Development of the LifeInsurance Market in Kosovo
Author | Blerta Haliti Baruti |
Position | University American College Skopje |
Pages | 188-198 |
Vol. 4 No. 1
January, 2020
European Journal of Economics, Law and Social Sciences
IIPCCL Publishing, Graz-Austria
ISSN 2519-1284
Acces online at www.iipccl.org
188
Development of the Life Insurance Market in Kosovo
PhD (C.) Blerta Haliti Baruti
University American College Skopje
Abstract
The Kosovo Insurance Market has experienced a relatively positive development over the last
decade and has been characterized by ongoing reforms, especially with the new companies
by o ering new services. Currently, there are twelve insurance companies operating on the
market o ering a variety of products. The supervisory and regulatory institution, the Central
Bank of Kosovo, approves the licensing and supervision of insurance companies in the country,
based on two laws: 04/L - 018 Law on Compulsory Motor Liability Insurances and 05/L - 045
Law on Insurances.
From the research conducted by the Insurance Association of Kosovo, it has come to the
conclusion that both forms of insurance are developed: life insurance and non-life insurance,
with the la er dominating the market. The insurance market in Kosovo today is quite
consolidated and has su cient fi nancial and professional capacities to provide various
insurance coverage to protect citizens and their businesses from di erent events whether they
are natural disasters or insurance on health, life, property, responsibilities, various accidents
etc. However, it should be noted that there are still challenges ahead to overcome and achieve
even more qualitative services, further enhancement of security o ers and contemporary
products, methods and ways forward of management to achieve European standards.
Through this study we have come out with exploration to see which factors are a ecting
Kosovo’s demand for life insurance and how insurance companies can design policies that
address the demands of costumers for life insurance policies?
Therefore, we have considered a brief history of the development of the insurance market,
the progress of this market during the last decade, especially in voluntary insurance products
such as life insurance. Our analysis is gathered on statistical and qualitative data through the
study of the theories on life insurance development in other countries. Further, for the empirical
analysis, we have used secondary data from Center Bank of Kosovo, Insurance Companies
and Association Insurance of Kosovo. Also, we have conducted an interview with a manager
of sell and marketing department from insurance company Illyria Life, to try and get a be er
understanding of the issue at hand. The identifi cation of these factors would enable insurance
companies to design policies that tackle the demands of consumers for life insurance policies.
Keywords: Insurance Companies; Life Insurance, Development.
Introduction
Thinking about insurance is o en oriented technical considerations and business
exchange. And yet, in a modern economy, the insurance business is important and
deserves focuses on understanding its environment and its interactions with other
sectors of the economy.
During the last decade the insurance market activities have been on a constant
increase, gaining a ention and giving larger economic impact.
In Kosovo, one can consider that the insurance market is consolidated by o ering
To continue reading
Request your trial