Relation between Insurance and Economic Growth in Nepal

Abstract

This paper scrutinizes the relationship between insurance penetration and economic growth of Nepal on annual macroeconomic data for the period of 1997-2017 source from World Bank’s database. This paper has revealed the behavior of Nepalese insurance on the context of economic growth. Pragmatic results show positively high correlation between penetration and economic growth. However, there is very low percentage of insured population in Nepal. Descriptive statistics and Pearson correlation was used to diagnose results from data collected from world bank database. This study discloses the positive and significant relationship between insurance penetration and economic growth.