2023_The Effect of Institutional Components on Insurance Penetration in Sub-Sahara African Countries
| Format: | General Document |
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| _version_ | 1860798065388027904 |
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| building | INTELEK Repository |
| collection | Online Access |
| collectionurl | https://intelek.unisza.edu.my/intelek/pages/search.php?search=!collection3 |
| copyright | Copyright©PWB2025 |
| country | Malaysia |
| date | 2023-05-14 |
| format | General Document |
| id | 15730 |
| institution | UniSZA |
| internalnotes | Sila masukkan subject wajib Dissertations, Academic. Terima kasih... |
| originalfilename | THE EFFECT OF INSTITUTIONAL COMPONENTS ON INSURANCE PENETRATION IN SUB-SAHARA AFRICAN COUNTRIES (PHD_2023).pdf |
| person | Usman Ahmed Hafiz |
| recordtype | oai_dc |
| resourceurl | https://intelek.unisza.edu.my/intelek/pages/view.php?ref=15730 |
| sourcemedia | Server storage Scanned document |
| spelling | 15730 https://intelek.unisza.edu.my/intelek/pages/view.php?ref=15730 https://intelek.unisza.edu.my/intelek/pages/search.php?search=!collection3 General Document Malaysia Library Staff (Top Management) Library Staff (Management) Library Staff (Support) Terengganu Faculty of Business and Management English application/pdf 1.5 Server storage Scanned document Universiti Sultan Zainal Abidin UniSZA Private Access Universiti Sultan Zainal Abidin SAMBox 3.0.10; modified using iTextSharp™ 5.5.10 ©2000-2016 iText Group NV (AGPL-version) 261 Copyright©PWB2025 Economic development 2023-05-14 THE EFFECT OF INSTITUTIONAL COMPONENTS ON INSURANCE PENETRATION IN SUB-SAHARA AFRICAN COUNTRIES (PHD_2023).pdf Usman Ahmed Hafiz Effect Of Institutional Components Insurance Penetration Sub-Sahara African Countries Insurance—Economic aspects—Sub-Saharan Africa Financial institutions Insurance—Government policy Institutional economics 2023_The Effect of Institutional Components on Insurance Penetration in Sub-Sahara African Countries Individuals and businesses are vulnerable to several risks in undertaking their daily activities. On a global scale, attention is shifting towards minimising the adverse effects of risks on societies. Insurance as a risk mitigation tool is structured in such a way to effectively reduce the severity of losses and enhance long-term resilience to risk incidence. Swiss Re reports that Africa’s insurance penetration rate is about 2.78 % and, not only that, the rate is very low compared to the global average which stands at 7.23 %, but has decreased by 0.2 %. Furthermore, the region has the lowest participation rate in financial services. While institutions are critical determinants of financial service access, most countries in the Sub-Sahara African (SSA) region are characterised by poor institutions. Thus, this study aimed to determine the effects of institutional components on insurance penetration in selected SSA countries. The direct effects of institutional components and innovation on insurance penetration are the leading focus of most researchers. Furthermore, this study tested the role of innovation as a moderating variable in the relationship between institutional components and insurance penetration in selected SSA countries. This moderator was selected based on many previous studies that mentioned it had played an influential moderating role. The new institutional economics theory and resource-based theory were used in this study. A sample of 35 countries out of the population of 48 SSA countries for the period 2009– 2020 was selected using the purposive sampling technique. Data were obtained from secondary sources using the Worldbank and World Intellectual Property Organisation databases. Thus, the empirical analysis was based on the balanced panel data of 420 country-year observations using multiple regression techniques with the help of Stata 16 software. The findings demonstrate that the rule of law, regulatory quality, and government effectiveness significantly affect life insurance penetration at 0.05. However, the effects of the voice and accountability index, control of corruption, and political stability are not statistically significant on life insurance penetration. The findings also reveal that the rule of law, government effectiveness, control of corruption, and political stability statistically affect non-life insurance penetration at 0.05. In contrast, the effects of the voice and accountability index and regulatory quality on non-life insurance penetration are insignificant at 0.05. At the same time, the moderating effect of innovation on the relationship between institutional components and insurance penetration is established. Innovation is an essential catalyst for performance efficiency through which weak institutional factors can be improved to stimulate economic performance. It moderates the relationship between institutional components and insurance penetration. This study contributes theoretically by integrating innovation into the relationship between institutional components and insurance penetration with empirical support. The study suggests the need for policymakers and regulators to emphasise innovation in their policies and product designs to stimulate insurance penetration in the SSA region. Dissertations, Academic Sila masukkan subject wajib Dissertations, Academic. Terima kasih... Thesis |
