The Declining Effect of Insurance on Life Expectancy

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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 languageEnglish (US)
Article number6
JournalJournal of Risk and Financial Management
Issue number1
StatePublished - Jan 2023


  • 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)


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