FACTORS INFLUENCING NON-LIFE INSURANCE DEMAND: CASE OF LITHUANIA

Authors

  • Karolina Malakauskienė Product manager, Luminor bank
  • Aušrinė Lakštutienė Kaunas University of Technology
  • Justyna Witkowska University of Warmia and Mazury in Olsztyn

DOI:

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

Keywords:

non-life insurance demand, VAR, Granger Causality

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.

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Published

2022-09-30

How to Cite

Malakauskienė, K., Lakštutienė, A., & Witkowska, J. (2022). FACTORS INFLUENCING NON-LIFE INSURANCE DEMAND: CASE OF LITHUANIA. Management Theory and Studies for Rural Business and Infrastructure Development, 44(3), 244–253. https://doi.org/10.15544/mts.2022.25

Issue

Vol. 44 No. 3 (2022)

Section

Articles