The relationship between insurance development and economic growth: The motor third party liability insurance in the Czech Republic in years 2000–2017 in relation to macroeconomic determinants in the Czech Republic

Abstract

The topic of this article is to present an analysis of relationship between a development of a part of insurance market and development of the economy. The article is focused on motor third party liability insurance as one of the most important part of insurance business in developed countries. There are lots of analyses focused on relationship between insurance development and economic growth. However, the effects of this mechanism vary depending on analysed parts of insurance market and they vary across countries, too. The aim of this article is to analyse total written premiums of motor third party liability insurance in the Czech Republic in years 2000–2017 in relation to macroeconomic determinant in the Czech Republic. The methodology of the article is based on the financial time series analysis. The result validates the relationship between the analyzed variables. Conclusions of the article can offered several impulses for future researchers.