An efficient and stable financial market is one of the basic prerequisites for long-term and sustainable economic growth, and it is reflected in the smooth operation of all segments of the financial system. For a country in transition, such as the Republic of Croatia, financial intermediaries are having a very important role in the development of the financial system. Primarily, credit institutions and contractual savings institutions, whose share in the structure of financial intermediaries is more than 90%, according to the Croatian Insurance Office. The importance of contractual savings institutions is reflected by the dispersion of risks and the improvement of the quality of life in the community. Furthermore, they have a positive impact on economic development. Due to the great influence of financial intermediaries on the national economy, constant monitoring is carried out by verified authorities such as the Croatian Financial Services Supervisory Agency, in order not to abuse the financial system which would disturb the financial stability of the country. In order to form a more complete picture of the development of contractual savings institutions in the Republic of Croatia, this graduate paper will present the real state of insurance companies and pension funds in the observed period of four years. The development of the observed financial intermediaries will be reflected by the elements that represent their structure, market and trade. The results of the analysis indicate the growing awareness of the citizens of the Republic of Croatia on the social and economic function of contractual savings institutions. The trend of growth and development of observed financial intermediaries is expected to continue into the future.