Analysis of Life Insurance Premium in Regard to Net Income as an Influencing Factor– the Case of the Republic of Serbia

Olja Munitlak Ivanović; Neda Raspopović; Petar Mitić; Slobodan Rakić

doi:10.5937/industrija41-4278

Olja Munitlak Ivanović Educons University, Faculty of Business Economy
Neda Raspopović Univerzitet Educons Fakultet poslovne ekonomije Sremska Kamenica
Petar Mitić Educons University, Faculty of Business Economy
Slobodan Rakić Educons University, Faculty of Business Economy

DOI: https://doi.org/10.5937/industrija41-4278

Keywords: Market, Insurance, Income, Insurance market, Life insurance,

Abstract

In current business conditions, insurance market in the Republic of Serbia notes positive but relatively slow growing trend. During the last few years, life insurance market in Serbia has an upward trend, however, it still significantly falls back in comparison to developed European countries. Insufficient development of life insurance sector is in direct relation to insufficient economic development, weak financial market, high unemployment rate and poor implementation of economic reforms. Additionally there is a problem due to the lack of both quality and quantity of education with insufficient basic knowledge of potentials that this type of insurance offers. The aim of this paper is to present the projection of life insurance premium on the basis of linear trend parameters and correlation degree between average net income and the amount of life insurance premium and to emphasize the necessity of intense development of life insurance market.

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