THE SIGNIFICANCE OF REAL GDP GROWTH FOR THE INSURANCE DEVELOPMENT

Insurance has a growing economic and social importance since risks are also very dynamic category. Remediation of damages due to the realization of the risk is imperative because any delay in compensation has additional negative effects. Insurance is a mechanism that compensates and repairs damages in the most efficient way. It can be seen as a consequence but also a lever of economic development. In this article, insurance is being considered as a consequence of economic development. In this regard was performed an analysis of the importance of real GDP growth on the development of the insurance market in OECD member countries. Therefore, three hypotheses assumes the dependence between real GDP growth, gross direct insurance premiums per capita and insurance penetration. A correlation analysis has been conducted to examine the aforementioned dependencies, and the results were interpreted by analyzing the Pearson correlation coefficient. All three hypotheses were proven, with two strong and positive correlations and one moderately positive correlation.