Date of Award

6-2022

Document Type

Union College Only

Degree Name

Bachelor of Arts

Department

Economics

First Advisor

Dolores Garrido

Keywords

Insurance

Abstract

Economists often cite financial markets and institutions as a primary driver of economic growth. Often overlooked is the role of the insurer. Banking and finance have been the primary focus of much research, whereas insurance receives little fanfare. The aim of this research is to highlight the relationship between economic activity and insurance – and, in general, bring more attention to the value the insurer can create. A quantitative approach was embraced for this investigation. Data was compiled from FRED, SwissRe, UNESCO, and World Bank. This piece of research employs 3 OLS regression models to measure the link between economy size and insurance over the period of 2000 to 2020 for select Latin American and Caribbean countries. The 3 largest economies of the region were selected: Brazil, Mexico, and Argentina. Moreover, each of the 3 OLS regression that were ran were done for each economy. Model 1 simply examines nominal GDP and key insurance statistics. Model 2 adds various additional elements including the CPI, Debt-to-GDP ratio, access to domestic credit, and other salient aspects of economic activity. Model 3 exclusively surveys facets of insurance and recessionary years. Findings from the 3 models helped identify that there is a relationship between economic activity and insurance in each of the 3 economies. When the 3 models were married together – the relationship between insurance on economic activity was found to have mixed results.

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Rights Statement

In Copyright - Educational Use Permitted.