Life insurance demand dynamics impact of economic and human-sustainability: Fresh evidence from African countries

Abstract

This paper examines the dynamics in the relationship between the development in insurance market and a set of main determinants of the life insurance demand in African economies. We use a bootstrap Granger causality approach with a rolling window technique, and an ARDL model. Our empirical findings reveal a positive impact of economic growth, social development, financial development and trade on life insurance demand. A negative association of life insurance demand with the CPI is, however, reported. The results show specifically, that life insurance nexus with economic growth and human factors vary over time and across countries with different conditions and different magnitudes. This disparity is explained in terms of differences across countries and across time in social development, economic development and demographic disparities. These outcomes have strong economic and strategic implications for African economies. Sustainable economic and financial developments, together with country social stability lead to sustainable development in the insurance market. Government efforts should, therefore, be accent not only on the economic aspect, financial development but also on social aspects that also matter.