Insurance Demand in Emerging Asian and OECD countries: A Comparative Perspective

Purpose: In this paper we aim to assess insurance demand across selected Asian and OECD countries during the period of the global financial crisis.

Methodology: We collected data from 55 emerging Asian and OECD countries during the period of the global financial crisis. Our methodology relies on panel regressions. Separate models are run for the Asia/OECD economies and a follow-up distinction between high/low income regions is also made.

Findings: We find that global financial crisis affects negatively the general insurance demand particularly in high-income region. Higher dependency ratio in Asia tends to decrease insurance demand, whereas Education in case of Asia positively influences insurance demand indicating that higher literacy rate can be helpful to capture the potential customers. Our results further reveal that life insurance is an important driver for insurance demand in OECD countries whereas general insurance demand is higher in the Asian economies.

Research Limitation: A limitation of this study is that data sets employed do not differentiate between different life and general insurance products.

Practical Implications: This study is helpful for regulators, policy makers and insurance providers to evaluate, assess and monitor insurance demand in relevant countries.

Originality: This is one of the pioneering studies that have assessed insurance demand among emerging Asian and OECD countries during the period of the global financial crisis.