The Relationship between Insurance and Economic Growth in Romania Compared to the Main Results in Europe – A Theoretical and Empirical Analysis

AbstractThe correlation between insurance and economic growth has been analyzed by many authors at the international level, thus there are a lot of studies seeking to assess the causal relation between macroeconomic performance and the size of the insurance sector. The insurance becomes a major component in certain economies, consequently the weight of insurance to the GDP of every country being over 10% in some European countries (such as the Netherlands, the United Kingdom and Finland), and it is even higher as the economic development is higher. We can say that the percentage in GDP of a country is the measure of the development of that respective state. The purpose of this paper is to establish the correlation between insurance and economic growth in Romania, by taking into consideration the share of gross premium written to GDP (insurance penetration), and the average value of the insurance premium paid by an inhabitant across one year (insurance density), as insurance indicators. The methodology of our research employs statistical methods concerning the analysis between the GDP and insurance indicators. The results obtained will be compared with those obtained on other markets