The main factors affected the insurance market in albania and their impact on increasing voluntary insurance premiums

Abstract This paper analyses the insurance market in Albania, including its problems and ways of solutions. First of, it will be a briefly introduction of the market structure and the historical accomplishments of its segments, in order to identify the most dominated one. The insurance market is generally known as one of the most fundamentals divisions in financial market, as a whole. Insurance market development in Albania has started fairly late, compared to other countries in the region and consequently has not got the same performing as other financial institutions (banking system). Specifically, there are only nine companies which operate inside our country territory, which simultaneously compose the entire Albanian insurance market, offering both main services (life and non life insurance). The purpose of this paper is to determine the factors that have contributed to the increasing of voluntary insurance premiums based on simple regression analysis of the factors, as well as identification of the problems that have accompanied the market over the years. Research question raised is: Which are the main factors that have affected the increase of gross written voluntary premiums insurance in Albania? Hypothesis: The main factors that have influenced the development of the insurance market have been, the gross domestic product (GDP), low and regulation and also insurance lifespan. Methodology: Based on the literature review of the insurance market are being analyzed the main factors that influence on the growth of market insurance through a graphical and factor analysis