In this paper's content it attempts to define the concept and meaning of insurance as a business activity carried out by insurance companies, but it also attempts to explain insurance as a human need without which modern man cannot feel secure. Insurance as a human need has been present since ancient times throughout history, thousands of years ago, when the first civilizations sought to protect their property and possessions, and it can be said that the first forms of insurance appeared in the time before Christ in ancient civilizations that began to develop awareness of the risks of loss or destruction of property they owned and had at their disposal. Furthermore, it attempts to explain and bring closer the definition of insurance, its meaning, historical development, and its functions and division. The basic functions of insurance, market participants, its division and sub-division, are explained in the rest of this paper. It will also mention the way insurance functions in the Republic of Croatia with the associated legal framework, and since the "Insurance Company ASA Central d.d.", which is the subject of this paper, operates in Bosnia and Herzegovina, attention will also be focused on the functioning of the insurance industry and its legal framework in that country. Regarding the topic of this paper, the highest attention is focused on the merger of two insurance companies that operated completely separately as individuals and achieved solid results on the insurance market. In the end, the merger was agreed upon by Central Insurance d.d. becomes part of the ASA Group by being merged with ASA Insurance d.d. and the insurance company starts operating under the name ASA Central d.d. which ultimately leads to the Company becoming a leader among insurance companies on the insurance market in Bosnia and Herzegovina.