Impact of interest rates on the life insurance market development: Cross-country evidence
Author
Abstract
Suggested Citation
DOI: 10.1016/j.ribaf.2021.101444
Download full text from publisher
As the access to this document is restricted, you may want to search for a different version of it.
References listed on IDEAS
- Hainaut, Donatien & Devolder, Pierre & Pelsser, Antoon, 2018.
"Robust evaluation of SCR for participating life insurances under Solvency II,"
Insurance: Mathematics and Economics, Elsevier, vol. 79(C), pages 107-123.
- Hainaut, D. & Devolder, P. & Pelsser, A., 2017. "Robust evaluation of SCR for participating life insurances under Solvency II," LIDAM Discussion Papers ISBA 2017011, Université catholique de Louvain, Institute of Statistics, Biostatistics and Actuarial Sciences (ISBA).
- Hainaut, Donatien & Devolder, Pierre & Pelsser, Antoon, 2018. "Robust evaluation of SCR for participating life insurances under Solvency II," LIDAM Reprints ISBA 2018011, Université catholique de Louvain, Institute of Statistics, Biostatistics and Actuarial Sciences (ISBA).
- Donghui Li & Fariborz Moshirian & Pascal Nguyen & Timothy Wee, 2007. "The Demand for Life Insurance in OECD Countries," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 74(3), pages 637-652, September.
- Alexander Braun & Hato Schmeiser & Florian Schreiber, 2017. "Portfolio Optimization Under Solvency II: Implicit Constraints Imposed by the Market Risk Standard Formula," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 84(1), pages 177-207, March.
- Marco Arena, 2008. "Does Insurance Market Activity Promote Economic Growth? A Cross‐Country Study for Industrialized and Developing Countries," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 75(4), pages 921-946, December.
- David Barr & John Campbell, "undated".
"Inflation, real interest rates and the bond market: a study of UK nominal and index-linked Government bond prices,"
CERF Discussion Paper Series
95-09, Economics and Finance Section, School of Social Sciences, Brunel University.
- Barr, David & Campbell, John, 1997. "Inflation, Real Interest Rates, and the Bond Market: A Study of UK Nominal and Index-Linked Government Bond Prices," Scholarly Articles 3163261, Harvard University Department of Economics.
- David G. Barr & John Y. Campbell, 1996. "Inflation, Real Interest Rates, and the Bond Market: A Study of UK Nominal and Index-Linked Government Bond Prices," NBER Working Papers 5821, National Bureau of Economic Research, Inc.
- von Hagen, Jürgen & Schuknecht, Ludger & Wolswijk, Guido, 2011.
"Government bond risk premiums in the EU revisited: The impact of the financial crisis,"
European Journal of Political Economy, Elsevier, vol. 27(1), pages 36-43, March.
- von Hagen, Jurgen & Schuknecht, Ludger & Wolswijk, Guido, 2009. "Government Bond Risk Premiums in the EU revisited: The Impact of the Financial Crisis," CEPR Discussion Papers 7499, C.E.P.R. Discussion Papers.
- Schuknecht, Ludger & von Hagen, Jürgen & Wolswijk, Guido, 2010. "Government bond risk premiums in the EU revisited: the impact of the financial crisis," Working Paper Series 1152, European Central Bank.
- Pradhan, Rudra P. & Arvin, Mak B. & Norman, Neville R., 2015. "Insurance development and the finance-growth nexus: Evidence from 34 OECD countries," Journal of Multinational Financial Management, Elsevier, vol. 31(C), pages 1-22.
- Mahdavi, Saeid & Sohrabian, Ahmad, 1993. "The exchange value of the dollar and the U.S. trade balance: An empirical investigation based on cointegradon and Granger causality tests," The Quarterly Review of Economics and Finance, Elsevier, vol. 33(4), pages 343-358.
- Pei‐Fen Chen & Chien‐Chiang Lee & Chi‐Feng Lee, 2012. "How does the development of the life insurance market affect economic growth? Some international evidence," Journal of International Development, John Wiley & Sons, Ltd., vol. 24(7), pages 865-893, October.
- Bernardin Akitoby & Thomas Stratmann, 2008.
"Fiscal Policy and Financial Markets,"
Economic Journal, Royal Economic Society, vol. 118(533), pages 1971-1985, November.
- Bernardin Akitoby & Thomas Stratmann, 2008. "Fiscal Policy and Financial Markets," Economic Journal, Royal Economic Society, vol. 118(533), pages 1971-1985, November.
- Mr. Bernardin Akitoby & Mr. Thomas Stratmann, 2006. "Fiscal Policy and Financial Markets," IMF Working Papers 2006/016, International Monetary Fund.
- Roberto Rigobon & Brian Sack, 2003.
"Measuring The Reaction of Monetary Policy to the Stock Market,"
The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 118(2), pages 639-669.
