Financial Role of Insurance on Economic Development in Denmark


  • Jens Malthe Molyneux Aalborg University
  • Henrik Soren Matheson Aalborg University



The insurance plays an essential role in economic development by alleviating business risks occasioned by abrupt and disastrous incidents in established and developing nations. Thus, the research assessed the financial role of insurance on economic development in Denmark. The research adopted the descriptive research design. The target population was 200 insurance companies. The research study sampled 100 participants that were chosen from the target population of 200. The sampling technique that was considered the most appropriate was stratified. Questionnaires were utilized to gather the data. The study results showed that insurance is significant in impacting the economic development in Denmark. Insurance activity improves families and organizations' financial stability and helps with competitiveness and the growth of trade and business. Insurance companies help businesses mitigate risk and protect their employees, thus spurring economic development. In addition, insurance companies help finance economic development projects. The study recommended that more emphasis should be developed by all the stakeholders in Denmark, including the government, to ensure the insurance companies are sustainable. The regulatory authorities should establish policies to make it attractive for its residents to patronize the insurance business. This would certainly translate to enhanced insurance investment and more outcomes to the development of the economy because insurance investment has a positive link with GDP. Insurance policies must be made mandatory for people and enterprises to motivate and shield financiers and ensure sustained economic growth.

Keywords: Insurance, Economic Development, Denmark

Author Biographies

Jens Malthe Molyneux, Aalborg University

Postgraduate Student, Aalborg University

Henrik Soren Matheson, Aalborg University

Lecturer, Aalborg University


Abedifar, P., Ebrahim, S. M., Molyneux, P., & Tarazi, A. (2018). Islamic banking and finance: Recent empirical literature and directions for future research. Journal of Economic Surveys, 29(4), 637-670.

Becsi, Z., & Wang, P. (2019). Financial development and growth. Economic Review-Federal Reserve Bank of Atlanta, 82(4), 46.

Berg, G., & Schrader, J. (2020). Access to credit, natural disasters, and relationship lending. Journal of Financial Intermediation, 21(4), 549-568.

Caporale, G. M., Rault, C., Sova, A. D., & Sova, R. (2019). Financial development and economic growth: Evidence from 10 new European Union members. International Journal of Finance & Economics, 20(1), 48-60.

Dash, S., Pradhan, R. P., Maradana, R. P., Gaurav, K., Zaki, D. B., & Jayakumar, M. (2018). Insurance market penetration and economic growth in Eurozone countries: Time series evidence on causality. Future Business Journal, 4(1), 50-67.

Herd, R., Koen, V., Patnaik, I., & Shah, A. (2018). Financial sector reform in India: Time for a second wave?.

Jarzabkowski, P., Bednarek, R., & Spee, P. (2018). Making a market for acts of God: The practice of risk-trading in the global reinsurance industry. Oxford University Press, USA.

Kahandawala, K. A. D. K. H., Jayasena, R. P. D. L., Kumari, H. M. T., Kumari, T. P., Perera, H. M. S., & Rasika, D. G. L. (2019). Journal of Relationship between Insurance Penetration and Economic Growth in Sri Lanka.

Kalemli-Ozcan, S., Ryder, H. E., & Weil, D. N. (2020). Mortality decline, human capital investment, and economic growth. Journal of development economics, 62(1), 1-23.

Laurenceson, J., & Chai, J. C. (2020). Financial reform and economic development in China. Edward Elgar Publishing.

Lawrence, M. B. (2018). The Social Consequences Problem in Health Insurance and How to Solve It. Harv. L. & Pol'y Rev., 13, 593.

Moses, H., Dorsey, E. R., Matheson, D. H., & Thier, S. O. (2020). Financial anatomy of biomedical research. Jama, 294(11), 1333-1342.

Nazlioglu, S., Yalama, A., & Aslan, M. (2019). Financial development and investment: cointegration and causality analysis for the case of Turkey. International Journal of Economic Perspectives, 3(2), 107-119.

Portney, K. E. (2018). Taking sustainable cities seriously: Economic development, the environment, and quality of life in American cities. MIT Press.

Pradhan, R. P., Arvin, M. B., Nair, M., Hall, J. H., & Gupta, A. (2017). Is there a link between economic growth and insurance and banking sector activities in the G-20 countries?. Review of Financial Economics, 33, 12-28.

Rana, P. B. (2018). The evolving multi-layered global financial safety net: Role of Asia. S. Rajaratnam School of International Studies, Nanyang Technological University.

Sawadogo, R., Guérineau, S., & Ouedraogo, I. M. (2018). Life insurance development and economic growth: Evidence from developing countries. Journal of economic development, 43(2), 1-28.

Shang-mei, Z., Yong, L., & Yu-feng, P. (2019). Theoretical model and exponential analysis on insurance industry's contribution to economic growth [J]. Insurance Studies, 1.

Svendsen, G. T. (2019). The political economy of the European Union: Institutions, policy and economic growth. Edward Elgar Publishing.

Webb, I. P. (2020). The effect of banking and insurance on the growth of capital and output. Georgia state university.




How to Cite

Molyneux, J. M., & Matheson, H. S. (2022). Financial Role of Insurance on Economic Development in Denmark. Journal of Finance and Accounting, 6(1), 1–9.