Information asymmetry and insurance in Africa
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Authors
Asongu, Simplice A
Issue Date
2020-01
Type
Working Paper
Language
en
Keywords
Insurance; Information Asymmetry
Alternative Title
Abstract
In this study, we assess the relevance of decreasing information asymmetry on life and non-life insurance consumption, by using data from 48 African countries during the period 2004-2014. Reduced information asymmetry is proxied by information sharing offices, namely: public credit registries and private credit bureaus. The empirical evidence is based on the Generalised Method of Moments. The findings show that information sharing offices increase insurance consumption with a comparatively higher magnitude in life insurance penetration, relative to non-life insurance penetration. Practical and theoretical implications are discussed.