Life insurance is a complex system of various parameters and variables which together with various inputs results in a special function, that is, life insurance model. Life insurance has a multiple importance, with synergistic effect. It is of essential importance for both the insurer and insured, personally and collectively; insurance company as a business with permanent upward trend; business environment in which the insurance company works, especially in financial and economic circumstances; social and state community – as overall stabilising and developing potential. Life insurance, as a form of personal saving, has more meaningful elements and more direct psychological effects on individuals, with greater financial and material effects than conventional savings in banks. With the aim to reach those effects, as a final result, it is necessary to identify, on time and as completely as possible, all relevant impacts of business risks on forming and placement of life insurance mathematical savings, and to manage them systematically so to achieve the most rational results – striving to get their optimisation. Life insurers form mathematical saving within the scope of estimated current value of all future insurance company liabilities, based on concluded contracts on insurance reduced by current estimated value of future premiums that will be paid by contracted insurances. In accordance with the importance of the issues this paper is focused on as well as numerous discussions which have resulted in a number of analysis and conclusions about life insurance importance, but with very few clear attitudes and concrete solutions, the key question has been asked: how to identify business risks and reduce their intensity when forming and placement of life insurance mathematical savings. The purpose and basic goal of the research is to characterize relation and influence of business risks on life insurance mathematical savings. In this way set goal of the research leads to the following main hypothesis: ‘’Business risks impact forming and placement of life insurance mathematical savings.’’ This research has analysed and synthesized present theoretical knowledge about life insurance mathematical savings and according to both the knowledge and empiric research the characteristics of the system for forming and placement of life insurance mathematical savings in Bosnia and Herzegovina has been determined. This paper is also trying to indicate the need for more active approach to life insurances emphasizing their basic segment, mathematical saving. Life insurers in Bosnia and Herzegovina face a special problem and that is transparency and data base availability. Development of life insurance in BiH has to follow and use the experience of life insurers in developed countries and make preconditions for more effective business operations and faster approaching to life insurance systems in European Union. Changeable and insecure conditions of business operations impose the need to apply advanced risk assessment methods together with fulfilment of demands for stable and profitable business. For successful monitoring of business risks impacts on forming and placement of mathematical saving, in addition to the changes within the insurance companies, it is necessary to develop sustainable institutional framework that will accept experiences and good practices of life insurances in developed countries in the world.