The Evolution of Romania's Market Stability and Performance Indicators of the Life Insurance Sector

Abstract

Evidently, life insurance helps to reduce the burden that weighs upon the state concerning social protection, leading to the release of resources for investment and provision of goods and essential public services (education, health, justice, public order or national defense). Also, life insurance have a major impact, even if indirectly, on financial markets and on economic development as a whole. Because of high amounts they manage and the vast horizon of time they have available, insurers and pension funds is one of the most important sources of capital for financial markets of developed countries. As a result, life insurance is, from the point of view of economy financing, an alternative to the traditional banking system.