The dynamics of insurance sector development and economic growth

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Abstract

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.

Keywords: Insurance Industry, Financial System, Economic Growth, Kosovo

Authors’ individual contribution: The Author is responsible for all the contributions to the paper according to CRediT (Contributor Roles Taxonomy) standards.

Declaration of conflicting interests: The Author declares that there is no conflict of interest.

JEL Classification: A12, G10, G22, G52

Received: 21.03.2022
Accepted: 20.09.2022
Published online: 23.09.2022

How to cite this paper: Baruti, B. H. (2022). The dynamics of insurance sector development and economic growth. Corporate Governance and Organizational Behavior Review, 6(4), 28–42. https://doi.org/10.22495/cgobrv6i4p3