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.