Title: Does economic factors improves property liability insurance consumption in India: an empirical assessment

Authors: Abhijit Mukherjee; Amlan Ghosh

Addresses: Department of Management Studies, National Institute of Technology-Durgapur, Mahatma Gandhi Road, A-Zone, Durgapur, 713209, India ' Department of Management Studies, National Institute of Technology-Durgapur, Mahatma Gandhi Road, A-Zone, Durgapur, 713209, India

Abstract: Property liability insurance (PLI) is an important constituent of the financial system and a positive relationship with economic growth has already been established in India. This study aims at finding the economic factors that impact PLI consumption which consequently has a cascading effect on economic growth in India. Annual data series in the post reform period from 1992 to 2017 has been taken in the study. OLS regression method is used to find the strength of the relationship and for high collinearity between explanatory variables, factor analysis is conducted to reduce the highly correlated variables to certain factor/s. Infrastructure development, registered motor vehicles, income, financial development, trade activity have positive relationship and inflation, price and interest rate on alternative instruments have significant negative relationship with PLI consumption. Policymakers can focus on the identified economic factors and implement policies to boost the PLI consumption to have a positive impact on economic growth in India.

Keywords: India; property liability insurance; PLI; economic factors; infrastructure development; ordinary least squares regression method; factor analysis; economic growth.

DOI: 10.1504/IJBG.2024.142247

International Journal of Business and Globalisation, 2024 Vol.38 No.3, pp.441 - 460

Received: 20 Feb 2020
Accepted: 10 Jan 2021
Published online: 16 Oct 2024 *

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