Tag: G22

MAPPING THE PSYCHOLOGICAL LANDSCAPE OF SOCIAL PREFERENCES AND ATTITUDES TOWARDS VOLUNTARY INSURANCE PRODUCTS IN THE WESTERN BALKAN REGION

Ardita TODRI

Associate Professor, University of Elbasan

ardita.todri@uniel.edu.al

Imelda SEJDINI

Associate Professor, University of Elbasan

imelda.sejdini@uniel.edu.al

Petraq PAPAJORGJI

Professor, Proinfinit Consulting Tirana

petraq@gmail.com

Christos Ap. LADIAS

Professor, Regional Science Inquiry Journal, Greece

Ladias@rsijournal.eu

Abstract

This study investigates the factors affecting demand for voluntary life and non-life insurance in the Western Balkan region, focusing on age and gender preferences. Using the Mind Genomics technology in an online experiment, 2,448 participants from Albania, Bosnia-Herzegovina, Montenegro, North Macedonia, Serbia, and Kosovo provided insights. The research identified four meaningful categories of interest. The most preferred insurance products across all demographics were those for livestock, crops, agricultural tools, machinery, and motor vehicle liability. Additionally, pension plans were noted as promising for retirement income planning. The study suggests that financial institutions should tailor their awareness strategies to these preferences.

Keywords: age, gender, mind genomics, preferential voluntary insurance products, Western Balkan region

JEL classification: C3, G22, G52

 pp. 131-142

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ARTIFICIAL INTELLIGENCE WAVES IN FINANCIAL SERVICES INDUSTRY: AN EVOLUTION FACTORIAL ANALYSIS

Ardita TODRI

Associate Professor, University of Elbasan

ardita.todri@uniel.edu.al

Petraq PAPAJORGJI

Professor, Proinfinit Consulting Tirana

petraq@gmail.com

Abstract

Artificial intelligence (AI) has gained prominence in the financial industry. Thus, it is particularly interesting to address the financial services where AI-based systems are mainly used, the reasoning for their use, risks, and evolution potentialities. This research explores the viewpoints of professionals inside and outside the European Union area on AI-based services in the financial industry, aiming to analyze their current position and conceptualize their evolution through an integrative method study. The analyzed data pertain to 523 professionals (out of 740 contacted) who have compiled an online questionnaire related to four study pillars, such as AI-based systems use in financial services (A), the reasoning for their use (B), their risks (C) and evolution potentialities (D). Then, we examine how AI-based systems impact the evolution of AI in financial services (D) use in financial services (A), the reasoning for their use (B), and their risks (C). The study argues that to encourage a sustainable future of AI evolution in the financial sector, the risk management approach is a crucial aspect that regulatory bodies should consider accurately. According to the field professionals’ collected opinions in this study referring to their gender and age, special attention should be paid to these risks: AI limitations in forecasting market uncertainties, their lack of ethical values and explainability, as well as their no-audited versions. Therefore, academia and field professionals recommend the establishment of regulatory standards that, compared to risk management approaches, leave enough space even for AI innovation.

Keywords: artificial intelligence, financial services industry, fintech, risk management

JEL classification: G21, G22, G23

 pp. 63-75

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INSURANCE-ECONOMIC GROWTH NEXUS – EVIDENCE FROM SELECTED WESTERN BALKAN’S COUNTRIES

Gentiana SHARKU

Prof. Assoc. Dr. Pedagogue in Finance Department, Faculty of Economy, University of Tirana

gentianasharku@feut.edu.al

Etleva BAJRAMI

Prof. Assoc. Dr. Pedagogue in Finance Department, Faculty of Economy, University of Tirana

etlevabajrami@feut.edu.al

Abstract

The insurance-growth nexus has attracted the attention of many academics and researchers, due to the huge potential the insurance industry constitutes for the economic development of developed and developing countries as well. The purpose of this paper is to investigate the impact the insurance industry has on economic growth of emerging countries, such as the Western Balkan’s countries. The impact is studied through two indicators of insurance industry: density and penetration, and for the total, life and non-life insurance market. The authors have applied a multiple regression analysis using annual data on insurance industry and GDP per capita from 2004 to 2019. This paper has contributed in the existing literature by exploring (i) whether insurance market has a positive or negative effect on economic growth of developing countries; (ii) which of the insurance indicators explains better the impact – insurance penetration or density indicator; and (iii) which of insurance activities has the largest effect on economic development: total, life or non-life insurance. The conclusions of this paper will serve to the public and private operators to evaluate the significance that each segment of insurance industry has on the economic development and to undertake the proper policies.

Keywords: Insurance penetration, insurance density, GDP per capita

JEL classification: G22, C23, O52

 pp. 53-68

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