Brcko Supervisor Raffi Gregorian today issued a Supervisory Order on the applicability of Entity legislation regulating the establishment, supervision, business operations and governance of insurance companies and obligatory insurance within Brcko District. This Order is an addendum to the August 4, 2006 Supervisory Order “Abolishing Entity Legislation within Brcko District and Declaring the Inter-Entity Boundary Line to Be of No Further Legal Significance within the District”.
Since the Supervisory Order of August 4, 2006 abolished entity legislation, and the District has not developed its own legislation regulating the insurance sector, this area of business became unregulated within the Brcko District.
Insurance companies cannot work if not registered and supervised by an insurance agency. The option of establishing a District insurance agency has been explored and assessed as an unnecessary and disproportional burden on District resources.
Therefore, Supervisor Gregorian decided that Entity laws and regulations relating to the insurance sector will be in force in the District until such time that they are repealed by a decision or legislative enactment of the Brcko District Assembly.
The effect of the Supervisory Order is that branch offices of insurance companies operating in the Brcko District will continue to be supervised by the insurance agency of the Entity that registered those companies, and insurance companies with the seat in Brcko District will be free to choose the insurance agency of an Entity with which they wish to register. Once they are registered, they will fall under the supervision of that particular Entity insurance agency.