THE EU LIFE INSURANCE MARKET IN THE CONDITIONS OF CLIMATE CHANGE

Main Article Content

Tetiana OSADCHA
Oleksandr MELNYCHENKO

Abstract

Introduction. The issue of the climate impact on the life insurance market in the European Union has been little researched so far. Previous research is mainly focused on non-life insurance, which is directly linked to environmental changes, since the business's and the public losses from natural disasters and catastrophes are more direct and immediate. However, climate change also affects people's quality and life expectancy. Although over the past decades, the duration of life in the world has increased, during the same period there have been no catastrophic changes in nature. However, over time, the connection between natural disasters and human life may increase.
Purpose. The aim of this study is to access the tendencies of the EU life insurance market in the conditions of climate change.
Results. The panel model results show the substantial positive relations between the size of premiums and greenhouse gas emissions for life insurance contracts.
Originality. This article contributes to the scientific literature and fills the gap in the investigation of the climate change impact on the life insurance market in the EU.
Conclusions. Despite the paucity of data on the impact of climate change on the level and duration of human life in the long term, the results of our study indicate the growing interest in life insurance. It seems that this is not related to the people's desire to reduce the risk of premature death or with the understanding that climate change can increase the risk of death, but with the desire and ability to save money at a later time, thus increasing their financial security in future periods.

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Статті
Author Biographies

Tetiana OSADCHA

Doctor of Science (Economics), Professor
Kherson State University, Ukraine
Kherson, Ukraine

Oleksandr MELNYCHENKO, Gdańsk University of Technology