The Dynamics of Albanian Insurance Market and Its Importance in Economic Development

Klaudia Lipi – Faculty of Economics, Fan S. Noli University, Bulevardi Rilindasit 11,7001, Korçë, Albania

Abstract: The insurance market plays a crucial role in promoting econom­ic stability and mitigating risk within any economy. The primary objective of this research is to provide a complete understanding of the dynamics of the insurance sector in Albania, analyzing the main factors that influence its growth and development. The study uses a mixed methods approach, combining quantitative data analysis with qualitative insights drawn from expert interviews, policy documents and industry reports. Identifying the challenges, especially after the Covid-19 pandemic is a critical aspect of this study. The research identifies and assesses barriers to market potential, in­cluding limited public awareness of insurance, regulatory constraints and the impact of socio-economic factors on consumer behaviour. These chal­lenges are contrasted with opportunities such as the untapped potential of digitization and advances in technology, which could reshape the industry’s trajectory. Also, the findings of this research can serve as a valuable resource for policymakers, industry actors and researchers interested in understand­ing and contributing to the growth and development of the insurance sector in Albania. Additionally, the analysis contributes to the broader discourse on insurance market dynamics in emerging economies, shedding light on the unique challenges and opportunities such markets face.

LIMEN Conference

9th International Scientific-Business Conference – LIMEN 2023 – Leadership, Innovation, Management and Economics: Integrated Politics of Research – CONFERENCE PROCEEDINGS, Hybrid (Graz University of Technology, Graz, Austria), December 7, 2023

LIMEN Conference Proceedings published by the Association of Economists and Managers of the Balkans, Belgrade, Serbia

LIMEN Conference 2023 Conference Proceedings: ISBN 978-86-80194-78-3, ISSN 2683-6149, DOI: https://doi.org/10.31410/LIMEN.2023

Creative Commons Non Commercial CC BY-NC: This article is distributed under the terms of the Creative Commons Attribution-Non-Commercial 4.0 License (https://creativecommons.org/licenses/by-nc/4.0/) which permits non-commercial use, reproduction and distribution of the work without further permission. 

References

Akerlof, A. G. (1970). The market for “lemons”: Quality uncertainty and the market mechanism. The Quarterly Journal of Economics, 84(3), 488-500. https://doi.org/10.2307/1879431 

Black, K. (2000). Business operations and the risk management process. West Publishing Company.

Hartwig, R. (2005). The impact of catastrophes on property-casualty insurers. Journal of Risk and Insurance, 72(3), 359-394.

Hoyt, R. E. (1990). The effects of insurance fraud on the economic system. Journal of Insur­ance Regulation, 8, 304-315.

Rothschild, M., & Stiglitz, J. E. (1976). Equilibrium in competitive insurance markets: An essay on the economics of imperfect information. The Quarterly Journal of Economics, 90(4), 629-649.

Albanian Financial Supervisory Authority (AFSA). (2021, December 28). Insurance market in Albania for the period January–November. https://amf.gov.al/news.asp?id=32838 

Albanian Financial Supervisory Authority (ASFA). (2022, October 28). Insurance market in Al­bania for the period January–September. https://amf.gov.al/news.asp?id=32979 

Albanian Financial Supervisory Authority (AFSA). (2023, November 29). Insurance market in Albania for the period January–October. https://amf.gov.al/news.asp?id=43100 

Additional reading

Albanian Financial Supervisory Authority (AFSA). (n.d.). https://amf.gov.al 

Blackwell, P. H., & Rey Belyeu, J. (2008). Risk management and insurance. Financial Special­ist workbook series. National Underwriter Company.

Borch, K. (1998). The economics of uncertainty. Princeton University Press.

Dionne, G. (2013). Risk management: History, definition, and critique. Risk Management and Insurance Review, 16(2), 147-166.