The contribution of life and non-life insurances on ASEAN economic growth

Abstract

ASEAN is one of the regions with great potential of the world economic power. Countries included in the association of Southeast Asian countries are predicted to show strong economic growth. There are many factors for the development of the ASEAN region such as insurance industry. The Southeast Asian insurance industry, with a stable and long-term financial asset commitment, could play a bigger role in supporting the region's overall economic growth. This study aims at investigating the contribution of the insurance sector measured by three parameters; namely insurance penetration, insurance density and premium volume. The research was conducted to investigate the factors which are related to the insurance industry and could affect the economic growth of 6 countries; namely Singapore, Malaysia, Philippine, Thailand, Vietnam and Indonesia, in ASEAN area over the period 2005-2015 using a fixed effect model. The result revealed that premium volume of life insurance and non-life insurance, respectively, maintained positive and significant effects on the economic growth. Life insurance penetration and density also give significant effects on economic growth while non-life insurance penetration and density are not statistically significant for the economic growth.

Life Insurance Development and Economic Growth: A Case Study of Nigeria (2000-2022)

“…In addition, the life insurance sector seems to attract little or no attention from the monetary authorities like the banking sector, creating a lapse in the development of the former. Thus, this result is consistent with the findings of Abdellahi and Fathi (2020) andMdanat et al (2019); but inconsistent with the findings of Oloyede et al (2023),Olaiya et al (2023), Shennaev (2020), and Safitri (2019.Lastly, this study showed that the real GDP growth rate tends to increase with an increase in life insurance density, but the outcome isnot remarkable enough. It revealed that Nigeria seems to have other factors responsible for the growth rate of the period, especially given the infinitesimal amount per person operating in this sector due possibly to the rate of poverty and low level of income of most people in the country.…”

The Effect of Insurance Premium on Economic Growth in European Union Countries: Panel Data Analysis

“…It was found out that insurance sector premiums had no considerable influence on the GDP in Nigeria; however, the loans provided to private banks had significant effects on the economic growth in Nigeria. Safitri (2019) investigated the significance of life and non-life insurances on the economic development of the Association of Southeast Asian Nations between the years 2000-2005 with fixed effect model. It was found out in the study that the premiums of life and non-life insurance had affirmative and significant effects on economic growth.…”

Analysis of the impacts of insurance claims settlement on economic growth: The case of Nigeria

“…The insurance sector significantly mitigates unexpected occurrences and indemnifies insureds who suffer losses caused by the insured perils based on the insurance terms and conditions (Fadun & Shoyemi, 2018;Oladele & Uzoma, 2018). The insurance sector impacts a nation's economic activities directly and indirectly (Ayewumi & Awani, 2021;Safitri, 2019;Yeboah & Oppong, 2017). The insurance sector contributes to economic growth in developed and developing countries.…”