The development of the insurance market in the Republic of Macedonia

Rufi Osmani, Merdije Imeri


The aim of this paper is to measure the level of the development of insurance in Macedonia and reveal the factors that have influenced this insufficient level of the development of the insurance market compared to other Western Balkan countries and EU countries.

The deep political and socio-economic transformations in countries in transition since the 1990s within the framework of structural reforms imposed essential changes in the system of social insurance as the foundation of the insurance market in general. The successful implementation of insurance in life, economy, business and other public spheres based on the regulations of the market economy in countries with low development levels, imposes the need to understand and learn more the practices of insurance markets based on the most successful experiences from more developed countries of the region, which have already become members of the EU.

Financial instruments of the insurance market have great influence on the level of financial markets in developed economies and they also influence the performance of individuals, the business sector and the political sector. Such a conclusion could partially apply to Western Balkan countries and especially Macedonia as a candidate country for accessing the EU.

The period to be analyzed (2007 – 2013) is identified with the beginning and the ending of the global financial crisis as well as the period when the sector of insurance mainly owned by foreign shareholders in Macedonia was consolidated on the legal aspect.

The paper analyzes the performance of participants in the insurance market as part of the financial market with an insufficient development level in Macedonia compared to the EU countries.

The flaws of the paper are identified through the fact that the performance of the analyzed insurance companies has partially been compared to Croatia and to the EU average, but not to the insurance market in the majority of Western Balkan countries and other countries with similar economic development level, especially with regard to the financial and insurance markets.


Insurance market, financial market, life insurance, Macedonia, the EU


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