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Non-life Insurance Market and Macroeconomic Indicators in Baltic States

Author

Listed:
  • Mihaela Simionescu

    (Institute for Economic Forecasting of the Romanian Academy)

Abstract

Knowing that insurance market might be sensitive to economic evolutions, the aim of this paper is to investigate the effect of few macroeconomic indicators on non-life insurance market in the Baltic States in the period 1993-2020. The results based on panel data models and panel cointegration suggest a low impact of economic growth on non-life insurance market described by direct premium written, insurance density, insurance penetration for non-life segment. Expenditure on tertiary education has a more significant impact on non-life insurance market, while growth in unemployment rates reduces the development of this market. All in all, this study validates the hypothesis that people with higher education are more eager to buy insurance products. On the other hand, the development of this sector has not determined yet sustainable development of the Baltic economies.

Suggested Citation

  • Mihaela Simionescu, 2022. "Non-life Insurance Market and Macroeconomic Indicators in Baltic States," Bulgarian Economic Papers bep-2022-05, Faculty of Economics and Business Administration, Sofia University St Kliment Ohridski - Bulgaria // Center for Economic Theories and Policies at Sofia University St Kliment Ohridski, revised Jun 2022.
    • Handle: RePEc:sko:wpaper:bep-2022-05
    as

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    References listed on IDEAS

    as
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    4. 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.
    5. Sajid Mohy Ul Din & Arpah Abu-Bakar & Angappan Regupathi, 2017. "Does insurance promote economic growth: A comparative study of developed and emerging/developing economies," Cogent Economics & Finance, Taylor & Francis Journals, vol. 5(1), pages 1390029-139, January.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    non-life insurance market; direct premium written; insurance density; insurance penetration;
    All these keywords.

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Prediction Models; Simulation Methods

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