An empirical analysis of the causality relationship between insurance and economic growth

Worldwide, the role of the insurance industry has grown in importance. A world without insurance would be much less developed and much less stable. Furthermore, a large number of economic activities would not take place without a reliable insurance mechanism. Therefore, insurance is an important prerequisite for stimulating economic growth. The purpose of this study is to empirically assess the causality relationship between insurance and economic growth in 5 developed countries where we can notice differences in the activity of the insurance market. The relationship between the insurance industry and economic growth is complex and country specific, depending on social, cultural, economic and legal factors.