Part Two: Insurance Sector Development And Its Effect On The Financial Markets In Developing Countries: The Case Of Kosovo

The purpose of this study is to identify the connection between the insurance market and the financial markets. More specifically to analyze the nature of insurance companies and their direct role in the economic and financial system development. This market study aims to analyze the insurance system in Kosovo by defining and analyzing its structure, the degree of concentration of insurance companies on the insurance market, their behavior towards price, number of participants, companies operating in this market, and types of products and services they provide. This paper (part two of the study) will present the secondary data from Central Bank of Kosovo, Insurance Companies, and Insurance Association of Kosovo. The analysis are performed on quantitative and qualitative data through applying theories on insurance market development in other countries. It is imported to identify the factors because it enables insurance companies to design policies that tackle the demands of consumers for voluntary insurance policies and at the same time to contribute to financial stability of Kosovo’s economy. The study aims to conclude on the main research question: Does Insurance Development affect the Financial Markets in developing countries? The expected outcome is that the insurance sector in Kosovo is an important factor for the further development of the financial system.