ZNAČAJ I DJELOTVORNOST ŽIVOTNOG OSIGURANJA NA GOSPODARSKI RAZVOJ
IMPORTANCE AND EFFECTIVENESS OF LIFE INSURANCE ON ECONOMIC DEVELOPMENT

Summary/Abstract: Insurance is a part of the major financial system of every state. Life insurance, with a primary characteristic of long-term savings, is an important product for institutional investors and important source for financing long-term investment. Those characteristics make life insurance a valuable generator of economic development. Saving premiums, as a part of net premiums, is a source of finance for long term investment. These are temporarily free financial means -mathematical reserves - which are used for the payment of future obligations by an insurer. The investment of mathematical reserves has a direct and very efficient influence on economic development. Research has been undertaken of the economy of Bosnia and Herzegovina in light of this finding regarding mathematical reserves. Specified econometric models evaluated and model parameters tested indicate the degree of interdependence and show the significant influence and effectiveness of investing mathematical reserves to the growth of the economy of Bosnia and Herzegovina.

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