The Impact of the Insurance Industry on Investment in the Iranian Economy

The insurance industry in every country is one of the most important financial institutions active in the financial markets, especially the capital market. In addition to providing security for economic activities, the industry can play a very important key and decisive role in the mobility and dynamics of financial markets and the provision of investment funds by providing insurance services. Although this industry leads to an increase in productivity in other economic sectors by smoothing the ways of investment, reducing investment and participating in the investment of technical reserves, but the growth and development of other economic sectors also strengthens and develops the insurance industry. Assessment of the research background shows that most of the research conducted in this field has examined the role of the insurance industry in the country's macroeconomic economics or evaluating the insurance penetration rate in the economy, but comprehensive research on the impact of the insurance industry on economic investment not caried out so far. Therefore, the present study seeks to fill the role and effect of this industry by filling this vacuum. Therefore, the purpose of this study is to investigate the impact of the insurance industry on investment in the Iranian economy during the period of 1357-99.

The present research is descriptive, analytical and correlational in terms of methodology and applied research in terms of nature. In order to investigate the impact of the insurance industry on investment in the Iranian economy by documentary method and by referring to the subject literature and research conducted in this field, an experimental model has been specified and by using statistical information collected for research variables for the period 1357-99 from databases (Statistics Center, Central Bank and Central Insurance of the Islamic Republic of Iran) At a constant price in 1390, The specified model has been estimated and tested using the method of Autoregressive Distributed Lags (ARDL) models and using econometric software Eviews 12. The error correction model (ECM) was used to investigate the short-term dynamics of the estimated model.

Due to the positive effect of the insurance industry on the country's investment capacity, which takes place through two ways of direct entry into financing and investment activities and indirect operation through the creation of certainty and facilitation of investment activities, the supervisory body and other insurance industry activists are required to improve the role of this industry as an investor and financier, Through increasing the share of life insurance in portfolio of the industry, in order to have more long-term resources at the disposal of the industry. Also, in order to promote the role of the insurance industry in order to create certainty environment and facilitate investment activities, the supervisory body and all the industry activists to launch and promote insurance fields such as commercial credit insurance, bond credit insurance, cash loan credit insurance, debtor's life credit insurance, sickness and accident credit insurance, accounts receivable credit insurance, involuntary unemployment credit insurance, property credit insurance, stock insurance, and bank deposit insurance.