Insurance involves transferring the risk from the insured to the insurer in which the insured pays the premium in return. Insurance companies may engage in life insurance business, which includes property insurance and liability insurance, as well as non-life insurance policies related to the protection of individuals and their family or business. The insurance market in the Republic of Croatia is controlled by the Hrvatska agencija za nadzor financijskih aktivnosti. In the Republic of Croatia there is more non-life insurance than life insurance. This is contradicted by the situation on the insurance market in Italy, where life insurance is more prevalent in relation to non-life insurance. Also, compared to the European Union, the indicators of the development of the insurance market in the Republic of Croatia are far below the average of the European Union. The above refers to the fact that the insurance sector in the Republic of Croatia is not at an adequate level compared to Italy and to the average of the European Union. However, in recent years, the situation on the insurance market is improving, and the share of life assurance premiums increases in total premium as well as the share of life assurance assets in total assets. This has a positive impact on the financial security of individuals who can provide life assurance as well as on the development of capital markets that are insufficiently developed in the Republic of Croatia.