Insurance companies, as non-deposit financial institutions, have a growing role in modern financial flows. With their business volume, they contribute to the faster development of capital markets, and thus to faster economic growth. They represent a dominant group of financial institutions in market-oriented financial systems that, thanks to diversification of placements and economies of scale, have the ability to create an optimal portfolio structure for a short time and with lower transit costs. It is therefore of particular importance for each national economy to improve the sphere of operations of this sector of financial intermediation. Unlike the developed market economies characterized by active investment policy and financial stability of the insurance sector in less developed economies, investment activity is moderate, and the insurance sectors are shallow and therefore unstable in the long run. In accordance with the analyzed advantages and disadvantages of the insurance markets, their main challenges in the coming period are the creation of conditions for higher growth in life insurance premiums, the expansion of portfolios in non-life insurance and greater investment activity in the capital market. For this it is necessary to increase the density and penetration of the insurance market, as well as to achieve better financial performance of insurers in all analyzed markets.
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