Use this URL to cite or link to this record in EThOS:
Title: An investigation into the use of non-life insurance penetration as a measure of wealth : a cross-country analysis
Author: Muraya Jesse, A.
ISNI:       0000 0004 2718 3564
Awarding Body: University of Buckingham
Current Institution: University of Buckingham
Date of Award: 2011
Availability of Full Text:
Access from EThOS:
Existing studies in the past have come to the result that insurance is a luxury good. Often it is those that have wealth to protect that can afford to protect their property. This leads to the assumption that one can differentiate between a 'rich' country and a 'developing' country by the amount of insurance penetration in the industry. Using national wealth statistics, this research undertakes a multiple regression analysis to assess the relationship between non-life insurance penetration and national wealth. The reason for this choice of variable as opposed to income, is that individuals seek to protect ~ their assets thus mitigating the risk of loss or damage of these assets. This means that in order to purchase insurance, there needs to be the presence of wealth that needs protecting. The sample comprises of 45 countries at different stages of economic growth therefore, enabling a distinction to be made between developed and developing nations. The overall result of the study found that national wealth, government consumption and wealth distribution affect demand for non-life insurance products. It was seen that an increase in wealth resulted in an increase in non-life insurance penetration, but at a decreasing rate, therefore showing a wealth elasticity of demand that is less than unity. Government consumption on the other hand, has a negative impact on non-life insurance demand, hence assuming that it is as insurance substitute. For wealth distribution, the result was that there is a positive relationship between wealth inequality and non-life insurance penetration.
Supervisor: Not available Sponsor: Not available
Qualification Name: Thesis (Ph.D.) Qualification Level: Doctoral
EThOS ID:  DOI: Not available