An individual is daily exposed to various dangers that threaten his life and his goodness. Such dangers ofter occur unexpected and cause harmful events that carry material and financial losses and consequences. In order to protect themselves against such risks and eventually mitigate the consequences of harmful events, each individual have at his disposal an effective way of protection through insurance. Insurance have a very important role in providing protection and security of the individual and his property, which contributes to its importance in the financial and economic system of each country. The insurance industry is one of the key industries in the development of each country, especially in world economies. The results of comparative analysis have shown that the Republic of Slovenia in several segments achieves better results than the Republic of Croatia, which is why the Slovenian insurance market can be seen as more powerful and more developed. This is particularly evident in the main indicators of the insurance market – insurance density, according to which the Slovenian insurance market is almost four times bigger, and insurance penetration, according to which the Slovenian insurance market is twice as big as the Croatian insurance market. In both countries, life insurance premiums take about 30% share in total premiums, which is why the life insurance market in these countries is relatively underdeveloped. Therefore, in this segment, both countries have room for progress in terms of expanding the life insurance market. Although the Republic of Croatia in some segments lags behind the Republic of Slovenia, this does not necessarily imply to a major problem, but a potential for progress and further growth and the development of the Croatian insurance market. Apart from improving macroeconomic indicators, an important role in strengthening the Croatian insurance market might be in increasing the awareness of the population about the significance of insurance and insurance products, increasing financial literacy of the population through various education and building trust in insurance companies and the insurance industry. Any positive result in coming years might successfully have an influence on strenghthening the business of insurance companies and, in general, the development of the insurance industry, which ultimately can contribute to creating a stronger and more stable insurance market.