Serbia’s insurance industry recorded RSD 104.3 billion (€889 million) in gross written premiums during the first half of 2026, while preparations for regulatory changes aligned with European Union standards are progressing. The sector’s expansion was accompanied by increases in assets, capital and technical reserves, as foreign-controlled insurers maintained their dominant position in the market.
- European Insurance Groups Maintain Market Dominance
- Health and Motor Policies Lead Premium Expansion
- New Insurance Legislation to Align Serbia With EU Standards
- Insurance Distribution Links Banks and Leasing Companies to the Sector
- Capital Requirements and Underwriting Performance Shape Market Development
According to the National Bank of Serbia (NBS) second-quarter insurance report, published on October 9, gross written premiums increased by 6.9% year-on-year. Total industry assets rose by 3.4% to RSD 455.7 billion (€3.88 billion), while capital increased by 1.8% to RSD 83.9 billion (€714 million).
Technical reserves, which cover expected insurance obligations, reached RSD 307.9 billion (€2.62 billion), representing an annual increase of 3.6%. The forthcoming transition towards the EU’s Solvency II framework is expected to affect the regulatory environment for insurers, including capital requirements, risk management, investment portfolios and the economics of potential acquisitions.
European Insurance Groups Maintain Market Dominance
Foreign-controlled companies held 68.2% of Serbia’s insurance-sector assets at the end of June. Their position was particularly strong in life insurance, where foreign-owned insurers generated 83.6% of premiums. Investors from Austria, Slovenia, Italy, the Netherlands and other European countries maintain substantial positions in the market, linking Serbia’s insurance industry to international financial groups and their underwriting, reinsurance and investment capabilities.
Serbia had 20 insurance and reinsurance companies operating at the end of June, unchanged from the same period a year earlier. The industry employed approximately 11,416 people, while the five largest insurers generated 73.2% of total premiums. Dunav Osiguranje, Generali, DDOR, Wiener Städtische and Triglav retained the leading positions in total premium income. The concentration of business among major insurers could become more significant as compliance and capital-management requirements evolve. Smaller companies face the need to invest in technology, develop specialised insurance products, improve distribution efficiency and secure affordable reinsurance.
Health and Motor Policies Lead Premium Expansion
Non-life insurance accounted for 83% of total premiums in the first half of 2026, with life insurance making up the remaining 17%. However, life insurance premiums grew faster, increasing 11.4% year-on-year, compared with 6% growth in non-life insurance. Voluntary health insurance premiums rose 11.5%, lifting the segment’s share of the overall market to 12.8%. Three insurers controlled 61.8% of voluntary health insurance, a segment supported by corporate employee-benefit programmes and demand for private medical services.
Motor insurance also recorded growth. Premiums from comprehensive vehicle insurance, commonly known as casco, increased 12.9%, while compulsory motor liability premiums rose 4.6%. Property insurance premiums advanced by just 0.9%, considerably less than the growth recorded in several other segments. The category covers risks associated with assets such as industrial facilities, commercial buildings and infrastructure.
The differences in premium growth reflect varying demand across the market, with health, motor and life insurance expanding at different rates from traditional property coverage. Insurers seeking to broaden their business are operating across both retail products and specialised coverage for corporate and industrial clients.
New Insurance Legislation to Align Serbia With EU Standards
The NBS is preparing legislation intended to bring Serbia’s insurance regulatory framework closer to the EU’s Solvency II Directive and the Insurance Distribution Directive. The central bank completed a draft insurance law during 2025, with further legislative and regulatory work expected. The reforms have not yet been fully implemented, and the final timetable remains to be determined.
Solvency II establishes a risk-based supervisory system that links capital requirements more closely to underwriting, market, credit and operational risks. The framework also places greater emphasis on corporate governance, actuarial assessments, internal risk controls and regulatory disclosure. Under the planned transition, insurers will need to assess how their investment portfolios, insurance liabilities and available capital interact under different market conditions. The treatment of financial assets and the underwriting of higher-risk business could become increasingly important to capital allocation.
Foreign-owned insurers that already operate within European group-level regulatory frameworks may have relevant experience with these requirements. Their compliance obligations in Serbia, however, will depend on the final domestic legislation, transitional arrangements and supervisory rules. The changes could also provide a framework for closer cooperation with international reinsurers and institutional investors.
Insurance Distribution Links Banks and Leasing Companies to the Sector
Serbia’s insurance market is connected to the banking and leasing industries through authorised distribution arrangements. At the end of June, 15 banks and 11 financial leasing companies were licensed to distribute insurance products. These channels connect insurance sales with mortgage lending, vehicle financing, corporate credit and other financial services. Banks can generate fee income through insurance distribution while expanding their relationships with customers.
The forthcoming changes to distribution rules may also introduce more demanding requirements concerning product suitability, transparency, conflicts of interest and consumer protection. Insurance availability is relevant to financing across Serbia’s construction, energy, manufacturing and infrastructure sectors. Lenders supporting industrial facilities, renewable energy projects and commercial properties require arrangements covering risks such as construction damage, business interruption, equipment failure and third-party liabilities.
A more developed insurance market can provide additional mechanisms for allocating these risks and supporting the financing of complex projects. However, higher regulatory capital standards do not automatically guarantee lower premiums or greater underwriting capacity for every industrial activity. Insurance costs and availability will continue to depend on individual project characteristics, claims experience, catastrophe exposure and conditions in the reinsurance market.
Capital Requirements and Underwriting Performance Shape Market Development
With first-half premiums reaching RSD 104.3 billion (€889 million), Serbia’s insurance sector is approaching the €900 million mark in half-year gross written premiums. The market combines expanding demand with a high degree of foreign ownership and substantial concentration among its largest companies.
Future financial performance will depend on underwriting profitability, investment returns, distribution efficiency and the costs associated with meeting revised regulatory requirements. The planned Solvency II transition could influence consolidation decisions, investment in risk-management technology and the development of more specialised insurance products. For banks and institutional investors, changes to regulatory reporting and capital standards could also affect assessments of insurers’ financial strength and market-risk exposure.
