In the aim of organized, planned and effective conducting business and tasks from its jurisdiction, the Agency is continuously working on the strengthening of cooperation with domestic and international organizations and institutions, competent for the insurance sector as well as the national insurance supervisors.
COMMITTEE
In accordance with the Law on Committee for Coordination of Supervision of Financial Sector of the Republic of Srpska, the Agency has signed Cooperation Agreement of Supervisory Bodies of the Financial Sector of RS with the Banking Agency of the Republic of Srpska and Republic of Srpska Securities Commission.
This agreement was signed in the aim of preserving the stability of the financial sector of the Republic of Srpska, its further development but also for the more quality protection of rights of financial services’ users.
Committee for Coordination of Supervision of the Financial Sector of the Republic of Srpska was founded in order to establish a complete coordination of work of supervision bodies of the financial sector RS, adopting a unique strategy and supervision development guidelines as well as providing the protection of rights of service’s users of the financial sector of the Republic of Srpska.
The members of the Committee are: the Minister of Finance of the Republic of Srpska, President of the Republica Srpska Securities Commission, Director of the Banking Agency of the Republic of Srpska and Director of the Insurance Agency of the Republic of Srpska.
INSTITUTIONS IN THE REPUBLIC OF SRPSKA AND BIH
Cooperation with the institutions in the Republic of Srpska and BiH was established with:
- the Ministry of Finance of RS for the improvement and harmonization of the law regulations from the insurance field and improvement of the financial reporting of the insurance companies,
- the Ministry of Internal Affairs of RS for the exchange of information in the aim of establishing the Agency’s Information System and the Information Centre of MTPL,
- Ministry of Economic Relations of RS and the Directorate for European Integration of BiH in the process of harmonizing regulations from insurance fields with the respective EU directives, and also the preparation of the report on the progress in EU convergence process,
- Insurance Agency in BiH, for the exchange of statistical data on the state of the insurance market in BiH, the drafting of the transposition and correlation tables and other legal bases,
- Insurance Supervision Agency of FBiH, for the common acting on the arrangement of the insurance market of BiH and the development of the supervisory practices for the application of the legal provisions in inter-entity providing of insurance services,
- State Investigation and Protection Agency in the area of the defined obligations of the regulators according to the Law on Prevention of Money Laundering.
INTERNATIONAL COOPERATION
The Insurance Agency of Republic of Srpska participated in the Conference organized by EIOPA
Insurance Agency of Republic of Srpska, in accordance with its insurance sector supervisory function, has commenced with activities of preparation for implementation of International financial reporting standard 17 (IFRS 17)
Fisrt workshop titled; “Preparation for implementation of International financial reporting standard 17”, organized by World bank consultants with support of Insurance Agency of Republic of Srpska, has been conducted, where representatives from all insurance companies based in Republic of Srpska, as well as representatives from Ministry of finance of Republic of Srpska, took part.
At the workshop, a basic theory concepts of the standard have been reviewed, basic impacts on content and structure of insurance companies financial reports have been presented, and international experiences so far in implementation of this standard have been presented.
“FIRST initiative” has approved to the Insurance Agency of the Republic of Srpska the project: “BiH 10295: “FIRST initiative”
is a partner organization in which is involved World Bank, through IBRD and IDA, together with the International Monetary Fund and other donors and is established in the aim of providing technical support to the financial sector of the underdeveloped and medium developed countries.
The project is financed by the donor funds and will be realized in the form of technical assistance of the consultants of the World Bank in the period January 2013 to September 2014. The users are, except of the Insurance Agency of the Republic of Srpska, Insurance Agency in BiH and the Insurance Supervisory Agency FBiH.
Basic objectives of this project are:
1. Providing of the technical assistance in creating the model of liberalization of the obligatory insurance of MTPL,
2. . Developing of the actuarial tools necessary for determining of the premium rates and technical reserves of the obligatory insurance for MTPL,
3. Proposing of the regulatory framework of the obligatory insurance of MTPL based on the respective EU Directives and commitments from Stabilization and Association Agreement with EU, but also on good international practice of the liberalization of MTPL obligatory insurance market,
4. Better protection of interests of the third injured parties, when the claims of the obligatory insurance of MTPL are concerned.
Insurance Agency of the Republic Srpska expects that the successful realization of the Project shall give contribution to the improvement of the obligatory insurance market from MTPL in the Republic of Srpska and BiH in the context of its liberalization. Liberalization of obligatory insurance market in the Republic of Srpska is one of the guidelines of the Government of the Republic of Srpska and is defined in the Economic Policy of the Republic of Srpska for 2013.
