What Drives the Development of the Insurance Sector? An Empirical Analysis Based on a Panel of Developed and Developing Countries
The insurance sector can play a critical role in financial and economic development. By reducing uncertainty and the impact of large losses, the sector can encourage new investments, innovation, and competition. As financial intermediaries with lon...
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| Format: | Policy Research Working Paper |
| Language: | English |
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2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110223115546 http://hdl.handle.net/10986/3339 |
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okr-10986-3339 |
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oai_dc |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
AGENTS AMOUNT OF CAPITAL ANNUITIES ANNUITY ASSET MANAGEMENT ASSETS BANK POLICY BANKING BOND BOND MARKET BOND MARKET CAPITALIZATION BOND MARKETS COLLATERAL PROBLEMS COMMERCIAL BANKS COMPETITION CONSUMER PROTECTION CONSUMERS CONSUMPTION INCREASES CONTRACT CONTRACT ENFORCEABILITY CONTRACTS CORPORATE BONDS CORPORATE INVESTMENT COVERAGE CREDIBILITY CREDIT GUARANTEES CREDIT INTERMEDIATION CREDIT MARKET CREDIT MARKETS CREDIT RISK CREDITOR CREDITOR RIGHTS DEFAULT DEGREE OF RISK DEMAND DEMOGRAPHIC DEVELOPING COUNTRIES DEVELOPMENT FINANCE DEVELOPMENT POLICY DIFFERENTIAL TAXATION DISBURSEMENTS DISPOSABLE INCOME DOMESTIC BOND DOMESTIC BOND MARKET DUMMY VARIABLE DUMMY VARIABLES ECONOMETRICS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC RESEARCH ENDOGENOUS VARIABLES ENFORCEMENT ENVIRONMENTAL FACTORS EXCHANGE EXPECTED VALUE EXPENDITURES EXPORTS EXTERNAL TRADE FINANCIAL CRISIS FINANCIAL DEVELOPMENT FINANCIAL INTERMEDIARIES FINANCIAL SECTOR FINANCIAL SYSTEMS FIXED INCOME FOREIGN INSURERS FUTURE FUTURE RESEARCH GDP GDP PER CAPITA GINI COEFFICIENT GOOD GOODS HEALTH INSURANCE HEDGE INCENTIVES INCOME EFFECT INCOME GROUP INCOME INEQUALITY INCOME INSTRUMENTS INCOME LEVEL INCOME LEVELS INFLATION INFLATION RATE INFLATIONARY EXPECTATIONS INFLUENCE INFORMATION INFORMATION SERVICES INSURANCE INSURANCE ACTIVITIES INSURANCE ACTIVITY INSURANCE COMPANIES INSURANCE CONTRACTS INSURANCE COVERAGE INSURANCE GROWTH INSURANCE INDUSTRIES INSURANCE INDUSTRY INSURANCE MARKET INSURANCE MARKETS INSURANCE PENETRATION INSURANCE POLICIES INSURANCE PREMIUMS INSURANCE PRODUCTS INTEREST INTEREST RATES INTERNATIONAL BANK INTERNATIONAL BUSINESS INTERNATIONAL FINANCIAL STATISTICS INTERNATIONAL INSURANCE INTERNATIONAL SETTLEMENTS INVESTMENT INVESTMENT HORIZONS INVESTMENTS LAGS LEGAL ENVIRONMENT LEGAL FRAMEWORK LEGAL RIGHTS LENDERS LIABILITY LIABILITY INSURANCE LIABILITY MANAGEMENT LIFE EXPECTANCIES LIFE EXPECTANCY LIFE INSURANCE LIFE INSURANCE COMPANIES LIFE INSURANCE PREMIUM LIFE INSURANCE PREMIUMS LIFE INSURANCE PRODUCTS LIFE-INSURANCE LOAN LONG-TERM FINANCE LONG-TERM INSTRUMENTS LOSS LOSSES LOW INFLATION MARKET MARKET CONCENTRATION MARKET DATA MARKET DEVELOPMENT