The Effect of Life Insurance on National Product based on Human Development Approach

While many studies have been conducted regarding the relationship between life insurance and economic growth based on mainstream economics in the context of macroeconomic growth models, less attention has been paid to the aspects of its development. This paper tries to appraise the impact of life insurance development on national product. Accordingly the Human Development Index as an indicator, has been used for assessing the impact of life insurance on national product and the causal relationship between them is analyzed. The results indicated that there is a nonlinear two-way causal relationship between human development index and per capita life insurance. In addition, our results indicated a more significant effect of life insurance on human development in Iran.