Skip to main content Skip to main navigation menu Skip to site footer
  • Register
  • Login
  • Menu
  • Home
  • Journal Information
  • Current
  • Archives
  • Editorial Team
  • Fees
  • Ethics and Policies
  • Submission
  • Register
  • Login

Ekonomia i Prawo. Economics and Law

The The Development of the Life Insurance Market in Central and Eastern European Countries
  • Home
  • /
  • The The Development of the Life Insurance Market in Central and Eastern European Countries
  1. Home /
  2. Archives /
  3. Vol. 23 No. 3 (2024) /
  4. Articles

The The Development of the Life Insurance Market in Central and Eastern European Countries

Authors

  • Iwona Laskowska Uniwersytet Łódzki

DOI:

https://doi.org/10.12775/EiP.2024.024

Keywords

life insurance; Central and Eastern European countries; dynamic development index; GMM estimator

Abstract

Motivation: The need to implement the process of economic transformation in the recent past is what significantly differentiates the countries of Central and Eastern Europe from other members of the European Union. Integration into the financial system of the European Union has been an important factor influencing the process of transformation of the life insurance sector and the establishment of the level of competition, as well as the quality and scope of insurance services offered. In addition, the improvement in the macroeconomic situation and the increase in household income have had a significant impact on the growth in demand for insurance products from the life insurance segment. Despite positive changes, the insurance market of Central and Eastern European countries remains a relatively underdeveloped market, and its structure, unlike that of Western European countries, is dominated by property insurance. This points towards a need for further research into the determinants of life insurance market growth in this region of Europe.

Aim: The aim of this paper is twofold. The first  part presents an assessment of the level of development of the life insurance market in ten countries of Central and Eastern Europe over the period 2011-2021 using the method of multivariate comparative analysis in dynamic terms. The second  part of the paper is devoted to an attempt to identify the determinants of the development of this market using econometric models for panel data. 

Results: The life insurance market varies widely among the group of countries considered. The trends of change during the period under consideration were also different. The most severe downturn in the life insurance market was recorded in Poland and the Czech Republic. Significant development was observed in Lithuania and Latvia, countries with an underdeveloped market in the past. The econometric models used confirmed the impact of economic development on the life insurance market.

References

Alhassan, A.L., & Biekpe, N. (2016). Insurance market development and economic growth: Ex-ploring causality in 8 selected African countries, “International Journal of Social Economics”, Vol. 43 No. 3, pp. 321-339, https://doi.org/10.1108/IJSE-09-2014-0182.

Babbel, D. (1981). Inflation, Indexation, and Life Insurance Sales in Brazil. The Journal of Risk and Insurance, Vol. 48, No. 1, pp. 111-135.

Beck, T., & Webb, I. (2003). Economic, Demographic and Institutional Determinants of Life In-surance Consumption across Countries. World Bank Economic Review, 17(1), pp. 51–88. https://doi.org/10.1093/wber/lhg011.

Bednarczyk, T.H., Bielawska, K., Jackowska B., & Wycinka E. (2019), Ekonomiczne i demograficz-na uwarunkowania funkcjonowania i rozwoju ubezpieczeń, Wydawnictwo Uniwersytetu Gdańskiego, Gdańsk.

Beenstock M., Dickinson G., & Khajuria S. (1986). The determination of life premiums: An inter-national cross-section analysis 1970-1981. Insurance: Mathematics and Economics, Elsevier, Vol. 5(4), pp. 261-270.

Blundell, R., & Bond, S. (2000). GMM estimation with persistent panel data: An application to

production functions. Econometric Reviews, Vol. 19, pp. 321–340, https://doi.org/10.1080/07474930008800475.

Bożeka, J., Szewczyk, J., Badach ,E., & Lisek, S. (2022). Ocena poziomu rozwoju gospodarczego województw z zastosowaniem metod porządkowania liniowego w ujęciu dynamicznym, Wia-domości Statystyczne. The Polish Statistician, Vol. 67, No. 12, pp. 39–61, https://doi.org/10.5604/01.3001.0016.1613.

Browne, M. J., & Kim K. (1993). An international analysis of life insurance demand. The Journal of Risk and Insurance, Vol. 60 (4), pp. 616-634, https://doi.org/10.2307/253382.

Celik, S., & Kayali, M. M. (2009). Determinant of demand for life insurance in European coun-tries. Problems and Perspectives in Management, Vol. 7 (3), pp. 32-37. https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/2782/PPM_EN_2009_03_Celik.pdf.

Chang, T., Lee, C. & Chang, C.H. (2014). Does insurance activity promote economic growth? Fur-ther evidence based on bootstrap panel Granger causality test, The European Journal of Fi-nance, 20:12, pp. 1187-1210, https://doi.org/10.1080/1351847X.2012.757555.

