ANALYSIS OF PRODUCTIVITY IN FINANCIAL ACTIVITIES AND INSURANCE SECTOR IN MACEDONIA

Abstract

The ability to transform input resources into a higher level of output resources, represented through finished products and services as outputs, is known as productivity. The efficiency of society to transform the insurance products and services offered to the final consumers and meet their needs will also lead to an increase in productivity. In our country, productivity in the insurance sector has not been sufficiently studied. The aim of this paper is to assess and analyze the changes that have occurred in the field of productivity within financial activities and insurance in Macedonia. Financial activities and insurance are among the key sectors contributing to the creation of Gross Domestic Product (GDP) in the country. Considering that the global insurance sector experienced a growth of 7.5% last year, the highest in the last fifteen years, while in our country it grew by 12.2%, particular attention should be given to the results emerging from the insurance sector as a component interlinked with the financial sector. In Macedonia, insurance is strictly regulated for companies involved in life and non-life insurance. However, this research does not distinguish between them, as the data is presented collectively with financial activities. This study examines the relationship between Gross Domestic Product (GDP), GDP in the Financial Sector and Insurance, and the number of employees in the insurance sector. Financial activities and insurance are characterized by higher labor productivity compared to other sectors, which have lower productivity. It has been determined that to increase labor productivity in financial activities and insurance, their participation in the GDP must be increased. Using various methods of data analysis, several conclusions have been reached, which form the basis for further research. In the digital age, future attention should be focused on technological advancements and tools arising from them, as they will have a significant impact on both the financial sector and insurance, particularly on labor productivity and employment.