Narrow Your Choices

Refine By Series

Refine By Language

Refine By Date

—

Refine By JEL Taxonomy

Refine by LOC Taxonomy

Refine By THEMA Taxonomy

  • Print
  • Save

Business and Economics > Insurance

You are looking at 1 - 1 of 1 items for :

  • Type: Journal Issue x
  • Mathematics x
Clear All Modify Search
Cover IMF Working Papers
Institutional Quality, Knightian Uncertainty, and Insurability: A Cross-Country Analysis
Mr. S. Nuri Erbas
and
Chera L. Sayers
Knightian uncertainty (ambiguity) implies presence of uninsurable risks. Institutional quality may be a good indicator of Knightian uncertainty. This paper correlates non-life insurance penetration in 70 countries with income level, financial sector depth, country risk, a measure of cost of insurance, and the World Bank governance indexes. We find that institutional quality-transparency-uncertainty nexus is the dominant determinant of insurability across countries, surpassing the explanatory power of income level. Institutional quality, as it reflects on the level of uncertainty, is the deeper determinant of insurability. Insurability is lower when governance is weaker.
Keywords:
WP; insurance coverage; insurability; life insurance