All fired up: the growth of fire insurance in Sweden, 1830-1950

摘要

In this article we investigate supply and demand factors that have been put forward to explain the growth of fire insurance markets in Sweden during the financial revolution. We show that income growth and urbanisation fostered the demand for fire insurance. The supply of fire insurance, on the other hand, helps explain financial market development. Fire insurance assisted in mortgaging fixed assets, such as houses, through guaranteeing them as collateral. On both the supply side and the demand side, fire insurance was a key factor of the financial revolution in Sweden.