ABSTRACT
This study investigates the determinants of insurance penetration in African countries over the period 2010-2023. Drawing on an expo-facto research design and utilizing secondary data from selected African nations, the study explores the influence of key economic factors on insurance penetration. The research model incorporates inflation rate, exchange rate, insurance premium, and economic growth as explanatory variables. Through descriptive analysis, correlation analysis, unit root tests, co-integration analysis, and error correction modeling, the study provides comprehensive insights into the dynamics of insurance penetration in Africa.
Findings reveal significant associations between insurance penetration and economic variables, with inflation and insurance premiums positively impacting penetration, while exchange rate volatility and economic growth exhibit negative effects.
The results underscore the complexity of insurance market dynamics in Africa and suggest implications for policymakers, insurers, and consumers. Recommendations are provided to enhance insurance penetration, including policy measures, product innovation, consumer awareness, and data accessibility. Overall, this study contributes to the understanding of insurance market development in African countries and offers insights for fostering financial resilience and risk mitigation across the continent.
