Serbia’s insurance industry delivered strong growth in the first quarter of 2026, with gross written premiums rising 11.6% year-on-year to RSD 50.2 billion (€428 million) as demand increased for property, voluntary health and comprehensive motor insurance. At the same time, foreign-owned insurers continued to account for the majority of sector assets and premium income.
According to the National Bank of Serbia, the combined assets of insurance and reinsurance companies reached RSD 455.8 billion (€3.88 billion), an increase of 6.4% from a year earlier. Industry capital climbed 9.4% to RSD 96.1 billion (€819 million), while technical reserves rose 4.1% to RSD 301 billion (€2.57 billion).
The pace of premium growth exceeded both consumer inflation and nominal economic expansion, reflecting higher demand for voluntary insurance products alongside increases in insured values. Based on first-quarter results, the market is operating at an annualised premium volume of approximately RSD 200.8 billion (€1.7 billion), although seasonal variations mean the final annual figure may differ.
Insurance penetration remains close to 2% of GDP, substantially below levels seen in most mature European markets. Annual insurance spending per capita is estimated at €250–€260, compared with approximately €1,200 in Slovenia, highlighting the gap in household wealth, financial-market development and long-term insurance participation.
Non-life business continues to dominate
Non-life insurance accounted for 82.9% of total premiums, generating approximately RSD 41.6 billion (€355 million) during the quarter, while life insurance represented 17.1%, equivalent to around RSD 8.6 billion (€73 million). The life insurance share remained unchanged from the first quarter of 2025, indicating that Serbia’s market continues to focus primarily on protection products rather than long-term savings and retirement solutions.
Motor third-party liability insurance remained the largest business line, representing 24.7% of total premiums. Insurers collected approximately RSD 12.4 billion (€106 million) from compulsory motor coverage, with premiums increasing 5.6% year-on-year. Growth in this mature segment continued to be driven mainly by changes in the number of registered vehicles, tariff adjustments and the composition of the insured fleet rather than a significant expansion in policyholders.
Property insurance records strongest gains
Property insurance strengthened its position as the second-largest segment, accounting for 19.3% of total premiums after expanding 17.6% year-on-year to approximately RSD 9.7 billion (€83 million). The increase reflects higher construction and replacement costs, growth in commercial and industrial assets, lender insurance requirements and rising awareness of operational, fire and weather-related risks.
Serbia’s continuing investment in transport infrastructure, energy projects, industrial facilities, logistics centres, hotels and EXPO developments is expanding the country’s insurable asset base. New projects require construction all-risk, erection all-risk, machinery breakdown, business interruption and property damage policies. Despite higher premium volumes, insurers continue to face challenges linked to underinsurance, particularly where older policies have not been updated to reflect rising reconstruction costs. Industrial facilities and warehouses insured using outdated valuations may no longer have adequate coverage limits.
As property portfolios expand, insurers are expected to rely increasingly on updated asset valuations, engineering assessments, fire-protection reviews and business interruption analyses. Climate-related exposure is also becoming more significant. Floods, storms, droughts, wildfires and extreme temperatures are increasing potential claims, making insurers more dependent on reinsurance capacity and pricing. International reinsurers are placing greater emphasis on catastrophe modelling, higher deductibles and stricter engineering requirements, potentially increasing the cost of insuring major industrial, infrastructure and energy projects.
Life insurance remains stable
Life insurance retained its 17.1% market share despite continued growth in premium volumes. The relatively modest share reflects competition from bank deposits and government securities, as well as household preference for more liquid financial assets over long-term insurance savings.
Although higher interest rates improve investment returns on insurers’ fixed-income portfolios, they also make deposits more attractive, increasing competition for life insurance products. As Serbia gradually aligns its regulatory framework with the EU Solvency II regime, life insurers are expected to place greater emphasis on asset-liability management and capital allocation against interest-rate, market, credit and policy-lapse risks.
Health insurance strengthens corporate demand
Voluntary health insurance generated approximately RSD 7.5 billion (€64 million) in premiums, representing 15% of the market after growing 12.9% year-on-year. The segment’s share increased slightly from 14.9% to 15%, supported by employers increasingly offering private healthcare benefits as part of compensation packages, particularly in technology, finance, professional services and larger industrial companies.
Private medical inflation continues to create underwriting challenges as healthcare costs, diagnostics, specialist services and pharmaceuticals increase. Insurers are responding through deductible structures, provider networks and benefit limits. The market remains concentrated, with the four largest insurers accounting for 69.2% of voluntary health premiums, giving larger companies stronger negotiating positions with healthcare providers and greater economies of scale in claims management and digital systems. Future growth is expected to depend increasingly on digital appointments, telemedicine, preventive healthcare, claims analytics and managed-care services alongside traditional insurance coverage.
