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Economic transition and insurance market development: evidence from post-communist European countries

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  • Patricia Born

    (Florida State University)

  • Douglas Bujakowski

    (Drake University)

Abstract

We evaluate the development of insurance markets in 18 post-communist European countries over a 10-year period. In doing so, we estimate static and dynamic models to test the relationship between economic transition indices and insurance density and penetration. Results suggest that licensing and trade practices, monetary stability, consumer protections, and government transfers are relevant to property–casualty and life–health insurance consumption. The findings have implications for policymakers aiming to increase insurance coverage in post-communist countries. Additionally, the research underscores the importance of accounting for economic policies and institutions in studies of insurance market development.

Suggested Citation

  • Patricia Born & Douglas Bujakowski, 2022. "Economic transition and insurance market development: evidence from post-communist European countries," The Geneva Risk and Insurance Review, Palgrave Macmillan;International Association for the Study of Insurance Economics (The Geneva Association), vol. 47(1), pages 201-237, March.
    • Handle: RePEc:pal:genrir:v:47:y:2022:i:1:d:10.1057_s10713-021-00066-3
    DOI: 10.1057/s10713-021-00066-3
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    More about this item

    Keywords

    Insurance market development; Post-transition economy; Economic freedom;
    All these keywords.

    JEL classification:

    • E0 - Macroeconomics and Monetary Economics - - General
    • G2 - Financial Economics - - Financial Institutions and Services
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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