THE SIGNIFICANCE OF CAPITAL MARKET DEVELOPMENT FOR INSURANCE COMPANIES AS INSTITUTIONAL INVESTORS IN THE REPUBLIC OF SERBIA.

Non-bank financial institutions, as significant participants in the global financial market, lack the ability to create diversified portfolios of their assets in the capital market in Serbia. Instead, they hold funds either in deposit accounts with banks or invest in government securities. Considering the importance of capital market development for the economy, the Republic of Serbia has adopted a Capital Market Development Strategy for the period from 2021 to 2026, which aims to foster the development of the corporate bond market. Furthermore, the World Bank has approved a loan to Serbia to support the development of the capital market. This paper aims to highlight the significance of capital market development for institutional investors, particularly insurance companies on one hand, and for the entire financial sector on the other hand. The paper will address the current state of the capital market, specifically the structure of securities in which insurance companies invest, and the opportunities that capital market development could bring for investors and the overall national economy. Keywords: capital market, investors, insurance companies, securities, bonds

Keywords: capital market, investors, insurance companies, securities, bonds