Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/205014 
Year of Publication: 
2019
Series/Report no.: 
AGDI Working Paper No. WP/19/044
Publisher: 
African Governance and Development Institute (AGDI), Yaoundé
Abstract: 
Purpose - This study investigates the role of financial access in moderating the effect of governance on insurance consumption in 42 Sub-Saharan African countries using data for the period 2004-2014. Design/methodology/approach - Two life insurance indicators are used, notably: life insurance and non-life insurance. Six governance measurements are also used, namely: political stability, "voice & accountability", government effectiveness, regulation quality, corruption-control and the rule of law. The empirical evidence is based on the Generalised Method of Moments (GMM) and Least Squares Dummy Variable Corrected (LSDVC) estimators. Findings - Estimations from the LSDVC are not significant while the following main findings are established from the GMM. First, financial access promotes life insurance through channels of political stability, "voice & accountability", government effectiveness, the rule of law and corruption-control. Second, financial access also stimulates non-life insurance via governance mechanisms of political stability, "voice & accountability", government effectiveness, regulation quality, the rule of law and corruption-control. Originality/value - This research complements the sparse literature on insurance promotion in Africa by engaging the hitherto unexplored role of financial access through governance channels.
Subjects: 
Insurance
Finance
Governance
Sub-Saharan Africa
JEL: 
I28
I30
G20
O16
O55
Document Type: 
Working Paper

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