Do life and non-life insurances affect the economic growth in developed and developing countries?

چکیده مقاله

Insurance market activity, both as a financial intermediary and as supplier of compensation and risk transfer, by providing various risks for more effective management and flowing of domestic savings, will help economic growth. In the recent decade, the insurance market activity has grown more quickly especially in emerging markets in which the process of liberalization and fiscal integrity is happening. This has led to questions about its impact on economic growth. 

This paper examines whether there is a causal relationship between insurance market activity (life insurance and non-life insurance) and economic growth. In this study, a sample of 55 developed and developing countries including Iran is selected. The used model is a dynamic panel model which is estimated using a two-step generalized method of moments (GMM) for combined data for the period 2000-2014.

The results indicate that both life and non-life insurances affect the economic growth in developed and developing countries. Results also show that there is a one-way causality relation from life premiums per capita and total premiums per capita to economic growth of developed countries. Moreover, there is a two-way causality relation between non-life premiums per capita and economic growth in this group of countries. Furthermore, there is a one-way causality relation from life premiums per capita and total premiums per capita to economic growth of developing countries.

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