Abstract:
The insurance market plays a crucial role in supporting national economic stability and
growth. It does this by offering financial protection, enhancing risk management, and
strengthening the economy’s overall resilience. It acts as a shield for individuals,
corporations, and governments by providing coverage against numerous hazards, including
health, property, and liability. The COVID-19 pandemic had a significant effect on the
insurance markets of the Western Balkan countries exposing vulnerabilities and prompting
revolutionary change in these economies. Additionally, the COVID-19 pandemic's impact
was observed across various sectors, including the financial and insurance industries. This
thesis aims to assess the economic impact of key indicators, such as: inflation, interest
rates, economic growth and unemployment on gross premiums in the insurance markets of
Albania, Kosovo, and North Macedonia. By comparing the economic indicators of these
three countries, this study provides valuable insights into regional trends. The association
between economic growth and insurance sector growth is investigated using a panel data
approach that includes economic indicators from these nations between 2014 and 2024.
For this study, it is used quantitative method to analyze numerical data, identify
relationships between variables and random effect model. The analysis suggests that price
stability and higher deposit rates are conducive to the faster development of the insurance
market. This study aims to establish a foundational basis for future research on the subject.