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<p>This paper studies factors affecting non-life insurance demand in Lithuania. The study identified variables that are important in analyzing the demand for non-life insurance and were applied in estimating multivariate VAR, Classical Granger, and Toda-Yamamoto causalities. Lithuania’s case showed three significant causal relationships: positive - between non-life insurance demand and inflation and loss probability, negative - between density and short-term interest rate. Loss probability and short-term interest rate have been shown to be significant across all models. Inflation was deemed to be the effect of shift in demand rather than the cause.</p>
</abstract>

This paper studies factors affecting non-life insurance demand in Lithuania. The study identified variables that are important in analyzing the demand for non-life insurance and were applied in estimating multivariate VAR, Classical Granger, and Toda-Yamamoto causalities. Lithuania’s case showed three significant causal relationships: positive - between non-life insurance demand and inflation and loss probability, negative - between density and short-term interest rate. Loss probability and short-term interest rate have been shown to be significant across all models. Inflation was deemed to be the effect of shift in demand rather than the cause.

Factors Influencing Non-Life Insurance Demand: Case of Lithuania

Assoc., Prof., Kaunas University of Technology

Assoc., Prof., University of Warmia and Mazury in Olsztyn

Management Theory and Studies for Rural Business and Infrastructure Development

This work is licensed under the Creative Commons Attribution 4.0 International License.

{"article-title":"Factors Influencing Non-Life Insurance Demand: Case of Lithuania"}

This paper studies factors affecting non-life insurance demand in Lithuania. The study identified variables that are important in analyzing the demand for...

Factors Influencing Non-Life Insurance Demand: Case of Lithuania

Data publikacji: 01 lis 2022

Zakres stron: 244 - 253

Otrzymano: 12 sie 2022

Przyjęty: 18 sie 2022

DOI: https://doi.org/10.15544/mts.2022.25

Słowa kluczowe
non-life insurance demand, VAR, Granger Causality

© 2022 Karolina Malakauskienė et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Factors Influencing Non-Life Insurance Demand: Case of Lithuania

Data publikacji: 01 lis 2022

Zakres stron: 244 - 253

Otrzymano: 12 sie 2022

Przyjęty: 18 sie 2022

DOI: https://doi.org/10.15544/mts.2022.25

Słowa kluczowenon-life insurance demand, VAR, Granger Causality

© 2022 Karolina Malakauskienė et al., published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Słowa kluczowe
non-life insurance demand, VAR, Granger Causality