MARKET PLAYER MARKET STRUCTURE MIDDLE INCOME COUNTRIES MORTGAGES MOTOR THIRD PARTY LIABILITY INSURANCE NON-LIFE INSURANCE OLIGOPOLISTIC MARKETS OPEN COUNTRIES OPEN ECONOMIES OUTCOMES OUTPUT PENSION PENSION SYSTEM PENSIONS PER CAPITA INCOME PERSONAL LOANS POLITICAL ECONOMY PORTFOLIO PORTFOLIOS POSITIVE EFFECTS POVERTY PRICE PRICES PRICING PRIVATE BOND PRIVATE BONDS PRIVATE CREDIT PRIVATE PENSIONS PRIVATE SECTOR DEVELOPMENT PROPERTY PROPERTY INSURANCE PUBLIC PENSION REAL ASSETS REAL ESTATE REAL INTEREST REAL INTEREST RATE REAL INTEREST RATES REGRESSION ANALYSIS REGULATION REGULATIONS REGULATORY ENVIRONMENT REGULATORY FRAMEWORK RETURN RETURNS REVENUES RISK AVERSION RISK MANAGEMENT RISK POOLING RISKS RULE OF LAW SAVING SAVINGS SAVINGS MOTIVE SECURITY SHARE SMALL ECONOMIES SOCIAL SECURITY SOCIAL SECURITY PROGRAMS SOCIAL SECURITY SYSTEMS SUBSTITUTION EFFECT TAXES TERM STRUCTURE OF INTEREST RATES THEORY TRANSITION COUNTRIES TRENDS URBANIZATION VALUE VALUE OF COLLATERAL WORLD DEVELOPMENT INDICATORS |
| spellingShingle |
AGENTS AMOUNT OF CAPITAL ANNUITIES ANNUITY ASSET MANAGEMENT ASSETS BANK POLICY BANKING BOND BOND MARKET BOND MARKET CAPITALIZATION BOND MARKETS COLLATERAL PROBLEMS COMMERCIAL BANKS COMPETITION CONSUMER PROTECTION CONSUMERS CONSUMPTION INCREASES CONTRACT CONTRACT ENFORCEABILITY CONTRACTS CORPORATE BONDS CORPORATE INVESTMENT COVERAGE CREDIBILITY CREDIT GUARANTEES CREDIT INTERMEDIATION CREDIT MARKET CREDIT MARKETS CREDIT RISK CREDITOR CREDITOR RIGHTS DEFAULT DEGREE OF RISK DEMAND DEMOGRAPHIC DEVELOPING COUNTRIES DEVELOPMENT FINANCE DEVELOPMENT POLICY DIFFERENTIAL TAXATION DISBURSEMENTS DISPOSABLE INCOME DOMESTIC BOND DOMESTIC BOND MARKET DUMMY VARIABLE DUMMY VARIABLES ECONOMETRICS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC RESEARCH ENDOGENOUS VARIABLES ENFORCEMENT ENVIRONMENTAL FACTORS EXCHANGE EXPECTED VALUE EXPENDITURES EXPORTS EXTERNAL TRADE FINANCIAL CRISIS FINANCIAL DEVELOPMENT FINANCIAL INTERMEDIARIES FINANCIAL SECTOR FINANCIAL SYSTEMS FIXED INCOME FOREIGN INSURERS FUTURE FUTURE RESEARCH GDP GDP PER CAPITA GINI COEFFICIENT GOOD GOODS HEALTH INSURANCE HEDGE INCENTIVES INCOME EFFECT INCOME GROUP INCOME INEQUALITY INCOME INSTRUMENTS INCOME LEVEL INCOME LEVELS INFLATION INFLATION RATE INFLATIONARY EXPECTATIONS INFLUENCE INFORMATION INFORMATION SERVICES INSURANCE INSURANCE ACTIVITIES INSURANCE ACTIVITY INSURANCE COMPANIES INSURANCE CONTRACTS INSURANCE COVERAGE INSURANCE GROWTH INSURANCE INDUSTRIES INSURANCE INDUSTRY INSURANCE MARKET INSURANCE MARKETS INSURANCE PENETRATION INSURANCE POLICIES INSURANCE PREMIUMS INSURANCE PRODUCTS INTEREST INTEREST RATES INTERNATIONAL BANK INTERNATIONAL BUSINESS INTERNATIONAL FINANCIAL STATISTICS INTERNATIONAL INSURANCE INTERNATIONAL SETTLEMENTS INVESTMENT INVESTMENT HORIZONS INVESTMENTS LAGS LEGAL ENVIRONMENT LEGAL FRAMEWORK LEGAL RIGHTS LENDERS LIABILITY LIABILITY INSURANCE LIABILITY MANAGEMENT LIFE EXPECTANCIES LIFE EXPECTANCY LIFE INSURANCE LIFE INSURANCE COMPANIES LIFE INSURANCE PREMIUM