Analysing the relationship between economic growth and the insurance sector: Evidence from South Africa

Abstract

The connection between the real economy and the financial sector continues to be a subject of debate amongst scholars. There is a plethora of studies dedicated to unravelling the relationship between economic activity and financial progress. However, a large share of those studies has concentrated on banking and the capital market industries; the studies that have undertaken to decipher the connection between the insurance industry and prosperity in the economy are insufficient. An understanding of the connection between the insurance industry and advancement in the economy is immensely important to effect judicious policy making, which will enhance and boost the economy. The primary goal of this study is to establish if there is a connection between the insurance industry and economic advancement in the South African context.