Longtime globalization and deregulation trends have influenced the weakening of the role of traditional banking institutions and the strengthening of the role of insurance companies as financial intermediaries. Insurance companies are important participants in the financial market and are an important factor in the economic development of each country. The primary function of insurance companies is to protect individuals from the dangers of an uncertain future. In economic terms, insurance is an instrument by which an individual substitutes a relatively small amount of insurance premium for a relatively large and uncertain financial loss that would be possible in the absence of insurance. The aim of insurance companies is to create a stable investment portfolio that, by its size and quality, will provide sufficient resources to cover the risks taken out by insurance, to cover the costs of an insurance company, and to make a profit. With their investment strategy, insurance companies contribute to the development of all segments of the financial market, that is, their prudent, thoughtful, and at the same time, conservative investment strategy contributes to the stabilization of the economy of a country and of the social community as a whole. This paper analyzes the operations of insurance companies and their financial importance on the Croatian market.