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Institutional drivers of life insurance consumption: a dynamic panel approach for European countries

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  • Simona Laura Dragoş

    (Babeş-Bolyai University of Cluj Napoca
    University of Orleans, LEO)

  • Codruţa Mare

    (Babeş-Bolyai University of Cluj Napoca)

  • Cristian Mihai Dragoş

    (University of Orleans, LEO
    Babeş-Bolyai University of Cluj Napoca)

Abstract

The motivation behind this study resides in the heterogeneous development of life insurance across 31 European (developed and former communist) nations over the period 2002–2012. We use the dynamic panel methodology for explaining the main institutional drivers of life insurance consumption. The results show that the most significant institutional factor is governance effectiveness. Among the economic and demographic factors the interest rate and fiscal freedom exert a negative effect on life insurance consumption. Our results can be the basis for improving governance policies in former communist countries and for creating an institutional system of right incentives on the market.

Suggested Citation

  • Simona Laura Dragoş & Codruţa Mare & Cristian Mihai Dragoş, 2019. "Institutional drivers of life insurance consumption: a dynamic panel approach for European countries," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 44(1), pages 36-66, January.
    • Handle: RePEc:pal:gpprii:v:44:y:2019:i:1:d:10.1057_s41288-018-0106-3
    DOI: 10.1057/s41288-018-0106-3
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    2. Claudia Diana Sabău-Popa & Diana Claudia Perțicaș & Adrian Florea & Luminița Rus & Hillary Wafula Juma, 2024. "Is Younger Population Generating Higher CO 2 Emissions? A Dynamic Panel Analysis on European Countries," Sustainability, MDPI, vol. 16(17), pages 1-20, September.
    3. Chimuka Leo Haamukwanza, 2021. "To insure or not to insure—the role that government and insurance practice should play: a thematic comparison of the urban poor and the workers in the pensions and insurance industry," SN Business & Economics, Springer, vol. 1(9), pages 1-20, September.
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    5. Dan Costin Nitescu & Valentin Murgu, 2022. "Factors Supporting the Transition to a “Green” European Economy and Funding Mechanisms," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 24(61), pages 630-630, August.
    6. Elena Nebolsina, 2020. "The Impact of Demographic Burden on Insurance Density," SAGE Open, , vol. 10(4), pages 21582440209, December.
    7. Miron Gabriela Monica, 2020. "The Influence of VAT Variation on the Damages Resulting from Fraud in the Romanian Economy," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 30(4), pages 111-131, December.

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