Non-life Insurance Market and Macroeconomic Indicators in Baltic States
Non-life Insurance Market and Macroeconomic Indicators in Baltic States

Summary/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.

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