Comprehensive motor insurance and accident cover expand
Comprehensive motor insurance (casco) accounted for 12.1% of total premiums, generating approximately RSD 6.1 billion (€52 million) after increasing 14.8% year-on-year. Growth reflects higher vehicle values, expanding leasing activity and rising repair costs associated with modern vehicles equipped with advanced driver-assistance systems, sensors and electronic components.
Repair costs continue to increase because of imported spare parts, specialised calibration requirements and labour expenses, prompting insurers to review pricing models and strengthen repair-network agreements. The market remains concentrated among newer passenger vehicles, leased fleets and corporate customers, while Serbia’s older imported vehicle fleet continues to have relatively low comprehensive insurance penetration.
Accident insurance recorded the strongest growth among major product categories, with premiums increasing 30.7% and market share rising from 2.4% to 2.9%, equivalent to approximately RSD 1.46 billion (€12 million). The category includes compulsory insurance covering public transport passengers and employee workplace injuries, as well as voluntary accident protection. Together, motor liability, property, life, voluntary health and casco insurance generated approximately RSD 44.3 billion, accounting for 88.2% of total market premiums. The remainder came from accident, travel, agricultural, liability, transport, credit and specialised commercial insurance products.
Capital base continues to strengthen
The industry’s RSD 455.8 billion asset base exceeded nine times quarterly premium income. Technical reserves represented around 66% of total assets, while capital accounted for approximately 21%. Capital expanded more rapidly than reserves, with the 9.4% increase partly reflecting slower reserve growth following settlement of a major property claim initially reported during the third quarter of 2024.
Premium growth alone does not determine profitability, as underwriting performance also depends on claims frequency, claims severity, reinsurance costs, acquisition expenses, operating costs and investment returns. The National Bank of Serbia’s reference interest rate of 5.75% continues to support returns on newly acquired government securities, which represent a significant share of insurers’ investment portfolios.
Higher yields improve recurring investment income but reduce the market value of existing fixed-income securities. Life insurers remain particularly sensitive because of the long duration of their liabilities, while non-life insurers must maintain liquidity for large claims. With RSD 301 billion in technical reserves, insurers remain significant institutional investors in Serbia’s financial system, providing stable domestic demand for government debt.
Investment diversification remains limited because Serbia’s corporate bond market, equity market and infrastructure investment instruments are relatively underdeveloped. Infrastructure bonds, renewable energy debt and covered bonds could eventually provide additional long-term investment opportunities subject to regulatory approval and appropriate project structures.
Foreign-owned groups dominate market structure
Market concentration remained high during the first quarter. Dunav Osiguranje, Generali, DDOR, Wiener Städtische and Triglav ranked as the five largest insurers by premium income and also controlled 76.2% of total sector assets. Dunav Osiguranje and Generali held leading positions in both life and non-life insurance. While Dunav remains the largest domestically controlled insurer, Generali, DDOR, Wiener Städtische and Triglav link the Serbian market to major Italian, Austrian and Slovenian insurance groups.
At the end of March 2026, Serbia had 20 licensed insurance and reinsurance companies, unchanged from a year earlier. The market consisted of 16 direct insurers and four reinsurers, including four life insurers, six non-life insurers and six companies operating in both segments. Foreign investors held majority ownership in 15 of the 20 licensed companies. These insurers generated 83.3% of life insurance premiums and 61.2% of non-life premiums, controlled 68.4% of sector assets and employed 66.2% of the industry’s workforce.
Foreign ownership provides access to international capital, reinsurance programmes, actuarial expertise, digital platforms and product development capabilities, while strategic decisions on capital allocation and risk management are typically made within regional insurance groups. The current ownership structure suggests future consolidation is more likely to occur through acquisitions of existing portfolios than through new market entrants. Smaller insurers are expected to compete by specialising in niche markets, expanding bancassurance partnerships, developing commercial expertise or investing in digital distribution.
Bancassurance remains an important sales channel for life insurance, loan protection, property and motor products through mortgage, leasing and consumer lending relationships. Digital distribution is expected to expand primarily in standardised products including travel insurance, motor assistance, household cover and selected health policies, while large commercial, infrastructure and energy risks will continue to rely on brokers, surveyors and specialist underwriting teams.
Infrastructure development, rising private healthcare demand, industrial investment, climate-related risks and continued alignment with EU insurance regulation are expected to shape future market growth. With RSD 96.1 billion in capital, RSD 301 billion in technical reserves and an annualised premium base approaching €1.7 billion, the insurance sector remains positioned to expand its role in corporate risk management and long-term domestic capital formation.
