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Financial access, governance and insurance sector development in Sub-Saharan Africa

Simplice Asongu () and Nicholas Odhiambo ()

No 25709, Working Papers from University of South Africa, Department of Economics

Abstract: This study investigates the role of financial access in moderating the effect of governance oninsurance consumption in 42 Sub-Saharan African countries using data for the period 2004-2014.Two life insurance indicators are used, notably: life insurance and non-life insurance. Sixgovernance measurements are also used, namely: political stability, ?voice & accountability?,government effectiveness, regulation quality, corruption-control and the rule of law. The empiricalevidence is based on the Generalised Method of Moments (GMM) and Least Squares DummyVariable Corrected (LSDVC) estimators. Estimations from the LSDVC are not significant whilethe following main findings are established from the GMM. First, financial access promotes lifeinsurance through channels of political stability, ?voice & accountability?, governmenteffectiveness, the rule of law and corruption-control. Second, financial access also stimulates nonlifeinsurance via governance mechanisms of political stability, ?voice & accountability?,government effectiveness, regulation quality, the rule of law and corruption-control. This researchcomplements the sparse literature on insurance promotion in Africa by engaging the hithertounexplored role of financial access through governance channels.

Keywords: Insurance; Finance; Governance; Sub-Saharan Africa (search for similar items in EconPapers)
Date: 2019-08
New Economics Papers: this item is included in nep-ias
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http://uir.unisa.ac.za/bitstream/handle/10500/2570 ... Saharan%20Africa.pdf (application/pdf)

Related works:
Working Paper: Financial Access, Governance and Insurance Sector Development in Sub-Saharan Africa (2019) Downloads
Working Paper: Financial Access, Governance and Insurance Sector Development in Sub-Saharan Africa (2019) Downloads
Working Paper: Financial Access, Governance and Insurance Sector Development in Sub-Saharan Africa (2019) Downloads
Working Paper: Financial Access, Governance and Insurance Sector Development in Sub-Saharan Africa (2019) Downloads
Working Paper: Financial Access, Governance and Insurance Sector Development in Sub-Saharan Africa (2019) Downloads
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