The impact of insurance market activity within financial development is gaining more attention in academia, as the sector experiences growth within emerging markets. This paper aims to understand which macro-economic and social variables impact the growth or decline of the non-life insurance sector broadly across Africa, with a view to provide recommendations to drive increased penetration across the region. The study examines the explanatory factors of non-life insurance demand in Africa, using annual data from 1990 to 2013 on 28 countries. Using Fixed Effects Panel Data Regression, the study finds that: levels of income, and unemployment rates have a significant negative impact on non-life insurance demand; whilst population growth rates, and the level of private sector credit (to GDP) positively impacted non-life insurance demand. Urbanisation rates, and levels of merchandise trade had statistically insignificant effects on non-life insurance demand. Since these variables only explained about 11 % of the variation in the dependent variable, the study suggests that further research into the cultural and institutional (ie. Legal / regulatory) dynamics is required to improve our understanding of what conditions would stimulate non-life insurance demand in future.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:uct/oai:localhost:11427/27402 |
| Date | January 2017 |
| Creators | Chitiyo, Fadzai Chitiyo |
| Contributors | Alhassan, Abdul Latif |
| Publisher | University of Cape Town, Faculty of Commerce, Research of GSB |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Master Thesis, Masters, MCom |
| Format | application/pdf |
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