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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
Insurance is regulated under the Law on Insurance. Serbian residents may only obtain insurance in Serbia by the locally incorporated and licensed entities. In case a particular risk cannot be insured in Serbia, Serbian resident may be insured abroad. The trend of concluding online insurance of natural persons, specifically in the area of travel insurance is increasing.
Internet of things is not a regulated activity and is not present on the market.
Legal affairs
Obligations and requirements to provide InsurTech-services
Only locally incorporated entities which obtained license from the NBS may provide insurance in Serbia. The minimum capital ranges from EUR 2.2 million to 3.2 million depending on the type of insurance provided. Cross-border passporting of licenses is not possible. However, in case particular risk cannot be insured in Serbia, Serbian resident may be insured abroad.
The Law on Insurance also regulates insurance representation (in Serbian: zastupanje u osiguranju) and insurance intermediation (in Serbian: posredovanje u osiguranju).
Insurance representation comprises initiating, proposing or performing the tasks of preparing and concluding insurance contracts in the name and on behalf of the insurance company.
Insurance representation activities are performed by a legal entity or a natural person – an entrepreneur who obtained a license for insurance representation activities from the NBS on the basis of an insurance representation contract. An insurance representation company can be established as a joint stock company or a limited liability company. If established as a joint stock company, the monetary part of the share capital cannot be less than EUR 25,000 and if established as a limited liability company, the monetary part of the share capital cannot be less than EUR 12,500.
Insurance intermediation are activities related to bringing together insured persons, insurance/reinsurance contractors and insurance/reinsurance companies for the purpose of negotiating the conclusion of insurance/reinsurance contracts, preparation for concluding these contracts, as well as providing assistance in execution rights under those contracts, and in particular in resolving claims for damages. Insurance intermediation activities may be performed in Serbia on the basis of the license obtained from the NBS. Companies engaged in insurance intermediation cannot perform insurance representation activities. An insurance intermediation company can be established as a joint stock company or a limited liability company. If established as a joint stock company, the monetary part of the share capital cannot be less than EUR 25,000 and if established as a limited liability company, the monetary part of the share capital cannot be less than EUR 12,500.
Additional comments regarding the legal situation for Ins