Izvorni znanstveni članak
https://doi.org/10.1080/1331677X.2017.1325764
The nexus between the demand for life insurance and institutional factors in Europe: new evidence from a panel data approach
Simona Laura Dragos
; Department of Finance, Babes Bolyai University, Cluj-Napoca, Romania; Laboratory of Economics of Orleans, Universite d’Orleans Faculte de Droit d’Economie et de Gestion, Orleans, France
Codruta Mare
; Department of Statistics, Forecasting and Mathematics, Babeş Bolyai University, Cluj-Napoca, Romania
Ingrid-Mihaela Dragota
; Academy of Economic Studies, Department of Finance, The Bucharest University of Economic Studies, Bucharest, Romania
Cristian Mihai Dragos
; Department of Statistics, Forecasting and Mathematics, Babeş Bolyai University, Cluj-Napoca, Romania; Laboratory of Economics of Orleans, Universite d’Orleans Faculte de Droit d’Economie et de Gestion, Orleans, France
Gabriela Mihaela Muresan
; Department of Finance, Babes Bolyai University, Cluj-Napoca, Romania
Sažetak
We investigate the influence of institutional factors upon life
insurance demand for 32 European countries, considering the sociodemographic
and economic determinants as control variables. Using a
panel data approach, we find that life insurance demand is influenced
differently by institutional indicators from the Worldwide Governance
Indicators database, in emerging and transition markets compared to
developed ones. The sound legal environment of developed countries,
where the level of the rule of law is very homogeneous and very high,
makes it non-significant for life insurance demand. For developing
countries the enforceability of contracts, the independence of justice
and the time efficiency of the judicial process positively influence
the decision of citizens to buy life insurance contracts. The effect of
income distribution over life insurance density varies across these
two categories of countries. For transition and emerging markets we
find a positive relationship between life insurance density, income
distribution and level of urbanisation. In developed countries, because
of the high levels of income, life insurance became a common good,
not a luxury one, which makes income distribution an insignificant
factor. For emerging and transition countries policymakers should
concentrate more on strengthening trust in the insurance sector for
reducing the gap with developed countries.
Ključne riječi
Institutional determinants; European countries; life insurance demand; panel data
Hrčak ID:
193195
URI
Datum izdavanja:
1.12.2017.
Posjeta: 1.257 *