IDEAS home Printed from https://ideas.repec.org/a/eee/beexfi/v36y2022ics2214635022000697.html
   My bibliography  Save this article

Relationship and mutual influence between poverty and insurance in a developing insurance market

Author

Listed:
  • Tsvetkova, Liudmila
  • Okhrimenko, Igor
  • Belousova, Tamara
  • Khuzhamov, Leonid

Abstract

The “number one” goal of sustainable development today is to end poverty. The creation of effective methods and tools for this purpose would require a thoughtful investigation on poverty and its mutual effects. The present study seeks to identify the relationships and interdependencies between the key financial characteristics of low-income households and their propensity for insurance purchase under the scenario where the insurance product can reduce the likelihood of catastrophic expenses. The study relies on the time series model to analyze statistical information from the RF Federal State Statistics Service on the average insurance premiums and the financial characteristics of households over the period from 2000 to 2019. Based on the results of the analysis, the first hypothesis holding that insurance and household income are related (H1) was refuted, whilst the second hypothesis that insurance is related to household savings (H2) was confirmed. The present findings will be of interest to the practical sector of the economy, including managers employed in insurance companies, as a platform for designing low-income insurance products. The findings will be useful to state and municipal employers who develop poverty reduction and/or elimination measures and to academic researchers by opening up new avenues for research.

