1. The document examines the role of insurance in the economy of North Macedonia. It analyzes the relationship between insurance development and GDP over the period 2008-2018. 2. There is a high correlation between life insurance premiums as a percentage of GDP and GDP per capita. However, there is no significant relationship between non-life insurance premiums as a percentage of GDP and GDP per capita. 3. The results indicate that a 1 percentage point increase in life insurance premiums as a share of GDP is associated with a 191.55 USD increase in GDP per capita. In contrast, a 1 percentage point increase in non-life insurance premiums as a share of GDP is associated with a 35.85