TREND OF PREMIUMS IN INSURANCE SECTOR IN KOSOVA COMPARISON WITH WESTERN BALKAN COUNTRIES

Abstract

Taking into account the circumstances that Kosovo has faced since the 1990s until now, we can say that
significant steps have been taken to advance the country's economic development, but it is still regarded as a country
that is not economically developed enough, with a deep negative trade balance and an unfavorable macroeconomic
policy to ensure a faster development trend, despite recent economic growth that has been insufficient to affect this.
For analysis, we took the life and non-life insurance sector, which turns out to be undeveloped and participates in the
financial sector with only 2.7%, so it is a symbolic indicator that speaks for itself about the development of the
insurance sector. This industry is characterized by a low level of development, and the main motive is to analyze the
development trend of this sector while comparing it with the countries of the region.The purpose of this paper is to
identify and examine gross written premiums in the insurance sector in the Western Balkans. In this paper, we will
analyze the trend of the gross written premium in the insurance sector in Kosova compared to the countries of the
Western Balkans. The sample contains data such as the number of inhabitants, the total gross income at country
level, the income per capita, the gross written premium, the rate of insurance density, and the penetration rate for the
countries of Kosova, Albania, Bosnia and Herzegovina, North Macedonia, Montenegro, and Serbia for the period
2010–2021.The empirical research is done by collecting data from the official reports published on an annual basis
by the financial institutions of the countries in the region as well as the World Bank. A research paper is classified as
an exploratory, descriptive, or explanatory study. Comparative analysis and descriptive statistics will be the
methodologies applied in this paper.The analysis of these data shows that the development of the insurance market
in Kosova and the countries of the Western Balkans from 2010 onwards, despite the new market entries of branches
of large groups, has not been characterized by real strategies for the exploration of new segments of the market and
an increase in demand. The insurance sector needs to be influenced by strategic approaches that move from
transaction value to product lifetime value and from product life cycle to customer life cycle. The commitment to
create an attractive environment for business initiatives and foreign investments, in addition to being a constant
challenge for underdeveloped economies, should also be a strategic goal.