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.