The role of the insurance funds in the economy with special reference to the Republic of Macedonia

The insurance sector occupies a significant place in the global
financial system because these companies emerge as managers of pension
funds, investment funds, holders of the insurance sector, etc. Comparative
analyses of the insurance sector worldwide show that the insurance
companies are a relatively small sectors with a high share of foreign capital.
From the statistic data it is evident that the insurance market, despite the
negative effects of the global economic crisis, has a trend of increasing
insurance premiums for about 10.6%. Unlike developed countries, in
transition economies the rate of penetration is 17.6%, which is expressed as
a share of the value of insurance premiums in the GDP, shows the
importance of the insurance sector in terms of total economic activity in a
certain country. In this paper we will discuss the limiting factors for
development of financial markets and institutions such as: the transition
process, the painful and long inside privatization, the non-integrity of the
Macedonian financial market with the international market and others.
Further on, we will give the pathways for development of domestic financial
markets and consequently, of the insurance sector.
Keywords: financial markets, financial institutions, insurance companies,
premium