, as a country aspiring to access the union, have another fresh challenge before us. we are profoundly aware of this fact, which has been taken into utmost consideration in all our activities to this day. the insurance law that we have today has already integrated some elements of the solvency ii regulatory framework, and we have established a strategy for the path to full harmonisation. in view of the new deadlines to complete the national legal framework entirely built on european 3 / 5 bis central bankers'speeches standards, our plan is to prepare new regulations by 2020 or 2021 to meet this objective. what remains until then is for us to prepare well and also to prepare the market under our supervision. for this reason, we have already conducted a preliminary stress test, and plan on implementing a number of quantitative impact studies and defining an optimal model of legal amendments and secondary legislation, which will implement the solvency ii framework by the stated deadline. the question, however, is when they will be applied. a number of future provisions is also expected to have a delayed effect. what lies before us is certainly a complex task of meeting european standards, all the while maintaining the stability of the domestic insurance market. at the moment, perhaps the largest challenge is improving regulations concerning compulsory traffic insurance. this is a task undertaken by the ministry of finance, though with the wholehearted help and coordination of other public institutions, including the national bank of serbia. at our initiative, the insurance sector was directly involved in this task through the association of serbian insurers. therefore, it is very good to have all the relevant parties gathered here today, where one of the central topics for further discussion will, in fact, be compulsory traffic insurance. my close associate will also take part in these discussions, but something i wish to tell you personally is that market participants must reach a consensus about sensitive matters, for this is the only way that we can ultimately get regulations that are applicable in practice. the lack of such applicability is precisely the greatest drawback of a large number of provisions under the current law on compulsory traffic insurance. once that job is done, we will have a well - rounded and high - quality regulatory framework for insurance, paving the way for further improvements of regulations, which have already been mentioned. in addition to all what has been said, the national bank of serbia makes effort, within its main competences, to have a continuous influence on the business and investment climate in serbia, as well as overall price and financial stability

jorgovanka tabakovic : current situation and challenges in supervision of the domestic insurance market introductory address by dr jorgovanka tabakovic, governor of the national bank of serbia, at the insurance gathering " serbian insurance days ", aranđelovac, 29 november 2017. * * * dear ladies and gentlemen, esteemed representatives of the insurance industry, state institutions, corporate sector and university, dear international guests, i have the pleasure of introductory address at this gathering, the first large - scale event fully dedicated to insurance business. first of all, i would like to extend my full support to the organisers ’ idea to contribute, by this event, to putting insurance business in its rightful place, not only in the country ’ s financial system, but also in the lives of each one of us, as citizens and beneficiaries. this important and yet unjustifiably neglected activity, managed to remain healthy in its core and to continue its slow, but still unstoppable development. though the pace of that development is not what we, workers in the financial sector, would like it to be, insurance is definitely looking at a bright future. as the governor of the national bank of serbia, the insurance supervisor for already thirteen years, i will briefly recapitulate for you today our vision of insurance business, issues that are topical and pending, and desirable ways to address them, as well as other aspects and challenges of our supervisory work. insurance business in serbia has seen some drastic changes and improvements since the national bank of serbia assumed the role of its supervisor. this business is still constantly changing and aligning with the european standards. all entities that failed to meet the criteria of such alignment left the insurance business, making room for new market players, mostly as subsidiaries of internationally recognised insurance undertakings. therefore, in the last decade the insurance business was very dynamic also in terms of foreign direct investment. insurance undertakings founded by foreign owners started from very high pecuniary founder ’ s stakes, and with the growth of their business, became also serious investors in government bonds and other financial instruments ; not so rarely they even founded their own subsidiaries and invested in real estate construction. today, the serbian insurance market comprises seventeen insurance undertakings and four reinsurance undertakings. six undertakings are engaged in both life and non - life insurance, while four are exclusive life insurers and seven exclusive non - life insurers. in addition to insurance and