The Declining Effect of Insurance on Life Expectancy

This paper used Reiterative Truncated Projected Least Squares (RTPLS) to estimate the effects on life expectancy of an additional dollar insurance premiums for 43 countries. The data shows a clear positive relationship between and with increasing much faster than inflation rate. d(life expectancy)/d(insurance) fell by statistically significant amount (at 95 percent confidence level) 35 countries (and eight exceptions this pattern had relatively short series). By 2020, last per capita increased US citizen’s at birth only 6 days, citizen in United Kingdom 9 Switzerland 7 Luxembourg 1 day. With such small returns insurance, important question is, “Could society gain more shifting money from into alternative uses”?