The Declining Effect of Insurance on Life Expectancy

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2 Scopus citations


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

Original languageEnglish (US)
Article number6
JournalJournal of Risk and Financial Management
Issue number1
StatePublished - Jan 2023


  • OECD
  • insurance premiums
  • life expectancy
  • omitted variables bias
  • reiterative truncated projected least squares
  • total derivatives

ASJC Scopus subject areas

  • Business, Management and Accounting (miscellaneous)
  • Economics and Econometrics
  • Accounting
  • Finance


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