mira eric - jovic : compulsory insurance, damage compensation and security over receivables opening speech by mrs mira eric - jovic, vice - governor of the national bank of serbia, at the 13th annual conference “ compulsory insurance, damage compensation and security over receivables ”, belgrade, 16 september 2010. * * * ladies and gentlemen, it gives me great pleasure to greet you all on behalf of the national bank of serbia, sponsor of this 13th regular annual conference, as well as to point out the significance of this event and the importance of its agenda. namely, all expertise acquired and activities taken in order to improve damage compensation procedures and upgrade fair and sound insurer practices will lead to more equitable damage compensation according to principles of fairness and justice. this, at the same time, represents a precondition for efficient consumer protection and building consumer confidence in the insurance business, which, in turn, is a prerequisite to insurance sector growth. that is why this conference and its agenda – compulsory automotive insurance, damage compensation and security over receivables – are particularly significant at this point, i. e. after the enactment of the new law which now has to be implemented fully in practice. the solutions laid down by this law, particularly those relating to damage compensation, aim primarily to protect the interests of damaged parties. this is all the more so as such persons, for no fault on their part or even active participation in damage events, suffer the consequences of someone else ’ s reckless or accidental conduct, often for as long as they live. legal solutions therefore seek to ensure that those persons can exercise their right to damage compensation in full and as effectively as possible. i believe that, regulatory - wise, we have made significant progress in this segment of the system. improvement of the regulatory framework should, of course, be accompanied with building good insurer practice, leading ultimately to their better performance, but also to improved court practice and practice of other parties in the process of damage evaluation and compensation. the importance of adequate implementation of the law cannot be stressed enough – this type of insurance holds a 30 % share in the domestic insurance market, while as many as 11 of the 22 companies engaging in insurance business are involved in compulsory insurance. true, available data point to some positive trends in terms of timeliness in the claim resolution process, as well as in terms of reducing the number of overdue claims. nevertheless, it should be said that though improved, timeliness is still

d. behzad ( 2017 ), “ pegging the interest rate on bank reserves ”. werning, i. ( 2015 ), “ incomplete markets and aggregate demand ”, nber working paper no. 21448. woodford, m. ( 2003 ), “ imperfect common knowledge and the effects of monetary policy ”, knowledge, information, and expectations in modern macroeconomics : in honor of edmund s. phelps. 1 see e. g. corsetti - dedola, 2016 for a framework with self - fulfilling sovereign debt crises and gertler and kiyotaki, 2016 for a framework with systemic bank runs. 2 see del negro, giannoni, and patterson, 2015, gabaix ( 2016 ), garcia - schmidt and woodford ( 2015 ), mckay, nakamura and steinsson ( 2016 ), werning ( 2015 ), for example. 3 their work is related to earlier contributions by morris and shin ( 1998, 2002 ) and woodford ( 2003 ) and is similar in spirit to adam and marcet ’ s work ( 2011 ) on “ internal ” vs “ external ” rationality. 4 see duffie, d. and a. krishnamurthy, ( 2016 ), “ pass - through efficiency in the fed ’ s new monetary policy setting ”, presented at the 2016 jackson hole symposium of the federal reserve bank of kansas city and greenwood, r., s. g. hanson and j. c. stein, ( 2016 ), “ the federal reserve ’ s balance sheet as a financial tool ”, presented at the 2016 jackson hole symposium of the federal reserve bank of kansas city. 5 see constancio, v., ( 2017 ), “ the future of monetary policy frameworks ”. 6 see william, d., ( 2017 ), “ the u. s. economic outlook and the implications for monetary policy ”, speech on 7 september 2017 available in. 7 see constancio, v., ( 2017 ), “ inequality and macroeconomic policies ”. 9 / 9 bis central bankers'speeches