The importance of insurance for the community is evident through the historical need to prevent large losses due to unforeseen circumstances in which a person may have little or no impact at all. On the one hand, policyholders buy safety, peace and better life standard in assurance of survival by payment of insurance premium, on the other, they act as creditors placing excess funds on the capital market through insurance companies. Insurance companies have existed from the end of the 19th century when the first insurance cooperative Croatia was formed which still works in a different legal form. There are currently a total of 15 life and non-life insurance companies operating in Croatia. No reinsurance company established in Croatia exists. After compulsory pension funds, insurance companies are the largest non-bank financial intermediaries in the capital market. Investments of funds collected from collected premiums are strictly regulated. The establishment and operation of the insurance sector is supervised by Hanfa - the Croatian Financial Services Supervisory Agency and the legislative and regulatory framework of the insurance market is in line with the Solvency II directive established by the EU for all member states.