Factors Influencing Life Insurance Market Development in Montenegro

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Factors Influencing Life Insurance Market Development in Montenegro 

2017 25 2

Factors Influencing Life Insurance 

Market Development in Montenegro

Milijana Novovic Buric

1*

, Maja Bacovic

1

, Julija Cerovic

1

, 

Milena Lipovina Bozovic

1

Received 22 September 2016; accepted after revision 23 January 2017

Abstract 

Montenegrin insurance market is in a low level of develop-

ment compared to developed countries, with dominant share 

of non-life insurance. There are many factors influencing the 

insufficient development of life insurance in Montenegro. This 

manuscript offers an analysis of significant factors that have 

important impact on life insurance products purchase. In order 

to prove the hypotheses established in the manuscript, based 

on the survey, chi square test of independency and regression 

analysis were carried out. Testing

 

results showed that age 

structure and education as demographic factors as well as level 

of employment as economic factor highly influence demand for 

life insurance in Montenegro while there is no evidence that 

different  trust  in  insurance  system,  gender  and  region  influ-

enced purchase of life insurance.