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Analysis of influence of macroeconomic indicators on life insurance premium in Czech Republic, Germany and US
[Analýza vlivu makroekonomických veličin na předepsané pojistné u životního pojištění v České republice, Německu a Spojených státech amerických]

Author

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  • Tomáš Kábrt

Abstract

The article deals with an impact of macroeconomic variables (GDP per capita, unemployment rate and short term interest rate) on life insurance premium in the Czech Republic, Germany and the United States. The theoretical part discusses general characteristics of the insurance market, life insurance and its importance in the Czech Republic. In empirical part is analyzed an influence of factors on life insurance premiums, using econometric models based on time series. It used a model, operating with delayed independent variables (ADL), which defines a short-term relationships between time series and an error correction model (ECM), which examines the long-term relationships between time series. It was found out that the unemployment rate affects life insurance premiums negatively, in all surveyed economies, except Germany, where its influence was positive. Short-term interest rates had a positive effect on life insurance premiums in Germany and in the United States and a negative effect in the Czech Republic. The influence of GDP per capita on life insurance premiums was positive in all surveyed countries.

Suggested Citation

  • Tomáš Kábrt, 2016. "Analysis of influence of macroeconomic indicators on life insurance premium in Czech Republic, Germany and US [Analýza vlivu makroekonomických veličin na předepsané pojistné u životního pojištění v," Český finanční a účetní časopis, Prague University of Economics and Business, vol. 2016(2), pages 49-72.
    • Handle: RePEc:prg:jnlcfu:v:2016:y:2016:i:2:id:473:p:49-72
    DOI: 10.18267/j.cfuc.473
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    References listed on IDEAS

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    1. Bernheim, B Douglas, 1991. "How Strong Are Bequest Motives? Evidence Based on Estimates of the Demand for Life Insurance and Annuities," Journal of Political Economy, University of Chicago Press, vol. 99(5), pages 899-927, October.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Life insurance; Time series; Demand; Životní pojištění; Časové řady; Poptávka;
    All these keywords.

    JEL classification:

    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies

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