The Role of Insurance Development in Financial and Economic Growth in Iran
Keywords:
Insurance, Insurance premium, Financial development, Economic growthAbstract
The insurance sector in Iran is one of the most booming sectors of the economy and is growing at the rate of 10-20 percent per annum. In Iran, insurance is a flourishing industry, with several national and international players competing with each other. Iranian insurance companies offer a comprehensive range of insurance plans. In this investigation, we examine the impact of insurance in the process of financial development and economic growth. According to the obtained results, there is a unidirectional causality relation from insurance development to financial growth. Therefore, we conclude that insurance development is an important prerequisite for stimulating financial growth in Iran.
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