HOW DO LIFE AND NON-LIFE INSURANCE AFFECT FINANCIAL INCLUSION? NEW EMPIRICAL EVIDENCE FROM A CROSS-COUNTRY ANALYSIS

Shen Yap (), Hui Shan Lee () and Ping Xin Liew ()
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Shen Yap: Universiti Tunku Abdul Rahman
Hui Shan Lee: Universiti Tunku Abdul Rahman
Ping Xin Liew: Universiti Tunku Abdul Rahman

Bulletin of Monetary Economics and Banking, 2025, vol. 28, issue 1, 117-144

Abstract: This paper examines the influence of life and non-life insurance on financial inclusion in 79 countries during 2019. Financial inclusion indices were calculated using the Euclidean distance approach. The study reveals that the financial inclusion level is considerably impacted by the integration of insurance indicators. In over 64% of the countries, the financial inclusiveness is reduced as a result of the incorporation of life insurance. In contrast, the financial inclusiveness of nearly 47% of the countries was enhanced by the inclusion of non-life insurance. The paper emphasizes the necessity for policymakers to take insurance into account as a critical element of financial inclusion strategies and measures, providing valuable insights for improving global financial inclusiveness.

Keywords: Life insurance; Non-life insurance; Financial inclusion; Euclidean distance approach; Principal component analysis (search for similar items in EconPapers)
JEL-codes: C38 G22 I30 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:idn:journl:v:28:y:2025:i:1f:p:117-144

DOI: 10.59091/2460-9196.1977

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