The insurance market is necessary for the good functioning of the economic system. The concept of a country's insurance market can be determined in several ways, such as the total annual premium in one country, the per capita premium, the number of market participants, the market potential, and so on. Insurance companies distribute their products directly or through intermediaries with the help of insurance agents and insurance brokers. Insurance agents are conducting business on behalf of the insurance companies, while on the other hand, insurance brokers act on behalf of the clients and work for the policymakers. The European Union conducted a directive on insurance intermediation that created a new legislation in the European Union in 2002. Insurance intermediation is represented as a potential for reduction of transaction and search costs but also as reduction of information asymmetry between insurers and customers. There are currently 20 life and non-life insurance companies in Croatia. Business performance is reflected in the ability of companies to achieve maximum profit by using available resources. The dynamics of development of insurance activity in the Republic of Croatia is among the prospective development activities. Insurance companies have many functions but the basic one is selling. Insurers are providing economic protection of customers and their properties and/or possesions in realization of insured case. Previously stated activities couldn´t be possible without proper negotitation education and successful selling and service payment skills of the insurer. Insurance companies must pay attention to the insurance service, quality products and well educated negotiators. It is neecessary to plan and to create quality insurance services that are price appealing and also satisfying according to the needs of current and potential buyers.