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Information Communication Technology-Enabled Platforms and P&C Insurance Consumption: Evidence from Emerging & Developing Economies

Author

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  • Ashu Tiwari

    (Indian Institute of Management, Rohtak, INDIA)

  • Archana Patro

    (Indian Institute of Management, Rohtak, INDIA)

  • Imlak Shaikh

    (Management Development Institute, Gurgaon, INDIA)

Abstract

Many business domains are benefitted with the fast diffusion of Information Communication Technology (ICT) -enabled platforms in society. But, ICT-enabled services have not received similar popularity across all domains despite rapid growth in ICT-based services. In the area of property and casualty insurance, the ICT adoption rate has been slow compared to other domains. The earlier literature in the domain attributed it to the product complexity. This paper argues that the impact of ICT-enabled platforms may have different outcomes on property and casualty insurance consumption due to risk aversion. In insurance literature, risk aversion has been proxied by many factors. As per the literature, secondary education has a positive impact on PCI (Property & Casualty Insurance) consumption while tertiary education has a negative impact on PCI consumption. In the context, this current study has empirically tested the impact of ICT-enabled platforms on PCI consumption in emerging markets and developing countries. The study found that secondary education has no significant impact on adoption of ICT platforms. However, tertiary education reduces the negative impact of ICT-enabled platform whereas Uncertainty Avoidance Index (UAI) increases the magnitude of negative impact of ICT adoption on PCI consumption.

Suggested Citation

  • Ashu Tiwari & Archana Patro & Imlak Shaikh, 2019. "Information Communication Technology-Enabled Platforms and P&C Insurance Consumption: Evidence from Emerging & Developing Economies," Review of Economics & Finance, Better Advances Press, Canada, vol. 15, pages 81-95, February.
    • Handle: RePEc:bap:journl:190108
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    Cited by:

    1. Cong Tam Trinh & Xuan Nguyen & Pasquale Sgro, 2021. "Culture and the demand for non‐life insurance: Empirical evidences from middle‐income and high‐income economies," Economics of Transition and Institutional Change, John Wiley & Sons, vol. 29(3), pages 431-458, July.
    2. Trinh, Cong Tam & Nguyen, Xuan & Sgro, Pasquale & Pham, Cong S., 2020. "Culture, financial crisis and the demand for property, accident and health insurance in the OECD countries," Economic Modelling, Elsevier, vol. 93(C), pages 480-498.
    3. Trinh, Cong Tam & Chao, Chi-Chur & Ho, Nhut Quang, 2023. "Private health insurance consumption and public health-care provision in OECD countries: Impact of culture, finance, and the pandemic," The North American Journal of Economics and Finance, Elsevier, vol. 64(C).

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    More about this item

    Keywords

    Information Communication Technology (ICT); ICT-Adoption; Risk factor; Property & Casualty Insurance (PCI) domain; Emerging markets and developing countries;
    All these keywords.

    JEL classification:

    • B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Historical; Institutional; Evolutionary; Modern Monetary Theory;
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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