The Insurance Agency of the Republic of Srpska is one of the users of Twinning Project BA 07 IB FI 01 “EU Support for Sustainable Institutional Strengthening of the Insurance Agency of BiH, Insurance Agency of the Republic of Srpska and the Insurance Supervisory Agency FBiH”
Twinning Project is financed by the European Union through “the Instrument for Pre-accession Assistance” (IPA) for 2007 and the total amount of Euro 800 000. The Project was launched on 21 April 2010 in the duration of 27 months and is conducted by the Financial Supervision Agency of the Republic of Bulgaria.
The aim of the Project is the development of the insurance market in BiH, with the strong institutional framework and in accordance with the constitutional system of Bosnia and Herzegovina. The Project activities are directed on:
-sustainable institutional strengthening of the Insurance Agency in BiH, Insurance Agency of the Republic of Srpska and the Insurance Supervisory Agency FBiH,
– the development of the regulatory and supervisory practices in accordance with EU standards, laws and regulations,
-transparency in the exchange of information and reporting and
– further harmonization of the regulations and institutional framework of MTPL insurance with the requirements of EU Directives.
The Insurance Agency of the Republic of Srpska expects that the successful realization of this project will give contribution to the improvement of the insurance markets in the Republic of Srpska and BiH in the context of the possible signing of the Stabilization and Association Agreement of BiH to the European Union.
The Project activities were completed in April 2012. Brochure and photographs from the closing you can download here , English version
The insurance Agency of the Republic of Srpska is, at the invitation of the Insurance Supervision Agency of the Republic of Slovenia participated in the work of the First College of Supervisors for the Triglav Group, which was held in Ljubljana (Republic of Slovenia) on 15 November 2011.
The Insurance Agency of the Republic of Srpska is a partner institution of USAID leading regional programme for the development of the financial sector in the Southeast Europe and Eurasia: „Programme for the Financial Stability PFS“
PFS supports the development of the financial sector by gathering of regional institutions from the partner and mentor states in order to address regional challenges, promotion, adoption and application of the best international practices and for exchange of experiences.
In the framework of SEEC Insurance Programme of Disaster Risk, the Insurance Agency of the Republic of Srpska has participated at the First Regional Conference of Europa Reinsurance Facility Ltd. on the topic : “The Development of the Insurance Market from the Natural Disasters and Bad Weather Conditions in Southeast Europe and Caucasus countrie”
Europa Reinsurance Facility Ltd – “Europa Re”, whose headquarters is in Switzerland is founded in November 2009 in accordance with the Swiss law and is predicted to be owned by the countries of the Southeast Europe and Caucasus countries. Aim of the “Europa Re” is the increasing the level of insurance coverage of natural disasters and bad weather conditions risk and is intended for the households, farmers, small and medium enterprises, public and utility enterprises, where such insurance is not compulsory. “Europa Re” would offer products at the Republic of Srpska area through insurance companies of the Republic of Srpska and would represent some type of complementary coverage (not competitive) to the currently existing products and the expanding of coverage offer which at present do not exist in the offer of insurance companies of the Republic of Srpska. Insurance Companies would have in their disposal a web platform for issuing insurance policies, as well as “back-office” support when selling the products. In addition to commissions which the insurance companies would get for ceded risks, at their disposal is also the possibility of keeping the risk in accordance with their financial capacity.Besides the direct positive effects for insurance market , the positive effects would be reflected also in the synergy which would be realized by the regional unifying of different countries’ risk in the singular, better structured portfolio and in the development of the highly sophisticated disaster risk models and bad weather conditions risks for the region.
Insurance Agency of the Republic of Srpska has given its contribution to the drafting of the Report on Observance of Standards and Codes (ROSC) – Accounting and Audit Overview (A&A).
This review deals with the assessment of the comparibility of domestic standards for accounting and audit with the International Financial Reporting Standards (IFRS) that is, International Standards for Audit (ISA) and the level of actual compliance with standards which are applied on the financial reports of the business entities prescribed by law. The assessment was performed on the basis of the diagnostic tool, developed by the World Bank.
The purpose of this meeting is the exchange of information and indicators of business of the companies which are doing business in the framework of Triglav Group as well as the exchange of supervisory questions and experiences, when it is the supervision of the individual companies from the Triglav Group in question.