Arsić, Milojko University of Belgrade, Faculty of Economics and Business eng LONG-TERM DETERMINANTS OF INSURANCE DEVELOPMENT IN CEE COUNTRIES The development of insurance is influenced by macroeconomic, demographic, institutional and cultural factors. Key macroeconomic factors that influence the level of insurance development are GDP per capita, financial market development and economic inequality143. According to empirical research, real GDP per capita has the strongest connection with the long-term development trend and level of insurance development144. Faster GDP growth implies faster growth of the insurance sector, and a higher level of GDP per capita implies a higher level of insurance development. There is some evidence that the relationship between GDP and the insurance sector is causal, that is, that GDP growth causes the development of insurance145. Due to the strong connection between the dynamics and level of GDP per capita with other macroeconomic variables, such as earnings per employee, property value per capita, development of the financial market, etc., GDP can be interpreted as a proxy variable that reflects the influence of several other macroeconomic variables relatively well. The relationship between macroeconomic factors and insurance is two-sided - macroeconomic factors have a key influence on the level of development of insurance, but insurance also has a positive effect on economic activity, and thus on the level of income, employment, and the speed of property accumulation146. The impact of macroeconomic factors on the insurance sector is partly realised through interaction with other factors, such as the development of institutions, demographic and cultural factors. This research is supported by the Ministry of Science, Technological Development and Innovation of the Republic of Serbia by the Decision on the transfer of funds to finance the scientific research work of teaching staff at faculties in 2024, No. 451-03-65/2024-03/200097 of 5 February 2024. https://phaidrabg.bg.ac.rs/o:35869 ISBN: 978-86-403-1836-5 http://creativecommons.org/licenses/by-nc-nd/4.0/legalcode Keywords: insurance, development, CEE application/pdf 479131 bytes 2024 TRANSFORMATION OF THE INSURANCE MARKET - RESPONSES TO NEW CHALLENGES startpage: 47 endpage: 76 info:eu-repo/semantics/conferenceProceedings