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InsurTech is composed of the words “insurance” and “technology”. It is used as a collective term for the application of modern technologies in the domain of insurance services.
Digital and mobile brokers: FinTechs belonging to this category mostly act as digital insurance brokers and provide users with an overview of their insurance contracts with their respective conditions. Some FinTechs offer very short-term insurance contracts to cover specific cases which can be concluded often spontaneously via mobile devices. Oftentimes additional consulting services are offered.
Internet of things: FinTechs belonging to this category collect data by measuring for example the driving style of the customers or through wearables the customers wear to consult on, offer and/or manage the customer’s insurances.
Introduction
Attitude of the country towards InsurTech-services
Pursuant to applicable legislation insurance activity in BiH can be performed by insurance companies established in the form of joint-stock companies.
Legal affairs
Obligations and requirements to provide InsurTech-services
Insurance activity in BiH can be performed by insurance companies established in the form of joint-stock companies. The minimum share capital requirement in FBiH ranges from BAM 4,000,000 (approx. EUR 2,000,000 to BAM 6,000,000 depending on the type of risk insured, and the minimum share capital requirement in RS ranges from BAM 2,000,000 to BAM 3,000,000 depending on the type of risk insured. The fee for obtaining the licence issued by insurance agencies in FBiH and RS amount to BAM 20,000 (approx. EUR 10,000).
Additional comments regarding the legal situation for InsurTech-services or what InsurTech’s must be aware of in this business area
N/A.
Economic conditions
Market size for InsurTech-services and biggest companies in this business area
Pursuant to the applicable legislation, insurance activity in BiH can be performed only by licensed insurance companies. However, digital insurance applications are highly popular among licenced insurance companies. Such services can be developed by FinTech companies.
Additional comments regarding the economic situation for InsurTech-services or what InsurTech’s must be aware of in this business area
N/A.