THE IMPACT OF INSURANCE ON THE ECONOMIC DEVELOPMENT OF COUNTRIES IN THE WORLD IN THE CONTEXT OF INDUSTRY 4.0 AND 5.0
Abstract
Insurance is a very important part of the global economy, as it helps to ensure the reliability of investments in different countries, expand the market for national insurers and create common insurance principles. The issue of insurance development will always remain relevant to the world because of its multifunctionality for the economies of countries. Enterprises in this industry not only contribute to the country's GDP and play a role in the development of international financial relations (like any other company), but also additionally protect other enterprises from large financial losses, form the financial basis for economic stability and investment, and redistribute risks, which allow other enterprises to take on more risks and develop faster. This issue has been the subject of research for several decades, which demonstrates its continued relevance in the scientific dimension. This article examines the relationship between insurance and economic growth in 8 developed countries that are among the top 10 countries in terms of insurance premiums in 2019-2021 years. The article discusses the essence of the concepts of Industry 4.0 and 5.0, insurance. The state of the global insurance market is characterized. A correlation analysis is carried out between the volume of insurance premiums and the development of countries' economies, which was represented by macroeconomic indicators: inflation; GDP; business confidence index; average annual salary. The study found a positive and significant relationship between insurance (measured by premiums) and economic growth for developed countries that already have a developed insurance market. The study also proved that there is a significant relationship with social indicators, including wages. Proposals have been made to enhance the further development of the insurance market in post-war Ukraine. These proposals encompass improvements to legislation, bolstering public confidence in insurance and introducing cutting-edge insurance products, especially taking into account the capabilities and technologies of Industry 4.0 and 5.0.
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