The Relationship between Activities of the Insurance Industry and Economic Growth: The Case of G-20 Economies

The aim of this study is to examine the impact of developments in the insurance sector on economic growth. This study examines an annual dataset spanning 1992 to 2022 from ten countries within the G-20 economies, for which data is reliably accessible. The analysis employs panel cointegration and panel causality tests to explore the underlying relationships. The results show that the activities of the overall insurance sector have a positive effect on economic development, while non-life insurance activities, as a sub-component of the insurance sector, also demonstrate a similar impact. Furthermore, findings indicate the existence of a bidirectional causality relationship between economic development and non-life insurance premiums. This study provides various recommendations to policymakers in the process of developing policies on the growth of national economies.