Impact analysis of macro-economic factors on non-life insurance sector in India

Abstract

The development of global economy has pushed up the importance of insurance industry in the growth of an economy. This paper intends to study the non-life insurance sector with an objective to identify the macro-economic factors that influence its growth. Time series data of 37 years is considered using Johansen & Engle Granger Cointegration and Ordinary Least Square method. It was found that Final Consumption Expenditure plays a negatively significant role in influencing non-life insurance sector in India. The practical implication of this study lies in controlling the responsible factors through appropriate policy measures to ensure a sustainable growth of the non-life Insurance sector.