The Relationship between Life Insurance Demand and Economic Growth in Iran

Authors

1 Assistant Professor, Allame Tabataba'i University

2 MA of Actuarial Science, Allame Tabataba'i University

Abstract

A well-developed insurance sector, as a financial market is necessary for the economic growth since it provides long-term funds for physical and social infrastructures and strengthens risk-taking abilities. This study aims to examine the existence of a relationship between the growth of life insurance demand and the economic growth in Iran.
Using econometric methodology, the data for the period of 1348-1389 were collected from the Iranian national data center, then by estimating the Vector Autoregressive (VAR) model along with several time series tests such as unit root test, co-integration test, granger causality test, impulse response function & variance decomposition of forecast errors, the econometric results indicate that life insurance sector growth contributes positively to economic growth.
 

Keywords