| spellingShingle | 2023_The Effect of Institutional Components on Insurance Penetration in Sub-Sahara African Countries |
| state | Terengganu |
| subject | Economic development Insurance—Economic aspects—Sub-Saharan Africa Financial institutions Insurance—Government policy Institutional economics Dissertations, Academic |
| summary | Individuals and businesses are vulnerable to several risks in undertaking their daily activities. On a global scale, attention is shifting towards minimising the adverse effects of risks on societies. Insurance as a risk mitigation tool is structured in such a way to effectively reduce the severity of losses and enhance long-term resilience to risk incidence. Swiss Re reports that Africa’s insurance penetration rate is about 2.78 % and, not only that, the rate is very low compared to the global average which stands at 7.23 %, but has decreased by 0.2 %. Furthermore, the region has the lowest participation rate in financial services. While institutions are critical determinants of financial service access, most countries in the Sub-Sahara African (SSA) region are characterised by poor institutions. Thus, this study aimed to determine the effects of institutional components on insurance penetration in selected SSA countries. The direct effects of institutional components and innovation on insurance penetration are the leading focus of most researchers. Furthermore, this study tested the role of innovation as a moderating variable in the relationship between institutional components and insurance penetration in selected SSA countries. This moderator was selected based on many previous studies that mentioned it had played an influential moderating role. The new institutional economics theory and resource-based theory were used in this study. A sample of 35 countries out of the population of 48 SSA countries for the period 2009– 2020 was selected using the purposive sampling technique. Data were obtained from secondary sources using the Worldbank and World Intellectual Property Organisation databases. Thus, the empirical analysis was based on the balanced panel data of 420 country-year observations using multiple regression techniques with the help of Stata 16 software. The findings demonstrate that the rule of law, regulatory quality, and government effectiveness significantly affect life insurance penetration at 0.05. However, the effects of the voice and accountability index, control of corruption, and political stability are not statistically significant on life insurance penetration. The findings also reveal that the rule of law, government effectiveness, control of corruption, and political stability statistically affect non-life insurance penetration at 0.05. In contrast, the effects of the voice and accountability index and regulatory quality on non-life insurance penetration are insignificant at 0.05. At the same time, the moderating effect of innovation on the relationship between institutional components and insurance penetration is established. Innovation is an essential catalyst for performance efficiency through which weak institutional factors can be improved to stimulate economic performance. It moderates the relationship between institutional components and insurance penetration. This study contributes theoretically by integrating innovation into the relationship between institutional components and insurance penetration with empirical support. The study suggests the need for policymakers and regulators to emphasise innovation in their policies and product designs to stimulate insurance penetration in the SSA region. |
| title | 2023_The Effect of Institutional Components on Insurance Penetration in Sub-Sahara African Countries |
| title_full | 2023_The Effect of Institutional Components on Insurance Penetration in Sub-Sahara African Countries |
| title_fullStr | 2023_The Effect of Institutional Components on Insurance Penetration in Sub-Sahara African Countries |
| title_full_unstemmed | 2023_The Effect of Institutional Components on Insurance Penetration in Sub-Sahara African Countries |
| title_short | 2023_The Effect of Institutional Components on Insurance Penetration in Sub-Sahara African Countries |
| title_sort | 2023_the effect of institutional components on insurance penetration in sub-sahara african countries |