IDEAS home Printed from https://ideas.repec.org/a/vrs/zirebs/v27y2024i1p155-176n1008.html
   My bibliography  Save this article

What Drives Property Insurance Demand in Croatia?

Author

Listed:
  • Krišto Jakša

    (University of Zagreb, Faculty of Economics and Business, Zagreb, Croatia.)

  • Kedžo Margareta Gardijan

    (University of Zagreb, Faculty of Economics and Business, Zagreb, Croatia.)

  • Škrinjarić Tihana

    (Bank of England, London, United Kingdom.)

Abstract

Property insurance is an important part of risk management, insurance coverage and vehicle of catastrophic losses financing. In developed countries, property insurance plays an important role in the structure of non-life premium, while in developing markets, such as Croatian, property insurance penetration is rather low. Unfortunately, the recent earthquakes in Zagreb (Croatia) and the surrounding area in 2020 have once again highlighted a large protection gap, resulting in a dominant role of government in financing catastrophic losses. The aim of this paper is to discuss and investigate the factors that determinate property insurance demand in Croatia. Using the VAR (Vector AutoRegression) methodology extended via spillover index approach, we analyse a comprehensive data set ranging from the economic, financial, social to insurance indicators. The conclusions of this research point that some of the expected drivers of insurance demand such as mortgage loans, consumer confidence and loss experience, are not important in Croatia, and that property insurance is dominantly driven by economic development.

Suggested Citation

  • Krišto Jakša & Kedžo Margareta Gardijan & Škrinjarić Tihana, 2024. "What Drives Property Insurance Demand in Croatia?," Zagreb International Review of Economics and Business, Sciendo, vol. 27(1), pages 155-176.
    • Handle: RePEc:vrs:zirebs:v:27:y:2024:i:1:p:155-176:n:1008
    DOI: 10.2478/zireb-2024-0008
    as

    Download full text from publisher

    File URL: https://doi.org/10.2478/zireb-2024-0008
    Download Restriction: no
    File URL: https://libkey.io/10.2478/zireb-2024-0008?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    property insurance demand; Croatian insurance market; VAR model; spillover effect;
    All these keywords.

    JEL classification:

    • G52 - Financial Economics - - Household Finance - - - Insurance
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models

    Statistics

    Access and download statistics

    Corrections

    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:vrs:zirebs:v:27:y:2024:i:1:p:155-176:n:1008. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Peter Golla (email available below). General contact details of provider: https://www.sciendo.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.