Yoshihiko Suzawa

Insurance business synergies, economic growth and strategic planning

Previous research has found that life and non-life insurance business share significant relationships with economic growth. This current study extends that literature by being the first to investigate the synergistic relationship life and non-life insurance activities share with economic growth. We collect data that includes 84 national markets representing a broad spectrum of economic development over the 1994-2012 period and employ system-generalised method of moment (GMM) estimation technique based on a dynamic model structure. Our results support the hypothesis that life and non-life insurance synergies share a positive relationship with economic growth and that positive relationship experiences diminishing marginal returns as the insurance markets mature. The results of our study provide implications for policymakers with regard to market liberalisation strategies, as well as implications for the management of insurance companies contemplating foreign market expansion strategies.