.