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Factors affecting the insurance sector development: Evidence from Albania

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Listed:
  • Eglantina Zyka
  • Elena Myftaraj (Tomori)

Abstract

In this paper we explore factors potentially affecting the size of Albanian insurance market, over the period 1999 to 2009. The results of co-integration regression show that GDP and fraction urban population, both one lagged value, size of population and paid claims, both at contemporary value, have significant positive effect on aggregate insurance premium in Albania while the market share of the largest company in the insurance market, one lagged value, has significant negative effect on aggregate insurance premiums. Granger causality test shows statistically significance contribution of GDP growth to insurance premium growth, GDP drives insurance premium growth but not vice versa. The Albanian insurance market is under development, indicators as: insurance penetration, premium per capita, ect are still at low level and this can justify the insignificant role of the insurance in the economy.

Suggested Citation

  • Eglantina Zyka & Elena Myftaraj (Tomori), 2014. "Factors affecting the insurance sector development: Evidence from Albania," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 17(51), pages 171-188, March.
    • Handle: RePEc:rej:journl:v:17:y:2014:i:51:p:171-188
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    References listed on IDEAS

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    Cited by:

    1. Gentiana Sharku, Evis Kumi, 2021. "Does insurance market impact the economic growth? Evidence from Albania," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 18(2), pages 267-289, December.
    2. Burmaa Galaa & Enkhamgalan Byambajav & Kai-yin Woo & Amarbayasgalan Myagmar-Ochir & Saruultuya Tsendsuren, 2024. "Long-run relationship between insurance premiums and driving factors in Mongolia," Advances in Decision Sciences, Asia University, Taiwan, vol. 28(2), pages 116-136, June.

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    More about this item

    Keywords

    nsurance sector; factors; cointegration regression; Albania;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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