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Life insurance in the Western Balkan Countries is underdeveloped, but it has huge potential for development in the future. The scope of this article is to examine whether and how economic, socio- demographic, and institutional factors determine the demand for life insurance in the Western Balkans, using life insurance density and life insurance penetration as indicators of life insurance demand during 2006-2019. In order to conduct a crosscountry analysis we use panel data regression models and a feasible generalised least squares regression model. The analysis reveals that the most significant factors are income per capita and changes in the urban population. The article contributes to the existing literature by identifying the variables that affect demand for life insurance in the Western Balkans and by providing evidence for insurance operators, authorities, and governments of the respective countries to find ways to further develop the insurance market.

The state monopoly in Albanian insurance market lost its position in 1999. But only after 2005, the insurance market in Albania is significantly developed. As result of the increasing of insurance operators and the market size, the competition in insurance market has been increased. The aim of this paper is to examine the evolution of the insurance market structure in Albania. The concentration degree is measured through concentration rates CR1 and CR4 and Herfindahl-Hirschman index for the period 2005-2015. The concentration rates and HHI indexes are calculated separately for life insurance and non-life insurance activity, voluntary and compulsory insurance market, and for each class of non-life insurance: motor, property and health insurance classes. Based on the above indexes, the paper concludes that the competition in insurance market is increased over years, but the market structure type varies among different insurance activities. [ABSTRACT FROM AUTHOR]

The life insurance sector is an important sector of the economy all over the world. Life insurance provides the economy and the individuals as well, a variety of fundamental financial services. Regardless the importance it has all around the world, life insurance market in Albania is still underdeveloped comparing not only to the Western European countries, but to the region countries as well. The comparative analysis of insurance market is carried out by means of two indexes: insurance density and penetration index. The life insurance market in Albania is facing several problems which will be further explained in the paper, together with some recommendations to be taken in account by Albanian insurance companies and the Albanian government as well. [ABSTRACT FROM AUTHOR]