INSURANCE SECTOR DEVELOPMENT AND ECONOMIC GROWTH: EVIDENCE FROM EMERGING MARKETS
Omoruyi-Aigbovo, Osariemen and Orobator Benecdita
Volume 1 Issue 1
Abstract
This study empirically investigates the effect of insurance sector development on economic growth in ten selected emerging markets. The countries selected include Nigeria, South Africa, Indonesia, Colombia, Turkey, Latvia, Mexico, Argentina, Costa Rica and China. The study utilizes descriptive statistics, correlation analysis and pooled OLS regression for the period 2016-2020. The empirical findings of the univariate analysis revealed that insurance sector development has a positive and not statistically significant impact on growth in the selected emerging markets. Hence, insurance sector development does not stimulate economic growth in the selected emerging markets. The study recommends that will improve the coverage and penetration of insurance market through developing the supply chain to capture the critical mass population should be implemented. Also,the insurance companies in the selected emerging countries should continue to create public awareness for their products through the use of seminars, conferences and advertisements to stimulate the interest of the citizens on the importance of buying insurance products which will ultimately enhancethe growth of the economy. Keywords: insurance sector development, economic growth, gross premium, correlation analysis, emerging countries
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