The aim of this paper is to point out certain characteristics of insurance market as a specific segment of financial services market. One of the characteristics of this market is the cost of insurance as differentia specific. The model presented in this paper shows how the insurer who is informed about the takeover risk can influence the cost of insurance. The development of insurance market indicates the development of national economies and the living standards. The data about the premium per capita national income per capita, the size of GDP and the number of citizens in different regions contain very interesting information. Processes of transition and macroeconomic reforms have led to a faster development of insurance in ex-socialist countries.