Analysis of life insurance premium in regard to net income as an influencing factor: The case of the Republic of Serbia

During the last few years, life insurance market in Serbia has had an upward trend, however, it still significantly falls back in comparison to developed European countries. This paper presents a projection of life insurance premium on the basis of linear trend parameters and correlation degree between the average net income and the amount of life insurance premium. Additionally, the necessity of intense development of life insurance market is emphasized. The results indicate that development rate of life insurance market in the Republic of Serbia is not sufficient and that there is a significant influence of net income on the amount of life insurance premium.