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Factors Influencing Non-Life Insurance Demand: Case of Lithuania

Author

Listed:
  • Malakauskienė Karolina

    (Product manager, Luminor bank, Lithuania)

  • Lakštutienė Aušrinė

    (Assoc., Prof., Kaunas University of Technology, Lithuania)

  • Witkowska Justyna

    (Assoc., Prof., University of Warmia and Mazury in Olsztyn, Poland)

Abstract

This paper studies factors affecting non-life insurance demand in Lithuania. The study identified variables that are important in analyzing the demand for non-life insurance and were applied in estimating multivariate VAR, Classical Granger, and Toda-Yamamoto causalities. Lithuania’s case showed three significant causal relationships: positive - between non-life insurance demand and inflation and loss probability, negative - between density and short-term interest rate. Loss probability and short-term interest rate have been shown to be significant across all models. Inflation was deemed to be the effect of shift in demand rather than the cause.

Suggested Citation

  • Malakauskienė Karolina & Lakštutienė Aušrinė & Witkowska Justyna, 2022. "Factors Influencing Non-Life Insurance Demand: Case of Lithuania," Management Theory and Studies for Rural Business and Infrastructure Development, Sciendo, vol. 44(3), pages 244-253, September.
    • Handle: RePEc:vrs:mtrbid:v:44:y:2022:i:3:p:244-253:n:12
    DOI: 10.15544/mts.2022.25
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    non-life insurance demand; VAR; Granger Causality;
    All these keywords.

    JEL classification:

    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies

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