Insurance as an important factor of sustainable development

Abstract

Considering contemporary global challenges, from the Covid-19 pandemic to economic instability, the concept of sustainability is becoming increasingly important. This paper explores the important role of insurance in achieving the Sustainable Development Goals (SDGs) on a global level. Focusing on a three-dimensional approach to sustainability that includes environmental, economic and social aspects, the paper analyzes how the insurance sector can contribute to sustainable development. The paper includes a comparative analysis exploring the correlation between the insurance penetration rate and the Sustainable Development Index (SDG Index) for selected countries. This analysis provides insight into how development of the insurance sector can affect a country's ability to achieve the SDGs. The paper also considers the impact of insurance on economic growth, social inclusion and environmental protection through various policies and services. The analysis points to the potential of insurance to be a catalyst for changes, encouraging sustainable initiatives at all levels - from individual households to companies and governments.