- Roberto Rigobon & Brian P. Sack, 2001. "Measuring the reaction of monetary policy to the stock market," Finance and Economics Discussion Series 2001-14, Board of Governors of the Federal Reserve System (U.S.).
- Roberto Rigobon & Brian Sack, 2001. "Measuring the Reaction of Monetary Policy to the Stock Market," NBER Working Papers 8350, National Bureau of Economic Research, Inc.
- W.N.W Azman‐Saini & Peter Smith, 2011.
"Finance And Growth: New Evidence On The Role Of Insurance,"
South African Journal of Economics, Economic Society of South Africa, vol. 79(2), pages 111-127, June.
- Azman-saini, W.N.W & Smith, Peter, 2010. "Finance and growth: new evidence on the role of insurance," MPRA Paper 65836, University Library of Munich, Germany.
- John Y. Campbell & N. Gregory Mankiw, 1989.
"Consumption, Income, and Interest Rates: Reinterpreting the Time Series Evidence,"
NBER Chapters, in: NBER Macroeconomics Annual 1989, Volume 4, pages 185-246,
National Bureau of Economic Research, Inc.
- John Y. Campbell & N. Gregory Mankiw, 1989. "Consumption, Income, and Interest Rates: Reinterpreting the Time Series Evidence," NBER Working Papers 2924, National Bureau of Economic Research, Inc.
- repec:fth:harver:1435 is not listed on IDEAS
- Beenstock, Michael & Dickinson, Gerry & Khajuria, Sajay, 1986. "The determination of life premiums: An international cross-section analysis 1970-1981," Insurance: Mathematics and Economics, Elsevier, vol. 5(4), pages 261-270, October.
- Nathan Foley‐Fisher & Bernardo Guimaraes, 2013.
"U.S. Real Interest Rates and Default Risk in Emerging Economies,"
Journal of Money, Credit and Banking, Blackwell Publishing, vol. 45(5), pages 967-975, August.
- Nathan Foley-Fisher & Bernardo Guimaraes, 2013. "U.S. Real Interest Rates and Default Risk in Emerging Economies," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 45(5), pages 967-975, August.
- Nathan Foley-Fisher & Bernardo Guimaraes, 2009. "US Real Interest Rates and Default Risk in Emerging Economies," CEP Discussion Papers dp0952, Centre for Economic Performance, LSE.
- Nathan Foley-Fisher & Bernardo Guimarães, 2012. "U.S. real interest rates and default risk in emerging economies," International Finance Discussion Papers 1051, Board of Governors of the Federal Reserve System (U.S.).
- Foley-Fisher, Nathan & Guimaraes, Bernardo, 2009. "US real interest rates and default risk in emerging economies," LSE Research Online Documents on Economics 28683, London School of Economics and Political Science, LSE Library.
- Foley-Fisher, Nathan & Guimarães, Bernardo de Vasconcellos, 2012. "US real interest rates and default risk in emerging economies," Textos para discussão 295, FGV EESP - Escola de Economia de São Paulo, Fundação Getulio Vargas (Brazil).
- Alexander Braun & Hato Schmeiser & Florian Schreiber, 2018. "Return on Risk-Adjusted Capital Under Solvency II: Implications for the Asset Management of Insurance Companies," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 43(3), pages 456-472, July.
- Olasehinde-Williams, Godwin & Balcilar, Mehmet, 2020. "Examining the Effect of Globalization on Insurance Activities in Large Emerging Market Economies," Research in International Business and Finance, Elsevier, vol. 53(C).
- Mike Adams & Jonas Andersson & Lars-Fredrik Andersson & Magnus Lindmark, 2009. "Commercial banking, insurance and economic growth in Sweden between 1830 and 1998," Accounting History Review, Taylor & Francis Journals, vol. 19(1), pages 21-38.
- Brock, Philip L. & Rojas Suarez, Liliana, 2000. "Understanding the behavior of bank spreads in Latin America," Journal of Development Economics, Elsevier, vol. 63(1), pages 113-134, October.
- Rudra P. Pradhan & Saurav Dash & Rana Pratap Maradana & Manju Jayakumar & Kunal Gaurav, 2017. "Insurance market density and economic growth in Eurozone countries: the granger causality approach," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 3(1), pages 1-24, December.
- Thorsten Beck & Ian Webb, 2003. "Economic, Demographic, and Institutional Determinants of Life Insurance Consumption across Countries," The World Bank Economic Review, World Bank, vol. 17(1), pages 51-88, June.
- Pradhan, Rudra P. & Arvin, B. Mak & Norman, Neville R. & Nair, Mahendhiran & Hall, John H., 2016. "Insurance penetration and economic growth nexus: Cross-country evidence from ASEAN," Research in International Business and Finance, Elsevier, vol. 36(C), pages 447-458.
