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Jan Neugebauer | Marek Vokoun
pages: 1-18; JEL classification: G11, G22, C32, R28; Keywords: Housing Investment, Insurance, Czechia, Strategies, Economy, Financial Planning; Abstract: This study investigates the complex relationship between insurance and investment strategies in the Czech Republic using a PICOT-PRISMA approach that focuses on high-impact Social Sciences Citation Index (SSCI) articles from Q1-Q3 journals. By examining both mandatory and optional insurance types, we highlight their impact on societal welfare and individual autonomy. The study also uses VECM econometric analysis to reveal distinct patterns across different economic agents: households have a stable long-term equilibrium, with increased insurance coverage correlated with higher investment levels, implying complementarity. Non-financial companies, on the other hand, show a substitution effect, with increased insurance coverage resulting in lower investment. At the aggregate economic level, we see a stronger positive relationship, with investment serving as the primary driver and insurance playing a more passive role. These findings contribute to the literature by providing empirical evidence on the nuanced interaction of insurance and investment in a small open economy, highlighting the impact of specific economic, regulatory, and sociocultural factors, as well as divergent incentives and risk profiles among households and corporate entities.