n AfricaGrowth Agenda - An evaluation of life insurance consumption in Africa

Volume 2014, Issue 1
  • ISSN : 1811-5187


This paper aims to examine the level of consumption of life insurance in Africa with an attempt to account for the different levels of spread evidenced across the different regions in Africa. Using annual data on the ratio life insurance premiums to gross domestic product as the proxy for life insurance penetration on 31 African countries from 1996 to 2010, we find that life insurance penetration in Africa is generally low. From a regional comparative analysis, we also find a high life insurance consumption among Southern African countries compared to the other sub-regional bodies. Finally, the life insurance consumption is found to income inelastic across all subregional groupings in Africa while an inverted 'U' shaped relationship is found between life insurance penetration and GDP per Capita income.

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