LIFE INSURANCE PREMIUMS LIFE INSURANCE PRODUCTS LIFE-INSURANCE LOAN LONG-TERM FINANCE LONG-TERM INSTRUMENTS LOSS LOSSES LOW INFLATION MARKET MARKET CONCENTRATION MARKET DATA MARKET DEVELOPMENT MARKET PLAYER MARKET STRUCTURE MIDDLE INCOME COUNTRIES MORTGAGES MOTOR THIRD PARTY LIABILITY INSURANCE NON-LIFE INSURANCE OLIGOPOLISTIC MARKETS OPEN COUNTRIES OPEN ECONOMIES OUTCOMES OUTPUT PENSION PENSION SYSTEM PENSIONS PER CAPITA INCOME PERSONAL LOANS POLITICAL ECONOMY PORTFOLIO PORTFOLIOS POSITIVE EFFECTS POVERTY PRICE PRICES PRICING PRIVATE BOND PRIVATE BONDS PRIVATE CREDIT PRIVATE PENSIONS PRIVATE SECTOR DEVELOPMENT PROPERTY PROPERTY INSURANCE PUBLIC PENSION REAL ASSETS REAL ESTATE REAL INTEREST REAL INTEREST RATE REAL INTEREST RATES REGRESSION ANALYSIS REGULATION REGULATIONS REGULATORY ENVIRONMENT REGULATORY FRAMEWORK RETURN RETURNS REVENUES RISK AVERSION RISK MANAGEMENT RISK POOLING RISKS RULE OF LAW SAVING SAVINGS SAVINGS MOTIVE SECURITY SHARE SMALL ECONOMIES SOCIAL SECURITY SOCIAL SECURITY PROGRAMS SOCIAL SECURITY SYSTEMS SUBSTITUTION EFFECT TAXES TERM STRUCTURE OF INTEREST RATES THEORY TRANSITION COUNTRIES TRENDS URBANIZATION VALUE VALUE OF COLLATERAL WORLD DEVELOPMENT INDICATORS Feyen, Erik Lester, Rodney Rocha, Roberto What Drives the Development of the Insurance Sector? An Empirical Analysis Based on a Panel of Developed and Developing Countries |
| geographic_facet |
The World Region |
| relation |
Policy Research working paper ; no. WPS 5572 |
| description |
The insurance sector can play a critical
role in financial and economic development. By reducing
uncertainty and the impact of large losses, the sector can
encourage new investments, innovation, and competition. As
financial intermediaries with long investment horizons,
insurance companies can contribute to the provision of
long-term instruments to finance corporate investment and
housing. There is evidence of a causal relationship between
insurance sector development and economic growth. However,
there have been few studies examining the factors that drive
the development of the insurance industry. This paper
contributes to the literature by examining the determinants
of insurance premiums (both life and non-life premiums) and
total assets for a panel of about 90 countries during the
period 2000-08. The results show that life sector premiums
are driven by per capita income, population size and
density, demographic structures, income distribution, the
size of the public pension system, state ownership of
insurance companies, the availability of private credit, and
religion. The non-life sector is affected by these and other
variables. While some of these drivers are structural, the
results also show that the development of the insurance
sector can be influenced by a number of policy variables. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Feyen, Erik Lester, Rodney Rocha, Roberto |
| author_facet |
Feyen, Erik Lester, Rodney Rocha, Roberto |
| author_sort |
Feyen, Erik |
| title |
