This paper aims at assessing the role of Insurance in fostering economic growth. Two models of economic growth were estimated via vector error correction mechanism whereas economic growth was a function of average years of educational attainment, unemployment rate, insurance penetration and insurance density, the latter variables appeared once the in each model. Causality test revealed unidirectional relation runs from insurance penetration and insurance density to economic growth indicating supply following. There is a very weak long-run and short-run relationship between economic growth and insurance.
Insurance premiums, economic growth, demand following
