The Effects of the Insurance Market in the Development of Western Balkans Countries, with Special Emphasis on Kosovo

Kukaj, Halil; Morina, Fisnik; Misiri, Valdrin

doi:10.14207/ejsd.2019.v8n2p209

Cited by 3 publications

(3 citation statements)

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“…However, the results of the GLS model data also show that there is a difference among the countries of the region in terms of FDI's impact on economic growth. From a review of the literature, it is clear that there is a substantial body of research related to FDI inflow in the countries of the Western Balkans [2,8,11,12,[16][17][18][19][20][21][22][23]. Nevertheless, there is a lack of studies examining the effect of the FDI inflow on the insurance sector in these countries.…”

Section: Literature Reviewmentioning

confidence: 99%

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The Effects of Foreign Direct Investment in the Insurance Industry in the Western Balkan Countries – A Panel Data Analysis

Berisha,

Sopi

2023

IJSDP

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The insurance industry is a solid cornerstone of the financial system, and by fostering an environment more favorable to investment, it significantly boosts economic growth. This is especially true for the Western Balkan countries, which are currently growing and joining the European Union. Developing countries can benefit from an additional avenue: the internationalization of insurance businesses through the reinsurance process. The aim of this research is to assess the potential impact of Foreign Direct Investment (FDI) on the insurance industry in the region. The research was carried out in six countries: Albania, Bosnia and Herzegovina, Montenegro, North Macedonia, Kosovo, and Serbia. Data from these countries were collected between 2004 and 2021, allowing for an analysis using panel data econometric models, namely the Fixed Effects and Random-Effects models (GLS). The findings of the economic analysis for the three independent variables indicate that FDI inflow positively affects Gross Written Premium (GWP), Insurance Assets (InsAsset), and Penetration Rate (PenetRate) at the α=0.05 significance level. Additionally, the models have demonstrated that the three variables have variations between the countries regarding the impact of FDI inflows using the Lagrange Multiplier (LM) Method -Breusch-Pagan test, at a confidence level of α=0.05. Since the econometric models for the three cases are based on the Random-Effects model (GLS Method), random effects are to blame for the variations in FDI influence between countries. The results have consequences for the insurance industry as well as regional policymakers, especially in Kosovo, who are deciding what measures to take to promote foreign direct investment.

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Section: Literature Reviewmentioning

confidence: 99%

“…In Kosovo and other countries of the region, the insurance industry remains underdeveloped compared to that of developed countries [2]. The internationalization of insurance activity through the reinsurance process constitutes an additional opportunity for developing countries.…”

Section: Introductionmentioning

confidence: 99%

The Effects of Foreign Direct Investment in the Insurance Industry in the Western Balkan Countries – A Panel Data Analysis

Berisha,

Sopi

2023

IJSDP

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“…Kjosevski points out that Western Balkan countries represent a region with great potential for the dynamic and successful growth of the life insurance sector. On the other hand, Kukaj et al (2019) show that life insurance has also great importance for economic growth in developing countries such as the Western Balkan countries.…”

Section: Literature Reviewmentioning

confidence: 99%

Impact of premium reserve on life insurance investments in the Western Balkans

Tomašević¹,

Novović-Burić²,

Kašćelan³

et al. 2021

Serb J Management

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The growing importance of life insurance in the world imposes a greater need for research in this area, particularly in the Western Balkans where the trend of growth has been closely accompanied by life insurance for the past two decades. Taking into consideration that life insurance companies are significant participants in the financial market, this research paper examines the impact of the premium reserve on the volume of financial investments of life insurance companies in Western Balkan countries, based on aggregate data on country level. In order to test its effect, linear correlation and regression models were used, based on data collected for the period 2006-2016. Additionally, comparative analysis was used to compare the position of life insurance companies in financial markets. The results obtained by applying correlation and regression analysis showed that there is a strong positive correlation between premium reserve and financial investments in all of the aforementioned countries in the region. This result is an important strategic guideline for the regulators and policymakers to make advancements in the life insurance sector as well as in the financial market of the Western Balkans.

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The dynamics of insurance sector development and economic growth

Baruti

2022

CGOBR

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Through this paper, we were able to analyze the insurance system in Kosovo by looking at its structure, the degree of concentration of insurance companies in the insurance industry, and the types of products they offer. The analysis was based on statistical and qualitative data through the studies and analysis of insurance industry development in other countries. Furthermore, secondary data from the Central Bank of Kosovo, insurance companies, and the Insurance Association of Kosovo was used for the empirical analysis. Moreover, in order to obtain more data, one survey was conducted. The survey includes a more general audience, specifically employed people. The main research question of this study was whether insurance development has some effect on the financial markets in developing countries. The analysis conducted found that the insurance industry is important for the development of the financial markets in developing countries and also was mentation in research by Cristea, Marcu, and Cârstina (2014). Additionally, the analysis for the case of Kosovo shows that macroeconomic and financial sector-related factors are important drivers for the future development of the insurance industry in Kosovo. Therefore, macroeconomic, institutional, and regulatory environments are crucial for supporting the future growth of the insurance industry in Kosovo.

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The Effects of the Insurance Market in the Development of Western Balkans Countries, with Special Emphasis on Kosovo

Cited by 3 publications

References 1 publication

The Effects of Foreign Direct Investment in the Insurance Industry in the Western Balkan Countries – A Panel Data Analysis

The Effects of Foreign Direct Investment in the Insurance Industry in the Western Balkan Countries – A Panel Data Analysis

Impact of premium reserve on life insurance investments in the Western Balkans

The dynamics of insurance sector development and economic growth

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