- Catalan, Mario & Impavido, Gregorio & Musalem, Alberto R., 2000. "Contractual savings or stock market development - Which leads?," Policy Research Working Paper Series 2421, The World Bank.
- Impavido, Gregorio & Musalem, Alberto R., 2000. "Contractual savings, stock, and asset markets," Policy Research Working Paper Series 2490, The World Bank.
- International Monetary Fund, 2011. "Possible Unintended Consequences of Basel III and Solvency II," IMF Working Papers 2011/187, International Monetary Fund.
- Balcilar, Mehmet & Gupta, Rangan & Lee, Chien-Chiang & Olasehinde-Williams, Godwin, 2020. "Insurance and economic policy uncertainty," Research in International Business and Finance, Elsevier, vol. 54(C).
- Granger, C W J, 1969. "Investigating Causal Relations by Econometric Models and Cross-Spectral Methods," Econometrica, Econometric Society, vol. 37(3), pages 424-438, July.
- Fernández-Amador, Octavio & Gächter, Martin & Larch, Martin & Peter, Georg, 2013. "Does monetary policy determine stock market liquidity? New evidence from the euro zone," Journal of Empirical Finance, Elsevier, vol. 21(C), pages 54-68.
- Kyal Berends & Robert McMenamin & Thanases Plestis & Richard J. Rosen, 2013. "The sensitivity of life insurance firms to interest rate changes," Economic Perspectives, Federal Reserve Bank of Chicago, vol. 37(Q II), pages 47-78.
- Alexander Braun & Przemysław Rymaszewski & Hato Schmeiser, 2011. "A Traffic Light Approach to Solvency Measurement of Swiss Occupational Pension Funds," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 36(2), pages 254-282, April.
- Badaoui, Mohamed & Fernández, Begoña, 2013. "An optimal investment strategy with maximal risk aversion and its ruin probability in the presence of stochastic volatility on investments," Insurance: Mathematics and Economics, Elsevier, vol. 53(1), pages 1-13.
- Liyan Han & Donghui Li & Fariborz Moshirian & Yanhui Tian, 2010. "Insurance Development and Economic Growth*," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 35(2), pages 183-199, April.
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
Cited by:
- Seyed Farshid Ghorashi & Maziyar Bahri & Atousa Goodarzi, 2024. "Developing and comparing machine learning approaches for predicting insurance penetration rates based on each country," Letters in Spatial and Resource Sciences, Springer, vol. 17(1), pages 1-29, December.
Most related items
These are the items that most often cite the same works as this one and are cited by the same works as this one.- Rudra P. Pradhan, Mak B. Arvin, John H. Hall and Neville R. Norman, 2017. "Insurance Market Development and Macroeconomic Interactions in Twenty-Six Countries," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 42(4), pages 23-57, December.
- Pradhan, Rudra P. & Arvin, Mak B. & Nair, Mahendhiran & Bennett, Sara E., 2020. "Unveiling the causal relationships among banking competition, stock and insurance market development, and economic growth in Europe," Structural Change and Economic Dynamics, Elsevier, vol. 55(C), pages 74-87.
- Rudra P. Pradhan & Saurav Dash & Rana Pratap Maradana & Manju Jayakumar & Kunal Gaurav, 2017. "Insurance market density and economic growth in Eurozone countries: the granger causality approach," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 3(1), pages 1-24, December.
- Rudra P. Pradhan & Mak B. Arvin & Sahar Bahmani & Sara E. Bennett & John H. Hall, 2017. "Insurance–growth nexus and macroeconomic determinants: evidence from middle-income countries," Empirical Economics, Springer, vol. 52(4), pages 1337-1366, June.
- Pradhan, Rudra P. & Arvin, B. Mak & Norman, Neville R. & Nair, Mahendhiran & Hall, John H., 2016. "Insurance penetration and economic growth nexus: Cross-country evidence from ASEAN," Research in International Business and Finance, Elsevier, vol. 36(C), pages 447-458.
- Elena Nebolsina, 2020. "The Impact of Demographic Burden on Insurance Density," SAGE Open, , vol. 10(4), pages 21582440209, December.
- J. François Outreville, 2011. "The relationship between insurance growth and economic development - 80 empirical papers for a review of the literature," ICER Working Papers 12-2011, ICER - International Centre for Economic Research.
- Pradhan, Rudra P. & Arvin, Mak B. & Norman, Neville R., 2015. "Insurance development and the finance-growth nexus: Evidence from 34 OECD countries," Journal of Multinational Financial Management, Elsevier, vol. 31(C), pages 1-22.
- Scharner, Philipp & Sonnenberger, David & Weiß, Gregor, 2023. "Revisiting the insurance–growth nexus," Economic Analysis and Policy, Elsevier, vol. 79(C), pages 525-539.
