Perspective of Property Liability Insurance Industry and Its Determinants : An Empirical Analysis in the Post-Liberalized Era of Indian Economy

The aim of this study is to empirically analyse the determinants of Property-Liability Insurance (PLI) in India over a period from 1992 to 2019. Statistical methods on time series data acknowledge that a long-term relationship exists among the variables without incurring spurious regression. The empirical analysis reveals that income and trade development positively impacts PLI demand, however, financial development and interest rate on alternative instruments have a negative relationship. The association of PLI demand with infrastructure development, education and insurance price are inconclusive. Policymakers and regulators can promote the PLI demand by focusing on and stimulating the identified factors by implementing policies which, in a virtuous circle, have a cascading effect on economic activity