Globalization and Insurance Activity: International Evidence

This study uses disaggregated data from life, non-life, and total real insurance density to examine the relationship between insurance activity and KOF index of globalization (overall and its three main sub-indices) of fifteen European countries, ten Asian and Oceanian countries, six North and South American countries, and four African and Middle Eastern countries from 1979 to 2010. This study is the first to empirically use a recently developed bootstrap panel granger causality test technique to identify the relationship between globalization and insurance activities.