What Drives the Development of the Insurance Sector? An Empirical Analysis Based on a Panel of Developed and Developing Countries |
| title_short |
What Drives the Development of the Insurance Sector? An Empirical Analysis Based on a Panel of Developed and Developing Countries |
| title_full |
What Drives the Development of the Insurance Sector? An Empirical Analysis Based on a Panel of Developed and Developing Countries |
| title_fullStr |
What Drives the Development of the Insurance Sector? An Empirical Analysis Based on a Panel of Developed and Developing Countries |
| title_full_unstemmed |
What Drives the Development of the Insurance Sector? An Empirical Analysis Based on a Panel of Developed and Developing Countries |
| title_sort |
what drives the development of the insurance sector? an empirical analysis based on a panel of developed and developing countries |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110223115546 http://hdl.handle.net/10986/3339 |
| _version_ |
1764386820421844992 |
| spelling |
okr-10986-33392021-04-23T14:02:09Z What Drives the Development of the Insurance Sector? An Empirical Analysis Based on a Panel of Developed and Developing Countries Feyen, Erik Lester, Rodney Rocha, Roberto AGENTS AMOUNT OF CAPITAL ANNUITIES ANNUITY ASSET MANAGEMENT ASSETS BANK POLICY BANKING BOND BOND MARKET BOND MARKET CAPITALIZATION BOND MARKETS COLLATERAL PROBLEMS COMMERCIAL BANKS COMPETITION CONSUMER PROTECTION CONSUMERS CONSUMPTION INCREASES CONTRACT CONTRACT ENFORCEABILITY CONTRACTS CORPORATE BONDS CORPORATE INVESTMENT COVERAGE CREDIBILITY CREDIT GUARANTEES CREDIT INTERMEDIATION CREDIT MARKET CREDIT MARKETS CREDIT RISK CREDITOR CREDITOR RIGHTS DEFAULT DEGREE OF RISK DEMAND DEMOGRAPHIC DEVELOPING COUNTRIES DEVELOPMENT FINANCE DEVELOPMENT POLICY DIFFERENTIAL TAXATION DISBURSEMENTS DISPOSABLE INCOME DOMESTIC BOND DOMESTIC BOND MARKET DUMMY VARIABLE DUMMY VARIABLES ECONOMETRICS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC RESEARCH ENDOGENOUS VARIABLES ENFORCEMENT ENVIRONMENTAL FACTORS EXCHANGE EXPECTED VALUE EXPENDITURES EXPORTS EXTERNAL TRADE FINANCIAL CRISIS FINANCIAL DEVELOPMENT FINANCIAL INTERMEDIARIES FINANCIAL SECTOR FINANCIAL SYSTEMS FIXED INCOME FOREIGN INSURERS FUTURE FUTURE RESEARCH GDP GDP PER CAPITA GINI COEFFICIENT GOOD GOODS HEALTH INSURANCE HEDGE INCENTIVES INCOME EFFECT INCOME GROUP INCOME INEQUALITY INCOME INSTRUMENTS INCOME LEVEL INCOME LEVELS INFLATION INFLATION RATE INFLATIONARY EXPECTATIONS INFLUENCE INFORMATION INFORMATION SERVICES INSURANCE INSURANCE ACTIVITIES INSURANCE ACTIVITY INSURANCE COMPANIES INSURANCE CONTRACTS INSURANCE COVERAGE INSURANCE GROWTH INSURANCE INDUSTRIES INSURANCE INDUSTRY INSURANCE MARKET INSURANCE MARKETS INSURANCE PENETRATION INSURANCE POLICIES INSURANCE PREMIUMS INSURANCE PRODUCTS INTEREST INTEREST RATES INTERNATIONAL BANK INTERNATIONAL BUSINESS INTERNATIONAL FINANCIAL STATISTICS INTERNATIONAL INSURANCE INTERNATIONAL SETTLEMENTS INVESTMENT INVESTMENT HORIZONS INVESTMENTS LAGS