FACTORS INFLUENCING NON-LIFE INSURANCE DEMAND: CASE OF LITHUANIA

This paper studies factors affecting non-life insurance demand in Lithuania. The study identified variables that are important analyzing the for and were applied estimating multivariate VAR, Classical Granger, Toda-Yamamoto causalities. Lithuania’s case showed three significant causal relationships: positive - between inflation loss probability, negative density short-term interest rate. Loss probability rate have been shown to be across all models. Inflation was deemed effect of shift rather than cause.