Dańska-Borsiak, B. (2011). Dynamiczne modele panelowe. Wydawnictwo Uniwersytetu Łódzkiego, Łódź.

Dragos ,S. L. (2014). Life and non-life insurance demand: the different effects of influence factors in emerging countries from Europe and Asia, Economic Research-Ekonomska Istraživanja, 27(1), pp. 169- 180, https://doi.org/10.1080/1331677X.2014.952112.

Dragoş ,S.L., Mare, C., & Dragoş, C.M. (2018). Institutional drivers of life insurance consumption: a dynamic panel approach for European countries. Geneva Papers on Risk and Insurance - Is-sues and Practice, 44, pp. 36–66. https://doi.org/10.1057/s41288-018-0106-3.

Dragos, S.L., Mare, C., Dragota, I.M., Dragos, C.M., & Muresan, G.M. (2017). The nexus between the demand for life insurance and institutional factors in Europe: new evidence from a panel data approach. Economic Research Ekonomska Istraživanja, 30:1, pp. 1477-1496. https://doi.org/ 10.1080/1331677X.2017.1325764.

Ertl, M. (2017). Insurance Convergence and Post-crisis Dynamics in Central and Eastern Europe. Geneva Papers on Risk and Insurance - Issues and Practice, 42, pp. 323–47. https://doi.org/10.1057/s41288-017-0043-6.

Hodula, M., Janku, J., Casta, M., & Kucera, A. (2020). On the Determinants of Life and Non-Life Insurance Premiums. Working Paper Series 8/2020. Czech National Bank.

Hwang, T., & Gao, S. (2003). The determinants of the demand for life insurance in an emerging economy – the case of China, Managerial Finance, Vol. 29 No. 5/6, pp. 82-96, https://doi.org/10.1108/03074350310768779.

Kjosevski, J. (2012). The Determinants of Life Insurance Demand in Central and Southeastern Europe. International Journal of Economics and Finance, 4. https://doi.org/10.5539/ijef.v4n3p237.

Kotliński, K., & Warżała, R. (2020), Euro a proces konwergencji państw Europy Środkowo-Wschodniej. Próba oceny, Instytut Badań Gospodarczych, Olsztyn.

https://doi.org/10.24136/eep.mon.2020.11.

Kurdyś-Kujawska, A., & Sompolska-Rzechuła, A. (2019). Determinanty popytu na ubezpieczenie na życie: przykład rolników z regionu północno-zachodniej Polski. Prace Naukowe Uniwersy-tetu Ekonomicznego we Wrocławiu, Vol. 63, pp. 71-81. https://doi.org.10.15611/pn.2019.7.06.

Lament, M., & Bukowski, S., (2022), Wybrane determinanty rozwoju rynków ubezpieczeniowych krajów Unii Europejskiej w latach 1999–2019, Wiadomości Ubezpieczeniowe, 2022, nr 4, pp.61-73, https://doi.org/10.33995/wu2022.4.4.

Liebenberg, A., Carson, J., & E. Dumm, R. (2012). A Dynamic Analysis of the Demand for Life In-surance. Journal of Risk and Insurance, 79 (3), pp. 619-644. https://doi.org/10.1111/j.1539-6975.2011.01454.x.

Mare, C., Dragos, S.L., & Dragota, I.-M. (2019b). The impact of human development on the Roma-nian life insurance market: A county spatial econometric analysis. Cogent Business & Man-agement, Taylor & Francis. Vol. 6, pp. 1-15, https://doi.org/10.1080/23311975.2019.1707609.

Mastalerz-Kodzis, A., & Pośpiech, E. (2015). Wielowymiarowa analiza porównawcza w ujęciu dynamicznym na przykładzie wybranych charakterystyk ekonomicznych, Metody Ilościowe w Badaniach Ekonomicznych, Tom XVI/4, 2015, pp. 24 – 33.

Novovic Buric, M., Bacovic ,M. M., Cerovic, J., & Lipovina Bozovic, M. (2017). Factors Influencing Life Insurance Market Development in Montenegro. Periodica Polytechnica Social and Man-agement Sciences, 25(2), pp. 141-149, https://doi.org/10.3311/PPso.10049.

Ostrowska-Dankiewicz, A., & Simionescu, M. (2020). Relationship between the insurance mar-ket and macroeconomic indicators in the EU member states, Transformations in Business & Economics”, Vol. 19, No. 51, pp. 175-187.

Sedlmayer, S. (2023). Munich Re talking about inflation and its impact on (re)insurance,

https://piu.org.pl/wp-content/uploads/2023/06/2023-06-20-Munich-Re-talking-about-inflation-and-its-impact-on-reinsurance.pdf.

Sharku, G., Grabova, P., & Vullnetari, D. (2021). Impact of Economic Factors on Life and Non- Life Insurance Development in Albania – A VECM Analysis. Universal Journal of Accounting and Finance, 9(6), pp. 1280 – 1296. https://doi.org/10.13189/ujaf.2021.090608.