Suggested Citation

  • Tsvetkova, Liudmila & Okhrimenko, Igor & Belousova, Tamara & Khuzhamov, Leonid, 2022. "Relationship and mutual influence between poverty and insurance in a developing insurance market," Journal of Behavioral and Experimental Finance, Elsevier, vol. 36(C).
    • Handle: RePEc:eee:beexfi:v:36:y:2022:i:c:s2214635022000697
    DOI: 10.1016/j.jbef.2022.100748
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S2214635022000697
    Download Restriction: no
    File URL: https://libkey.io/10.1016/j.jbef.2022.100748?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Sayem Ahmed & Mohammad Enamul Hoque & Abdur Razzaque Sarker & Marufa Sultana & Ziaul Islam & Rukhsana Gazi & Jahangir A M Khan, 2016. "Willingness-to-Pay for Community-Based Health Insurance among Informal Workers in Urban Bangladesh," PLOS ONE, Public Library of Science, vol. 11(2), pages 1-16, February.
    2. Chantarat, Sommarat & Mude, Andrew G. & Barrett, Christopher B. & Turvey, Calum G., 2017. "Welfare Impacts of Index Insurance in the Presence of a Poverty Trap," World Development, Elsevier, vol. 94(C), pages 119-138.
    3. Alba Lugilde & Roberto Bande & Dolores Riveiro, 2018. "Precautionary saving in Spain during the great recession: evidence from a panel of uncertainty indicators," Review of Economics of the Household, Springer, vol. 16(4), pages 1151-1179, December.
    4. Ignacio Moreno & Purificación Parrado‐Martínez & Antonio Trujillo‐Ponce, 2020. "Economic crisis and determinants of solvency in the insurance sector: new evidence from Spain," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 60(3), pages 2965-2994, September.
    5. Pia, Medrano, 2022. "Insurance and Poverty Reduction: Evidence from Philippine Urban and Rural Households," MPRA Paper 112399, University Library of Munich, Germany.
    6. Ahmet Aytekin & Çağlar Karamaşa, 2017. "Analyzing Financial Performance Of Insurance Companies Traded In BIST via Fuzzy Shannon's Entropy Based Fuzzy TOPSIS Methodology," Alphanumeric Journal, Bahadir Fatih Yildirim, vol. 5(1), pages 51-84, June.
    7. Christine Wen & Jeremy L. Wallace, 2019. "Toward Human-Centered Urbanization? Housing Ownership and Access to Social Insurance Among Migrant Households in China," Sustainability, MDPI, vol. 11(13), pages 1-14, June.
    8. Pius Babuna & Xiaohua Yang & Amatus Gyilbag & Doris Abra Awudi & David Ngmenbelle & Dehui Bian, 2020. "The Impact of COVID-19 on the Insurance Industry," IJERPH, MDPI, vol. 17(16), pages 1-14, August.
    9. David Mark Dror, 2018. "Estimating Willingness-to-Pay for Health Insurance Among Rural Poor in India by Reference to Engel’s Law," World Scientific Book Chapters, in: Financing Micro Health Insurance Theory, Methods and Evidence, chapter 7, pages 139-149, World Scientific Publishing Co. Pte. Ltd..
    10. Adam Wagstaff & Ha Thi Hong Nguyen & Huyen Dao & Sarah Bales, 2016. "Encouraging Health Insurance for the Informal Sector: A Cluster Randomized Experiment in Vietnam," Health Economics, John Wiley & Sons, Ltd., vol. 25(6), pages 663-674, June.
    11. Yinzi Jin & Zhiyuan Hou & Donglan Zhang, 2016. "Determinants of Health Insurance Coverage among People Aged 45 and over in China: Who Buys Public, Private and Multiple Insurance," PLOS ONE, Public Library of Science, vol. 11(8), pages 1-15, August.
    12. Naoki Aizawa, 2019. "Labor market sorting and health insurance system design," Quantitative Economics, Econometric Society, vol. 10(4), pages 1401-1451, November.
    13. Karan, Anup & Yip, Winnie & Mahal, Ajay, 2017. "Extending health insurance to the poor in India: An impact evaluation of Rashtriya Swasthya Bima Yojana on out of pocket spending for healthcare," Social Science & Medicine, Elsevier, vol. 181(C), pages 83-92.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mohd Zuhair & Ram Babu Roy, 2022. "Eliciting relative preferences for the attributes of health insurance schemes among rural consumers in India," International Journal of Health Economics and Management, Springer, vol. 22(4), pages 443-458, December.
    2. Muttaqien Muttaqien & Hermawati Setiyaningsih & Vini Aristianti & Harry Laurence Selby Coleman & Muhammad Syamsu Hidayat & Erzan Dhanalvin & Dedy Revelino Siregar & Ali Ghufron Mukti & Maarten Olivier, 2021. "Why did informal sector workers stop paying for health insurance in Indonesia? Exploring enrollees’ ability and willingness to pay," PLOS ONE, Public Library of Science, vol. 16(6), pages 1-19, June.
    3. Nikos Nomikos & Panagiota Naoum & Vasiliki Naoum & Kostas Athanasakis & John Kyriopoulos & Elpida Pavi, 2022. "Individuals' personal characteristics associated with private health insurance policy possession in Greece," International Journal of Health Planning and Management, Wiley Blackwell, vol. 37(1), pages 361-371, January.
