Role of Insurance Companies in Financial Market

The financial market in the broadest sense is an organized place where supply and demand for financial assets meet each other, where we have a price formation of those activities. Financial job market means all institutions and processes by which buyers and sellers of financial instruments connect regardless of the nature of the financial instrument. It allows the free circulation of cash and capital and their routing where these funds can best be utilized. Modern insurance is no longer of importance only to individuals who are joining in community protected from possible adverse consequences. It is of great significance for a number of subjects, but also for the community. Due to the fact that insurance forms huge capital which is a part of national savings for impretictable cases, the importance of insurance for the economy of each country is enormous. The subject of this paper is a theoretical study of the influence of insurance companies on the financial market. By analying insurance companies, the aim is to determine how and in what way they affect business of financial market.