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

ENUsing mixed-effect and panel data regression models applied on data from the Baltic states, 1996–2017, this article examines how, and to what extent, insurance market indicators are related to or dependent on macroeconomic indicators. The results show that the growth of economic well-being and living standards, built on the growth of GDP per capita and households’ income, largely contributes to increasing insurance consumption in terms of insurance premiums, insurance density, and insurance penetration as key indicators from both state-level and cross-country perspectives. Meanwhile, inflation, national currency depreciation, and exchange rate increase are identified as insurance market growth impeding indicators.