    4. Gabriella Conti & Rita Ginja, 2023. "Who Benefits from Free Health Insurance?: Evidence from Mexico," Journal of Human Resources, University of Wisconsin Press, vol. 58(1), pages 146-182.
    5. Ștefan Cristian Gherghina & Daniel Ștefan Armeanu & Camelia Cătălina Joldeș, 2020. "Stock Market Reactions to COVID-19 Pandemic Outbreak: Quantitative Evidence from ARDL Bounds Tests and Granger Causality Analysis," IJERPH, MDPI, vol. 17(18), pages 1-35, September.
    6. Anshul Kastor & Sanjay K Mohanty, 2018. "Disease-specific out-of-pocket and catastrophic health expenditure on hospitalization in India: Do Indian households face distress health financing?," PLOS ONE, Public Library of Science, vol. 13(5), pages 1-18, May.
    7. Jingya Zhang & Senlin Lin & Di Liang & Yi Qian & Donglan Zhang & Zhiyuan Hou, 2017. "Public Health Services Utilization and Its Determinants among Internal Migrants in China: Evidence from a Nationally Representative Survey," IJERPH, MDPI, vol. 14(9), pages 1-12, September.
    8. Rinshu Dwivedi & Jalandhar Pradhan & Ramesh Athe, 2021. "Measuring catastrophe in paying for healthcare: A comparative methodological approach by using National Sample Survey, India," International Journal of Health Planning and Management, Wiley Blackwell, vol. 36(5), pages 1887-1915, September.
    9. Anup Malani & Cynthia Kinnan & Gabriella Conti & Kosuke Imai & Morgen Miller & Shailender Swaminathan & Alessandra Voena & Bartosz Woda, 2024. "Evaluating and Pricing Health Insurance in Lower-income Countries: A Field Experiment in India," NBER Working Papers 32239, National Bureau of Economic Research, Inc.
    10. Qian Zhang & Joris Hoekstra, 2020. "Policies towards Migrants in the Yangtze River Delta Urban Region, China: Does Local Hukou Still Matter after the Hukou Reform?," Sustainability, MDPI, vol. 12(24), pages 1-24, December.
    11. Zhou, Zhongliang & Zhao, Yaxin & Shen, Chi & Lai, Sha & Nawaz, Rashed & Gao, Jianmin, 2021. "Evaluating the effect of hierarchical medical system on health seeking behavior: A difference-in-differences analysis in China," Social Science & Medicine, Elsevier, vol. 268(C).
    12. Lin, Lin & Zai, Xianhua, 2022. "The Power of Public Insurance With Limited Benefits: Evidence from China's New Cooperative Medical Scheme," GLO Discussion Paper Series 1180, Global Labor Organization (GLO).
    13. Selcuk Kendirli & Muhammet Selcuk Kaya & Mustafa Bilgin, 2020. "Evaluation of Financial Performances of SME’s Listed in the Bist Sme Industrial Index by Using TOPSIS Multicriteria Decision Making Method," Journal of Economic Development, Environment and People, Alliance of Central-Eastern European Universities, vol. 9(3), pages 63-74, September.
    14. Qun Wang & Yi Zhou & Xinrui Ding & Xiaohua Ying, 2017. "Demand for Long-Term Care Insurance in China," IJERPH, MDPI, vol. 15(1), pages 1-15, December.
    15. Anaka Aiyar & Naveen Sunder, 2024. "Health insurance and child mortality: Evidence from India," Health Economics, John Wiley & Sons, Ltd., vol. 33(5), pages 870-893, May.
    16. Lepinteur, Anthony & Yin, Rémi, 2022. "Does Economic Insecurity Reduce all Types of Expenditures?," GLO Discussion Paper Series 1060, Global Labor Organization (GLO).
    17. Takahashi, Kazushi & Ikegami, Munenobu & Sheahan, Megan & Barrett, Christopher B., 2014. "Quasi-experimental evidence on the drivers of index-based livestock insurance demand in Southern Ethiopia," IDE Discussion Papers 480, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    18. Antonio Cutanda & Juan A. Sanchis-Llopis, 2023. "Human capital and the intertemporal substitution for leisure: empirical evidence for Spain," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 22(3), pages 377-396, September.
    19. Patrick Opoku Asuming & Hyuncheol Bryant Kim & Armand Sim, 2024. "Selection and behavioral responses of health insurance subsidies in the long run: Evidence from a field experiment in Ghana," Health Economics, John Wiley & Sons, Ltd., vol. 33(5), pages 992-1032, May.
    20. Navneet Manchanda & Dil Bahadur Rahut, 2021. "Inpatient Healthcare Financing Strategies: Evidence from India," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 33(6), pages 1729-1767, December.

    More about this item

    Keywords

    Poverty; Insurance; Catastrophic spending; SDGs; Insurance poverty; Insurance affordability;
    All these keywords.

    JEL classification:

    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:beexfi:v:36:y:2022:i:c:s2214635022000697. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-behavioral-and-experimental-finance .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.