- Relwende Sawadogo, Samuel Guerineau and Idrissa M. Ouedraogo, 2018.
"Life Insurance Development and Economic Growth: Evidence from Developing Countries,"
Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 43(2), pages 1-28, June.
- Idrissa OUEDRAOGO & Samuel GUERINEAU & Relwende SAWADOGO, 2016. "Life Insurance Development and Economic Growth: Evidence from Developing Countries," Working Papers 201616, CERDI.
- Samuel Guérineau & Relwende Sawadogo & Idrissa Ouedraogo, 2018. "Life insurance development and economic growth: Evidence from developing countries," Post-Print hal-02009214, HAL.
- Idrissa Ouedraogo & Samuel Guérineau & Relwende Sawadogo, 2016. "Life Insurance Development and Economic Growth: Evidence from Developing Countries," Working Papers halshs-01385002, HAL.
- Idrissa Ouedraogo & Samuel Guérineau & Relwende Sawadogo, 2016. "Life Insurance Development and Economic Growth: Evidence from Developing Countries," CERDI Working papers halshs-01385002, HAL.
- Mehmet Balcilar & Rangan Gupta & Chien-Chiang Lee & Godwin Olasehinde-Williams, 2020.
"Insurance-growth nexus in Africa,"
The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 45(2), pages 335-360, April.
- Mehmet Balcilar & Rangan Gupta & Chien-Chiang Lee & Godwin Olasehinde-Williams, 2018. "Insurance-Growth Nexus in Africa," Working Papers 201801, University of Pretoria, Department of Economics.
- Pradhan, Rudra P. & Arvin, Mak B. & Nair, Mahendhiran & Hall, John H. & Gupta, Atul, 2017.
"Is there a link between economic growth and insurance and banking sector activities in the G-20 countries?,"
Review of Financial Economics, Elsevier, vol. 33(C), pages 12-28.
- Rudra P. Pradhan & Mak B. Arvin & Mahendhiran Nair & John H. Hall & Atul Gupta, 2017. "Is there a link between economic growth and insurance and banking sector activities in the G‐20 countries?," Review of Financial Economics, John Wiley & Sons, vol. 33(1), pages 12-28, April.
- J. François Outreville, 2013. "The Relationship Between Insurance and Economic Development: 85 Empirical Papers for a Review of the Literature," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 16(1), pages 71-122, March.
- Wanat, Stanisław & Papież, Monika & Śmiech, Sławomir, 2016. "Insurance Market Development and Economic Growth in Transition Countries: Some new evidence based on bootstrap panel Granger causality test," MPRA Paper 69051, University Library of Munich, Germany.
- Mehmood, Bilal & Shahbaz, Muhammad & Jiao, Zhilun, 2023. "Do Muslim economies need insurance to grow? Answer from rigorous empirical evidence," The Quarterly Review of Economics and Finance, Elsevier, vol. 87(C), pages 346-359.
- Lee, Chien-Chiang & Chiu, Yi-Bin & Chang, Chi-Hung, 2013. "Insurance demand and country risks: A nonlinear panel data analysis," Journal of International Money and Finance, Elsevier, vol. 36(C), pages 68-85.
- Su-Yin Cheng & Han Hou, 2022. "Financial development, life insurance and growth: Evidence from 17 European countries," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 47(4), pages 835-860, October.
- Lee, Chien-Chiang & Lee, Chi-Chuan & Chiu, Yi-Bin, 2013. "The link between life insurance activities and economic growth: Some new evidence," Journal of International Money and Finance, Elsevier, vol. 32(C), pages 405-427.
- Jan Janku & Ondrej Badura, 2021. "Non-linear Effects of Market Concentration on the Underwriting Profitability of the Non-life Insurance Sector in Europe," Working Papers 2021/9, Czech National Bank.
- Concha, Ángela & Taborda, Rodrigo, 2014.
"Insurance use and economic growth in Latin America. Some panel data evidence,"
Revista Lecturas de Economía, Universidad de Antioquia, CIE, issue 81, pages 31-55, February.
- Ángela Concha & Rodrigo Taborda, 2014. "Insurance use and economic growth in Latin America. Some panel data evidence," Lecturas de Economía, Universidad de Antioquia, Departamento de Economía, issue 81, pages 31-55, Julio - D.
More about this item
Keywords
Interest rates; Life insurance markets development; Density; Penetration; Panel data; Time series;All these keywords.
JEL classification:
- G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
- G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
- E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Interest Rates: Determination, Term Structure, and Effects
Statistics
Access and download statisticsCorrections
All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:riibaf:v:58:y:2021:i:c:s0275531921000659. See general information about how to correct material in RePEc.
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ribaf .
Please note that corrections may take a couple of weeks to filter through the various RePEc services.