Green bonds are becoming a global need, they are an innovative financial instrument used to finance projects with a positive impact on the environment. The goals of green financing can be achieved only with a stimulating environment that prevails within states, organizations and other communities, an appropriate regulatory framework as well as the development of plans for long-term sustainable development. The regulatory framework is one of the biggest obstacles to such investments because it is still in its early stages. The key role in regulating and encouraging the development of the green bond market is played by the state, which can influence the increase of the investor base by issuing green bonds. The issuance of green bonds is determined by the principles of green bonds. The publication of the principle of green bonds has led to an increase in investor confidence in green bonds, which has also stimulated increased demand for green bonds. The aim of this paper is to analyze the risks and investment potential of insurers as one of the institutional investors in green bonds. Socially responsible and environmentally sustainable financial investments are becoming increasingly important. Green bonds emerged in 2007 as an instrument of socially responsible financial investment that can serve as a solution to environmental, social and economic challenges caused by the unconscious behavior of many market participants. The aim of this paper is also to analyze the impact of green bond policy on insurers and the impact of the introduction of green bonds by insurance companies on equity prices. The impact of Solvency II regulation on insurers' investment will also be analyzed.