The liberalization of the market for compulsory motor third-party liability insurance implies the business of insurers on a market basis, while respecting the individual approach to risk and the free determination of conditions and tariffs. Despite the legislative framework and possibilities, the real liberalization of the market for compulsory motor third-party liability insurance began only after 1 July 2013, when the Republic of Croatia became a full member of the EU. The consequences of the actual liberalization were reflected in the abandonment of the common conditions and the premium system with a single basis, the application of own insurance conditions and prices, different conditions depending on the insurance company, and a significant decrease in average premiums and consequently the total gross written premiums. The liberalization of the insurance market did not have the same consequences in all countries since it has taken place in markets which are different in their characteristics. Austria, Greece, Hungary and Slovenia were included in the analysis to assess the impact of liberalization and to compare it with the Republic of Croatia. Among the analyzed countries, only Slovenia had a positive experience, since there was no drop in average premiums, which did not impair stability and security of business. In order to evaluate the effect of the liberalization of the motor liability insurance market on the financial result, the measures of technical operations, adequacy of premiums, technical provisions and ultimately the indicator of capital adequacy were analyzed. The average premiums of this type of insurance decreased after 2014, which resulted in an increase in the current technical result. At the sector-wide level, the combined ratio tended to decrease as a result of the fall in claims reported until 2014, meaning that there was room in the premium system to lower insurance premiums without compromising the stability of insurance companies. The analysis of the movement of technical provisions, the number of claims in the reserve and the number of reported motor insurance liability claims in the Republic of Croatia concluded that until 2010 there was a trend of increase in the provision for claims, and that due to the decrease in the number of reported claims, and the number of claims in the reserve, and thus the amount of claims paid, gradually decreased the claims provision. Analysis of the Solvency and Financial Statement of motor insurance companies indicated that all companies met the basic objective of managing capital and maintained the required level of stability, thus ensuring a satisfactory level of security for policyholders and maximizing returns to shareholders and policyholders.