LEGAL ENVIRONMENT LEGAL FRAMEWORK LEGAL RIGHTS LENDERS LIABILITY LIABILITY INSURANCE LIABILITY MANAGEMENT LIFE EXPECTANCIES LIFE EXPECTANCY LIFE INSURANCE LIFE INSURANCE COMPANIES LIFE INSURANCE PREMIUM LIFE INSURANCE PREMIUMS LIFE INSURANCE PRODUCTS LIFE-INSURANCE LOAN LONG-TERM FINANCE LONG-TERM INSTRUMENTS LOSS LOSSES LOW INFLATION MARKET MARKET CONCENTRATION MARKET DATA MARKET DEVELOPMENT MARKET PLAYER MARKET STRUCTURE MIDDLE INCOME COUNTRIES MORTGAGES MOTOR THIRD PARTY LIABILITY INSURANCE NON-LIFE INSURANCE OLIGOPOLISTIC MARKETS OPEN COUNTRIES OPEN ECONOMIES OUTCOMES OUTPUT PENSION PENSION SYSTEM PENSIONS PER CAPITA INCOME PERSONAL LOANS POLITICAL ECONOMY PORTFOLIO PORTFOLIOS POSITIVE EFFECTS POVERTY PRICE PRICES PRICING PRIVATE BOND PRIVATE BONDS PRIVATE CREDIT PRIVATE PENSIONS PRIVATE SECTOR DEVELOPMENT PROPERTY PROPERTY INSURANCE PUBLIC PENSION REAL ASSETS REAL ESTATE REAL INTEREST REAL INTEREST RATE REAL INTEREST RATES REGRESSION ANALYSIS REGULATION REGULATIONS REGULATORY ENVIRONMENT REGULATORY FRAMEWORK RETURN RETURNS REVENUES RISK AVERSION RISK MANAGEMENT RISK POOLING RISKS RULE OF LAW SAVING SAVINGS SAVINGS MOTIVE SECURITY SHARE SMALL ECONOMIES SOCIAL SECURITY SOCIAL SECURITY PROGRAMS SOCIAL SECURITY SYSTEMS SUBSTITUTION EFFECT TAXES TERM STRUCTURE OF INTEREST RATES THEORY TRANSITION COUNTRIES TRENDS URBANIZATION VALUE VALUE OF COLLATERAL WORLD DEVELOPMENT INDICATORS The insurance sector can play a critical role in financial and economic development. By reducing uncertainty and the impact of large losses, the sector can encourage new investments, innovation, and competition. As financial intermediaries with long investment horizons, insurance companies can contribute to the provision of long-term instruments to finance corporate investment and housing. There is evidence of a causal relationship between insurance sector development and economic growth. However, there have been few studies examining the factors that drive the development of the insurance industry. This paper contributes to the literature by examining the determinants of insurance premiums (both life and non-life premiums) and total assets for a panel of about 90 countries during the period 2000-08. The results show that life sector premiums are driven by per capita income, population size and density, demographic structures, income distribution, the size of the public pension system, state ownership of insurance companies, the availability of private credit, and religion. The non-life sector is affected by these and other variables. While some of these drivers are structural, the results also show that the development of the insurance sector can be influenced by a number of policy variables. 2012-03-19T18:00:37Z 2012-03-19T18:00:37Z 2011-02-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20110223115546 http://hdl.handle.net/10986/3339 English Policy Research working paper ; no. WPS 5572 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper The World Region |