Stroiński, E. (2010), Rynek ubezpieczeń w Polsce na tle sytuacji w Europie Środkowej i Wschod-niej, Wiadomości Ubezpieczeniowe 2.

Śliwiński, A., Michalski, T., & Roszkiewicz, M. (2013). Demand for Life Insurance-An Empirical Analysis in the Case of Poland. Geneva Papers on Risk and Insurance - Issues and Practice, 38, pp. 62–87. https://doi:org/10.1057/gpp.2012.21.

The Polish Chamber of Insurance (PIU), 2022, Raport roczny, https://piu.org.pl/raport-roczny-piu/.

Truett D., &Truett L. (1990). The Demand for Life Insurance in Mexico and the United States: A Comparative Study. The Journal of Risk and Insurance, Vol. 57, pp. 321-328

Zhang, Z., Xu, H., Shan, S., Lu, Y., Duan, H.,& Yipin Lyu, Y. (2022). Exploration of the impact of demographic changes on life insurance consumption: empirical analysis based on Shanghai Cooperation Organization. Economic Research-Ekonomska Istraživanja. https://doi.org/10.1080/1331677X.2022.2134905.

Ekonomia i Prawo. Economics and Law

Downloads

  • PDF

Published

2024-09-30

How to Cite

1.
LASKOWSKA, Iwona. The The Development of the Life Insurance Market in Central and Eastern European Countries . Ekonomia i Prawo. Economics and Law. Online. 30 September 2024. Vol. 23, no. 3, pp. 477-492. [Accessed 4 July 2025]. DOI 10.12775/EiP.2024.024.
  • ISO 690
  • ACM
  • ACS
  • APA
  • ABNT
  • Chicago
  • Harvard
  • IEEE
  • MLA
  • Turabian
  • Vancouver
Download Citation
  • Endnote/Zotero/Mendeley (RIS)
  • BibTeX

Issue

Vol. 23 No. 3 (2024)

Section

Articles

License

Copyright (c) 2024 Iwona Laskowska

Creative Commons License

This work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License.

Stats

Number of views and downloads: 242
Number of citations: 0

Search

Search

Browse

  • Browse Author Index
  • Issue archive

Information

  • For Readers
  • For Authors
  • For Librarians

User

User

Contact

Principal Contact
Piotr Wiśniewski
psw@umk.pl
Support Contact
Grzegorz Kopcewicz
Phone (56) 611 26 93
greg@umk.pl

cross_check

The journal content is indexed in CrossCheck, the CrossRef initiative to prevent scholarly and professional plagiarism

Up

Akademicka Platforma Czasopism

Najlepsze czasopisma naukowe i akademickie w jednym miejscu

apcz.umk.pl

Partners

  • Akademia Ignatianum w Krakowie
  • Akademickie Towarzystwo Andragogiczne
  • Fundacja Copernicus na rzecz Rozwoju Badań Naukowych
  • Instytut Historii im. Tadeusza Manteuffla Polskiej Akademii Nauk
  • Instytut Kultur Śródziemnomorskich i Orientalnych PAN
  • Instytut Tomistyczny
  • Karmelitański Instytut Duchowości w Krakowie
  • Ministerstwo Kultury i Dziedzictwa Narodowego
  • Państwowa Akademia Nauk Stosowanych w Krośnie
  • Państwowa Akademia Nauk Stosowanych we Włocławku
  • Państwowa Wyższa Szkoła Zawodowa im. Stanisława Pigonia w Krośnie
  • Polska Fundacja Przemysłu Kosmicznego
  • Polskie Towarzystwo Ekonomiczne
  • Polskie Towarzystwo Ludoznawcze
  • Towarzystwo Miłośników Torunia
  • Towarzystwo Naukowe w Toruniu
  • Uniwersytet im. Adama Mickiewicza w Poznaniu
  • Uniwersytet Komisji Edukacji Narodowej w Krakowie
  • Uniwersytet Mikołaja Kopernika
  • Uniwersytet w Białymstoku
  • Uniwersytet Warszawski
  • Wojewódzka Biblioteka Publiczna - Książnica Kopernikańska
  • Wyższe Seminarium Duchowne w Pelplinie / Wydawnictwo Diecezjalne „Bernardinum" w Pelplinie
Ekonomia i Prawo. Economics and Law
Katedra Ekonomii 
Wydział Nauk Ekonomicznych i Zarządzania 
Uniwersytet Mikołaja Kopernika w Toruniu 
ul. Gagarina 13A 
87-100 Toruń

Principal Contact

Piotr Wiśniewski
psw@umk.pl

Support Contact

Grzegorz Kopcewicz
Phone (56) 611 26 93
greg@umk.pl

© 2021- Nicolaus Copernicus University Accessibility statement Shop