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Montenegrin insurance market is in a low level of development 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 influenced purchase of life insurance.

Factors Influencing Life Insurance Market Development in Montenegro