Liberalizacija tarifa u osiguranju od auto-odgovornosti Republike Srpske
Liberalisation of tariffs on market MTLP insurance of Republic of Srpska

Summary/Abstract: Good set price in MTPL(motor third part liability) insurance is vital to the survival of insurers. MTPL insurance in the Republic of Srpska is legal liability insurance, the premium system is determined administratively, and premium of this kind of insurance occupies the largest share in the portfolio of insurance companies. The main problems in the functioning of the sector MTPL insurance are: unfair competition, violation of the premium automobile liability insurance system, large proportion of transactions with related parties, the lack of transparency, underdeveloped systems of internal control and audit, and poor cost management. Determination of tariffs in liberalized markets, the work done by each insurance company individually, with the application of mathematical and statistical methods, in order to adequately determine what premiums and adjust the riskiness of each insured. In the process of introducing a system of free pricing of automobile insurance, it is necessary to provide a number of conditions, the most important are: to establish a reliable statistical basis for the formation of tariffs; improvement of controls; and compliance with European legislation. Some countries have had major problems after the introduction of liberalization of tariffs on MTPL insurance market, while others through the process of liberalization with minor problems. The liberalization of tariffs potentially creates certain hazards, but also benefits for the market MTPL insurance Republic of Srpska. In the current political, legal and economic situation in which the Republic of Srpska, the most appropriate solution would be partial and gradual market liberalization MTPL insurance.

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