Insurance and inequality in Sub-Saharan Africa
Policy Thresholds
Bibliographic Data
| ID | 3196152 |
|---|---|
| Authors | Simplice Anutechia Asongu (0000-0001-5227-5135, University of South Africa, corresponding author), Nicholas M Odhiambo (0000-0003-4988-0259, University of South Africa) |
| Year | 2019 |
| Volume | 69 |
| Issue | 233-234 |
| Pages | 185-197 |
| Publication date | 2019-09-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | International Social Science Journal (JOURNAL) |
| Journal identifiers | ISSN: 0020-8701 • E-ISSN: 1468-2451 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1111/issj.12223 |
| OpenAlex | W3005363908 |
| Language | EN |
| Citations received | 3 |
| References cited | 59 |
In this study, we examine how insurance affects income inequality in Sub-Saharan Africa, using data from 42 countries during the period 2004-2014. Three inequality variables are used, namely: the Gini coefficient, the Atkinson index and the Palma ratio. Two insurance premiums are employed, namely: life insurance and non-life insurance. The empirical evidence is based on the Generalised Method of Moments (GMM). Life insurance increases the Gini coefficient and increasing life insurance has a net positive effect on the Gini coefficient and the Atkinson index. Non-life insurance reduces the Gini coefficient and increasing non-life insurance has a net positive effect on the Palma ratio. The analysis is extended to establish policy thresholds at which increasing insurance premiums completely dampen the net positive effects. From the extended analysis, 7.500 of life insurance premiums (percentage of GDP) is the critical mass required for life insurance to negatively affect inequality, while 0.855 of non-life insurance premiums (percentage of GDP) is the threshold required for non-life insurance to negatively affect inequality. Policy thresholds are provided at which insurance penetration decreases income inequality in Sub-Saharan Africa
Actuarial science · Demographic economics · Econometrics · Economic inequality · Economics · General insurance · Gini coefficient · Income protection insurance · Index (typography) · Inequality · Insurance policy · Life insurance · COVID-19 Pandemic Impacts · Economic Growth and Development · Mathematics · Taxation and Compliance Studies
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| Unique citing works | 3 |
|---|---|
| Citations per year | 0,5 |
| Citation span | 2020 - 2026 (7) |
| Citation velocity | current |
| Highly cited | No |
| Citation types | Neutral: 3 |