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Introductory notes of the President of the Council of the Insurance Supervision Agency at the Seminar at the occasion of the official commencement of the Twinning Project “Strengthening the Regulatory and Supervisory Capacity of the Financial Regulators”

Dear representatives of the Government,  Twinning Project Partners,

Ladies and Gentlemen,

It is always a pleasure to take part in gatherings celebrating the commencement of new activities and projects. A particular pleasure lies in the fact that this Project addresses a quite challenging task, precisely the process of adjustment to the European standards.  Furthermore, partnership with such prominent institutions always represents a particular obligation and challenge.

It is my pleasure that the Insurance Supervision Agency, as the regulator of the insurance market of Montenegro, will be the beneficiary of this Twinning Project. Harmonization of the Montenegrin financial supervisory framework with the relevant European standards is not only the objective of this Project, but also one of our core strategic directions.

 

Strengthening of the institutional and administrative capacities of the key financial institutions is of the essential importance in the process of the European integration, while the full adoption and application of the Acquis Communautaire brings along an enormous development potential.  We do not see the preparation for the Union membership to be a bureaucratic, administrative or procedural process, but an essential process of preparation for the competition in the larger, broader and more competitive market. The European market represents, first and foremost, an opportunity.  Operation on the global open market also requires deep essential changes on our side – in addition to changes in skills it would also include changes in habits, behavior and expectations. The Insurance Supervision Agency is ready for such challenges.

In its present practice and planned activities, the Agency is focused on its own institutional strengthening in accordance with the best European and international practice, all aimed at strengthening and growth of the insurance market. Strengthening of the competition and expansion of the offer of new insurance forms were the basic features of the Montenegrin insurance market over the course of previous several years.  We expect that such trend will continue in the long run, while the stagnation caused by the global economic crisis represents only an oscillation in the positive development trends.

The trends in the Montenegrin financial market, with insurance market being its integral part, accompanied by challenges of the global economy – the financial crisis, have accentuated the need to strengthen and improve supervisory framework.  Understanding and passing of relevant European legislation and best practices are an inevitable element of this process.  Therefore, this Project is taking place right on time.

Envisaged project activities dealing with the strengthening of the regulatory and supervisory framework in the insurance market will contribute to the long-term stability of the financial market and overall economic growth.

We are aware that the communication and exchange of information represent a significant development resource. Thus, in the Insurance Supervision Agency we pay due attention to our communication with domestic, regional and international institutions.  We expect that the provided technical and administrative assistance will facilitate the development of the long-term and quality relations with the European institutions and institutions of the Union member states having tasks compatible with ours.

The planned training of employees in the Agency; mastering the techniques offered by the new “Solvency II” Directive and its transposition into the national legislation; followed by the training of employees on the fundamental principles of the International Association of Insurance Supervisors; training on supervision of the compulsory transport insurance; are only some of the activities that will contribute to the improvement of effectiveness and efficiency of the Agency’s regulatory capacities.

Through the Project activities significant attention will be paid to the prevention of using entities participating in the insurance market for money laundering and terrorism financing.  A part of the activities in this segment will be aimed at improving the regulatory framework and development of supervisory capacities as well as raising awareness of insurance companies and general public.

All these activities will contribute to the ultimate objective of the Project and achieving a long-term stability of the overall financial system, as well as to the strengthening of the development potential.

We are grateful to our partners from the European Commission which made this Project possible. I believe that together with the colleagues from the Bulgarian National Bank, the Central Bank of the Netherlands and the Bulgarian Financial Supervision Commission we will be successful in accomplishing the mission of the Project.

Finally, I would like to wish us to be successful in this Project and continue this established communication even after its completion.