The relationship between insurance market and macroeconomic indicators in the Baltic states

Simionescu, Mihaela; Ulbinaitė, Aurelija

doi:10.1080/01629778.2021.1920440

Cited by 5 publications

(2 citation statements)

References 13 publications

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“…Progression of economic well-being and living standards influences either the population's faith in goods and people insurance or the insurers' premium increase. The findings are aligned with [ 34 ].…”

Section: Resultssupporting

confidence: 82%

Does economic policy uncertainty affect insurance premiums? Fresh empirical evidence

Jeris

Frances

Akter

et al. 2023

Heliyon

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Section: Resultssupporting

confidence: 82%

Does economic policy uncertainty affect insurance premiums? Fresh empirical evidence

Jeris

Frances

Akter

et al. 2023

Heliyon

View full text Add to dashboard Cite

“…The results are further confirmed at the lag of two periods, indicating significant coefficients and suggesting a persistent impact on changes in premiums. These estimation results align with the static findings obtained and the previous studies (Li et al, 2009;Singhal et al, 2020;Simionescu & Ulbinaitė, 2021). It implies that insurance companies should also anticipate the influence or lasting impact caused by the exchange rate, particularly in the non-life insurance segment.…”

Section: Dynamic Impactsupporting

confidence: 89%

Interrelationship Between Macroeconomic Variables With Insurance Premiums and Claims – Lessons For Indonesia & ASEAN

Rohman,

Ronaldo,

Siregar

2024

J. ASEAN Studies

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The insurance sector plays a crucial economic role by helping individuals and businesses manage risks and uncertainties. By transferring some of their risks to insurance companies, individuals and companies can reduce the likelihood of bankruptcy compared to bearing the risks themselves. This role has become increasingly important in recent decades, particularly due to climate change, financial crises, and the COVID-19 pandemic, leading to greater volatility in macroeconomic indicators. Understanding these potential risks is key to ensuring the future sustainability and growth of the insurance sector in both Indonesia and ASEAN. The research objective is to examine the relationship between macroeconomic variables and insurance and claims. Using annual panel data regression analysis, we examine the relationship between macroeconomic indicators and insurance gross premiums in a sample of 63 countries from 2010 to 2019. The macroeconomic indicators used in the model are real Gross Domestic Product (GDP), inflation, interest rates, and exchange rates. The results suggest that macroeconomic variables play a significant role in determining the performance of gross premiums and claims. Lessons learned include that real GDP, inflation, and real interest rates show a positive and significant relationship with gross premiums, while exchange rates show a negative relationship. However, the lasting impact of these macroeconomic variables on gross premiums varies from one to the other. In fact, only two variables, real GDP and inflation, have a lasting impact. The results suggest that market players should provide strong and comprehensive risk management systems to address macroeconomic turbulence. Surveillance and monitoring macroeconomic indicators are essential, especially in a macro-dependent sector.

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On the macrofinancial determinants of life and non-life insurance premiums

Hodula

Janků

Časta

et al. 2021

Geneva Pap Risk Insur Issues Pract

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This paper tests potential determinants of the development of the insurance sector. Using a rich dataset for 24 European countries spanning two decades, we identify a set of macrofinancial factors that are the most robust predictors of growth of gross premiums in the life and non-life insurance sectors. We show that both life and nonlife premiums co-move with the business cycle and are positively related to higher savings and a more developed financial system. In addition, we provide new evidence on the role of market concentration and price effects. We find that market concentration matters only for life insurance, whereas the price channel is significant only for non-life insurance. From a policy perspective, our empirical estimates can be used to refine the existing macroprudential stress tests of the insurance sector.

show abstract

The relationship between insurance market and macroeconomic indicators in the Baltic states

Cited by 5 publications

References 13 publications

Does economic policy uncertainty affect insurance premiums? Fresh empirical evidence

Does economic policy uncertainty affect insurance premiums? Fresh empirical evidence

Interrelationship Between Macroeconomic Variables With Insurance Premiums and Claims – Lessons For Indonesia & ASEAN

On the macrofinancial determinants of life and non-life insurance premiums

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