Dušanka Talić, General Manager and Valentina Stokić, Head of Risk and Insurance Technics of GrECo Serbia talk about a demanding local administration, life insurance and the importance of construction and infrastructure projects.
How do the current political developments and economic conditions in Serbia influence the insurance industry and clients’ risks?
TALIĆ: Until the very beginning of the upcoming COVID-19 crisis, the economy showed clear and strong development. Namely, the GDP growth in 2017 was 1.9% and it continued to grow by 3.5% and 4% in 2018 and 2019, respectively. In the first quarter of 2020 the GDP growth was even more significant with 5% , but, in the second quarter GDP dropped 0.6% compared to last year. It is expected that GDP growth will drop 2-2.5% by the year end.
Current political and economic developments have a positive influence in the insurance industry which was growing in the last ten years-not only in terms of premium but also in terms of different insurances provided by insurers, namely liability and constructions risks.
In which economic segments do you expect increasing investments in the coming years?
TALIĆ: The biggest driver of economic growth is construction, than industrial production while the more stronger development is expected to happen in agricultural area. Big infrastructural projects like highway and speed railway construction were among the strongest drivers of Serbian industry. Also, there are visible investments in mining and energetic sector while government is putting lot of efforts to develop agricultural sector through numerous subventions and incentives.
Many other big investors are expected to come via government actions and policies, especially in tax segment via tax reliefs for foreign investors.
What are the biggest risks foreign companies doing business in Serbia need to consider?
STOKIĆ: Although it improved a lot, the biggest risk is slow and very demanding administration.
What are the main facts of the insurance market in Serbia?
TALIĆ: In 2019 the insurance market grew by 7.5% and the total premium reached 914 million EUR. The total share of non-life insurance was 76.7%, while life insurance accounted for 23.3%. Three lines of non-life insurance have the biggest growth: health insurance, liability and casco insurance.
During the first quarter of 2020 the growth of insurance premiums was even stronger. Obviously, the legislation activity of the National Bank of Serbia regarding firm control of all market participants and reduction of number of the participants on the market showed positive results.
Corporate insurance is dominant with almost 80% in total premium. Important insurance lines are mandatory third party motor insurance 32.9%, life insurance 23.3%, property insurance 18.7% and other non-life insurance-15.4%.
We can see a fast development of voluntary health insurance since the public health sector cannot cope with the many challenges modern medicine brings. Demand for all types of liability insurance is growing as infrastructure projects keep growing.
What specifics differ from those in other countries?
STOKIĆ: For the last few years, the National Bank of Serbia has been making efforts to harmonize the local regulations with the EU. Still there are some variances which make the local market specific: It is required for insurance companies and brokers, to be registered as domestic legal entities with full initial capital down payment and every risk must be covered via a local insurance company.
Brokers account for about 12% of all corporate insurance sales in Serbia. Is the share the same in life business?
TALIĆ: Over 95% of the total broker sales comes from non-life insurance. Insurance law allows banks and leasing companies to found an agent company which enables them to receive regular commissions in life insurance. Also, since individual life insurance is done mostly via insurance entrepreneurs, brokers have a minimal share in the life insurance sales on Serbian market.
The brokers market share is growing year to year due to state companies requiring brokers more as insurance providers and risk advisors and the growth of foreign investments with foreign companies being used to brokers as insurance intermediaries.
Can international insurance programs be implemented?
STOKIĆ: As already mentioned, international programs are carried out in accordance with local legislation. Excellent client servicing is provided via our Account Managers who are in active contact with, both, clients and controlling broker representatives.
Please describe GrECo Serbias incoming business servicing capabilities?
STOKIĆ: The team of GrECo Serbia consists of 11 professionals with more than 10 years of experience in insurance business each. All of them speak English language. The team is dedicated to service international clients. Since GrECo Serbia is recognized as the main insurance broker in infrastructural projects, especially for Chinese investors, we are able to respond to the specific risk requirements.
When was the last bankruptcy of an insurance company in Serbia? What impact did this have? How do you made preparations to minimize the effects on your clients?
TALIĆ: There was no bankruptcy of insurance company for more than 30 years. In 2001 and 2002 a couple of domestic insurance companies went through a liquidation process and their obligations had been paid through guarantee fond since these were companies dealing mostly with MTPL.
This had a short term effect on clients´ trust and confidence. A legal framework provided by National Bank of Serbia via the Insurance Law managed to regain trust in short notice. The new Insurance Law from 2016 provides mandatory details insurance participants have to provide in order to avoid disputes.
Where do you focus on when advising clients and what special expertise have you developed?
STOKIĆ: Since the economy growth is mostly driven by foreign investments in construction of infrastructure and commercial projects, we are mainly focused on the respective expertise. We developed our specialty team for construction and energy industry and this enables us to provide the best service and tailored solutions.
The other significant potential is in financial lines. Companies with various business activities face greater exposure arising from the provision of their services, as well as exposure to cyber-attacks. We are developing a specialty team in order to be able to provide the Clients with technical advices they need and to offer them appropriate insurance solution.

Dušanka Talić
General Manager
GrECo International doo, Beograd
Dušanka has a master’s degree in economics and more than 11 years of experience in insurance. Until 2009 she worked in banking sector and other firms in the field of finance. In 2009 she founded and developed a company for insurance intermediation which was recognized as a firm that has quality experts, clients and development strategy compatible with GrECo Group. In 2016 GrECo Group bought her company and they combined expertise, knowledge and processes.

Valentina Stokić
Department Manager
GrECo International doo, Beograd
Valentina graduated from the Faculty of Economics at University of Belgrade. Working in GrECo for 15 years, she has gained large experience in insurance business in various insurance lines such as property, financial lines and financial institutions, employee benefit, liability on the Serbian as well as on the international market.
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Jonathan Höh
Group Sales & Market Coordination
T +43 5 04 04 396