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The determinants of insurance penetration in Africa

The determinants of insurance penetration in Africa

Isedomi, Imoseme, M. and Chijuka, Ify Michael ORCID: 0009-0006-1043-5018 (2024) The determinants of insurance penetration in Africa. African Development Finance Journal (ADFJ), 7 (1). pp. 199-221. ISSN 2522-3186

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This study examines the factors influencing the level of insurance penetration in African nations from 2010 to 2023. The study investigates the impact of important economic factors on insurance penetration in selected African nations using secondary data and an expo-facto research approach. The study model includes inflation rate, exchange rate, insurance premium, and economic growth as explanatory variables. The study offers a thorough examination of insurance penetration in Africa using descriptive analysis, correlation analysis, unit root test, co-integration analysis, and panel error correction models. The study shows a significant relationship between insurance penetration and economic factors. Inflation and insurance premiums have positive impacts on penetration, but exchange rate fluctuations and economic growth have a negative impact. The findings highlight the intricate nature of insurance market dynamics in Africa and indicate potential consequences for regulators, insurers, and consumers. Recommendations are given to improve insurance penetration through legislative measures, product innovation, consumer awareness, and data accessibility. This study enhances comprehension of insurance market growth in African nations and provides guidance for promoting financial resilience and risk reduction throughout the continent.

Item Type: Article
Uncontrolled Keywords: economic factors; insurance market dynamics; insurance penetration
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HD Industries. Land use. Labor > HD61 Risk Management
H Social Sciences > HG Finance
Faculty / School / Research Centre / Research Group: Faculty of Business
Last Modified: 23 May 2024 15:56

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