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Impact of economic factors on life insurance development in Western Balkan Countries

Author

Listed:
  • Milijana Novoviæ Buriæ

    (University of Montenegro, Faculty of Economics, Jovana Tomaševiæa 37, 81 000 Podgorica)

  • Julija Ceroviæ Smoloviæ

    (University of Montenegro, Faculty of Economics, Jovana Tomaševiæa 37, 81 000 Podgorica)

  • Milena Lipovina Božoviæ

    (University of Montenegro, Faculty of Economics, Jovana Tomaševiæa 37, 81 000 Podgorica)

  • Ana Laleviæ Filipoviæ

    (University of Montenegro, Faculty of Economics, Jovana Tomaševiæa 37, 81 000 Podgorica)

Abstract

Life insurance market in Western Balkan countries is underdeveloped compared to other European countries, but in the recent decade it has been developing moderately under the influence of various factors, primarily economic, but also demographic, political and other. The aim of this manuscript is to analyze and indicate the most significant economic factors that have important influence on life insurance products purchase. In order to prove the hypothesis established in the manuscript, panel data analysis is used to examine the impact of GDP, unemployment rate, wages and interest rate on total life premium in Western Balkans in the period 2005 to 2015. The results of the analysis showed that the above-mentioned economic factors mainly affect total life premium in countries of the Western Balkans. GDP and wages have a significant and positive impact on demand for life insurance, while the impact of unemployment rate and interest rate is negative.

Suggested Citation

  • Milijana Novoviæ Buriæ & Julija Ceroviæ Smoloviæ & Milena Lipovina Božoviæ & Ana Laleviæ Filipoviæ, 2017. "Impact of economic factors on life insurance development in Western Balkan Countries," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 35(2), pages 331-352.
    • Handle: RePEc:rfe:zbefri:v:35:y:2017:i:2:p:331-352
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    life insurance market; economic factors; insurance premium; panel data model; the Western Balkans;
    All these keywords.

    JEL classification:

    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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