Error Corection Model: Application to Insurance Assets in Indonesia

The purpose of this study is to examine the effect of long-term and short-term expenditure per capita and the population of Indonesia on total assets of the insurance industry by error correction model. The data used are time series data for 13 years from 2002 to 2015. The results of cointegration test indicate that there is a long-term relationship between expenditure per capita, population with total assets insurance's industry. Relationships obtained in the form of long-term and short-term relationships. The implication of this research is public awareness in insurance which indicated by expenditure for insurance can increase insurance growth in Indonesia