The National Bank of Serbia published its second quarter 2025 report on the insurance sector, showing higher premiums and balance sheet growth alongside reported solvency and liquidity buffers. Total premium rose 9.8% year on year to RSD 97.6 billion, while the sector’s balance sheet total reached RSD 440.7 billion as at 30 June 2025, up 9.0%. Capital increased 12.2% to RSD 82.5 billion and technical reserves grew 6.6% to RSD 297.4 billion. Market structure remained unchanged with 20 (re)insurance companies, of which 15 were majority foreign-owned, and employment slipped 1.0% to 11,325. Non-life insurance remained dominant at 83.7% of premium, with motor third-party liability the largest line at 27.3% of premiums, followed by property insurance (20.4%), life insurance (16.3%), voluntary health (12.2%) and comprehensive motor (11.7%). Non-life premiums increased 11.5%, including motor liability up 10.7% on a 4.3% rise in contracts and a 6.1% increase in average premium, while voluntary health rose 22.0% and comprehensive motor 17.4%; three insurers accounted for 63.5% of the voluntary health segment. Available solvency margin totalled RSD 67.2 billion versus a required margin of RSD 30.2 billion, giving basic capital adequacy ratios of 218.3% for predominantly non-life insurers and 241.2% for predominantly life insurers; liquid assets covered short-term liabilities by 105.4%. Assets were mainly in debt securities, with 35.9% in debt securities valued at fair value through other result and 14.0% in fixed-income debt securities, and the report states that technical reserves were fully invested in prescribed asset forms. The report indicates that significant supervisory and regulatory changes are expected as Serbia moves towards full alignment with the Insurance Distribution Directive and implementation of Solvency II, referencing a phased Solvency II implementation approach under the May 2021 national strategy.

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