article · Information Technology for Development
An analysis of 36 countries in Sub-Saharan Africa from 2007 to 2020 examines how information and communication technology interacts with insurance penetration to influence economic growth. Using generalized method of moments techniques, the findings confirm that both insurance penetration, covering life, nonlife, and overall markets, and digital infrastructure contribute directly to broader economic expansion. Furthermore, technology acts as an intervening force that strengthens the contribution of insurance to growth. Specific tools including fixed broadband, telephone, and internet connections increase the growth impact of total and life insurance. Fixed broadband in particular significantly enhances the economic effects of nonlife insurance. The overall relationship shows that insurance market development drives economic growth more powerfully when supported by widespread digital infrastructure.
This research demonstrates that expanding digital connectivity strengthens the economic benefits of financial services. By showing that telecommunications and broadband make insurance markets more effective at driving growth, the evidence helps policymakers, financial regulators, and infrastructure developers understand how joint investments in digital networks and financial inclusion can stimulate regional economies across Sub-Saharan Africa.
The findings provide early-stage macroeconomic evidence that could inform digital transformation strategies for insurance providers, financial technology developers, and telecommunications firms operating in Sub-Saharan Africa. By highlighting the link between digital tools and insurance performance, the work suggests potential for digital insurance products delivered over fixed broadband, mobile networks, and the internet, though specific commercial tools or implementation pathways are not detailed.
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This study contributes to the literature by investigating the intervening role of information and communication technology (ICT) diffusion on insurance and economic growth in Sub-Saharan Africa (SSA). This study uses the generalized method of moments technique based on 36 countries, spanning 2007–2020. First, the empirical findings reveal that insurance penetration (i.e. total, life and nonlife) and ICT diffusion induce economic growth in SSA. Second, the evidence suggests that ICT boosts the role of insurance in affecting economic growth. Third, the individual ICT variables such as fixed broadband, telephone and internet propel the impact of total and life penetration on growth. Additionally, fixed broadband was remarkable in enhancing the effect of nonlife penetration on growth. The findings imply that though insurance enhances economic growth, its impact is more revealing through the intervening role of ICT infrastructure. Therefore, insurers must embrace technology and leverage ICT development to improve their performance on growth.
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DOI: 10.1080/02681102.2024.2361478
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