METHODOLOGY OF DETERMINING AND PRESENTING FINANCIAL RESULTS IN PROPERTY AND PERSONAL INSURANCE IN SERBIA

The existing Insurance Law and by-laws, adopted on the basis of the provisions of the Law, do not provide data according to the International Accounting Standards and International Financial Reporting Standards, and most of all they do not provide the data which are necessary for the insured to choose the insurance company he wishes to conclude an insurance contract with. It is necessary that future Insurance Law amendments, among other things, closely regulate the following issues:

– property and personal insurance funds and sources of funds;
– formation and use of guarantee fund and technical reserves in life and non-life insurance lines, and before all the methodology of guarantee fund and technical reserves coverage;
– capital adequacy and the coverage of declared loss at the end of a business year;
– deferral ofinsurance premiumto accounting periods according to the period ofinsurance contract;
– deferral and declaration of underwriting expenses in life and non-life insurance lines;
– issue of granting bonus, discount and calculating malus;
– methodology of drawing up and presenting statement of operations, according to insurance lines and in total(profit and loss account).