Abstract
This paper used Reiterative Truncated Projected Least Squares (RTPLS) to estimate the effects on life expectancy of an additional dollar of insurance premiums for 43 countries. The data shows a clear positive relationship between insurance and life expectancy with insurance premiums increasing much faster than the inflation rate. The relationship d(life expectancy)/d(insurance) fell by a statistically significant amount (at a 95 percent confidence level) for 35 of the countries (and the eight exceptions to this pattern had relatively short data series). By 2020, the last dollar of per capita insurance increased a US citizen’s life expectancy at birth by only 6 days, a citizen in the United Kingdom by only 9 days, a citizen in Switzerland by only 7 days, and a citizen in Luxembourg by only 1 day.
Original language | English (US) |
---|---|
Article number | 6 |
Journal | Journal of Risk and Financial Management |
Volume | 16 |
Issue number | 1 |
DOIs | |
State | Published - Jan 2023 |
Keywords
- insurance premiums
- life expectancy
- OECD
- omitted variables bias
- reiterative truncated projected least squares
- total derivatives
ASJC Scopus subject areas
- Finance
- Economics and Econometrics
- Accounting
- Business, Management and Accounting (miscellaneous)