+7 925 966 4690, 9am6pm (GMT+3), Monday – Friday
ИД «Финансы и кредит»

JOURNALS

  

FOR AUTHORS

  

SUBSCRIBE

    
Finance and Credit
 

Differentiation factors of levels of regional insurance market development in Russian conditions

Vol. 29, Iss. 5, MAY 2023

Received: 27 February 2023

Received in revised form: 13 March 2023

Accepted: 27 March 2023

Available online: 30 May 2023

Subject Heading: Insurance

JEL Classification: G22, G21, R15

Pages: 1078–1096

https://doi.org/10.24891/fc.29.5.1078

Roman M. MEL'NIKOV Institute of Public Administration and Civil Service of Russian Presidential Academy of National Economy and Public Administration (IPACS RANEPA), Moscow, Russian Federation
rmmel@mail.ru

https://orcid.org/0000-0001-6335-2458

Subject. The article investigates causes of interregional disproportions in the level of insurance market development in modern Russian conditions.
Objectives. The aim is to review the effect of economic, social, demographic, and geographical factors on the development of insurance in current realities.
Methods. The study employs the regression analysis of panel data to estimate the effect of factors determining the differentiation of the levels of regional insurance markets development. Insurance premiums per capita and the ratio of insurance premiums to gross regional product in the context of various types of insurance serve as explained variables.
Results. The most favorable conditions for insurance development are formed in the largest urban agglomerations with high population density, primarily, Moscow and St. Petersburg. The main driver for regional insurance markets development in Russia is the development of the banking system, which stimulates demand for insurance services from borrowers and expands channels for the sale of other insurance products. An increase in the level of education of the population is accompanied by higher risk appetite, and does not lead to increased demand for insurance services. Stable relationship between crime rate and the level of insurance market development is not revealed, which is consistent with results obtained for Eastern Europe.
Conclusions. Increasing the role of insurance in the system of economic growth factors requires implementation of measures to improve the financial and insurance literacy of Russian citizens, and additional tax incentives for policyholders' expenses for insurance protection of life and property.

Keywords: insurance market, financial development, regional development, interregional disproportions, panel data analysis

References:

  1. Mossin J. Aspects of Rational Insurance Purchasing. Journal of Political Economy, 1968, vol. 76, no. 4, pp. 553–568. URL: Link
  2. King R.G., Levine R. Finance and Growth: Schumpeter Might Be Right. Quarterly Journal of Economics, 1993, vol. 108, iss. 3, pp. 717–737. URL: Link
  3. Prokop'eva E.L. [Factors for the effective functioning of the regional insurance markets in Russia]. Voprosy Ekonomiki, 2019, no. 10, pp. 146–155. (In Russ.) URL: Link
  4. Pratt J.W. Risk Aversion in the Small and in the Large. Econometrica, 1964, vol. 32, no. 1-2, pp. 122–136. URL: Link
  5. Arrow K.J. Essays in the Theory of Risk Bearing. Chicago, North-Holland, 1971, 278 p.
  6. Sweeney G.H., Beard T.R. The Comparative Statics of Self-Protection. Journal of Risk and Insurance, 1992, vol. 59, no. 2, pp. 301–309. URL: Link
  7. Szpiro G.G. Optimal Insurance Coverage. Journal of Risk and Insurance, 1985, vol. 52, no. 4, pp. 704–710. URL: Link
  8. Millo G., Carmeci G. Non-Life Insurance Consumption in Italy: A Sub-Regional Panel Data Analysis. Journal of Geographical Systems, 2011, vol. 13, pp. 273–298. URL: Link
  9. Beck T., Webb I. Economic, demographic and institutional determinants of life insurance consumption across countries. World Bank Economic Review, 2003, vol. 17, no. 1, pp. 51–88. URL: Link
  10. Li D., Moshirian F., Nguyen P., Wee T. The demand for life insurance in OECD countries. Journal of Risk and Insurance, 2007, vol. 74, no. 3, pp. 637–652. URL: Link
  11. Alhassan A.L., Biekpe N. Determinants of Life Insurance Consumption in Africa. Research in International Business and Finance, 2016, vol. 37, pp. 17–27. URL: Link
  12. Liu G., Zhang C. The dynamic linkage between insurance activities and banking credit: Some new evidence from global countries. International Review of Economics and Finance, 2016, vol. 44, pp. 40–53. URL: Link
  13. Chang C.-H. The dynamic linkage between insurance and banking activities: An analysis on insurance sector assets. Journal of Multinational Financial Management, 2018, vol. 46, pp. 36–50. URL: Link
  14. Dash S., Pradhan R.P., Maradana R.P. et al. Impact of banking sector development on insurance market-growth nexus: The study of Eurozone countries. Empirica, 2020, vol. 47, pp. 205–243. URL: Link
  15. Trinh T., Nguyen X., Sgro P. Culture and the demand for non-life insurance: Empirical evidences from middle-income and high-income economies. Economics of Transition and Institutional Change, 2021, vol. 29, iss. 3, pp. 431–458. URL: Link
  16. Hofstede G. Insurance as a Product of National Values. Geneva Papers on Risk and Insurance, 1995, vol. 20, no. 77, pp. 423–429. URL: Link
  17. Browne M.J., Kim K. An International Analysis of Life Insurance Demand. Journal of Risk and Insurance, 1993, vol. 60, no. 4, pp. 616–634. URL: Link
  18. Ward D., Zurbruegg R. Law, Politics and Life Insurance Consumption in Asia. Geneva Papers on Risk and Insurance, 2002, vol. 27, no. 3, pp. 395–412. URL: Link
  19. Zerriaa M., Noubbigh H. Determinants of Life Insurance Demand in the Mena Region. Geneva Papers on Risk and Insurance, 2016, vol. 41, no. 3, pp. 491–511. URL: Link
  20. Buric M.N., Bacovic M., Cerovic J., Bozovic M.L. Factors influencing life insurance market development in Montenegro. Periodica polytechnica social and management sciences, 2017, vol. 25, no. 2, pp. 141–149. URL: Link
  21. Yuan С., Jiang Y. Factors Affecting the Demand for Insurance in China. Applied Economics, 2015, vol. 47, iss. 45, pp. 4855–4867. URL: Link
  22. Muresan G.M., Armean G. Trust – the intangible asset of policyholder behavior on insurance market. Scientific Annals of Economics and Business, 2016, vol. 63 (s1), pp. 125–136. URL: Link
  23. Browne M.J., Chung J.W., Frees E.W. International Property-Liability Insurance Consumption. Journal of Risk and Insurance, 2000, vol. 67, no. 1, pp. 73–90. URL: Link
  24. Outreville J.F. The Economic Significance of Insurance Markets in Developing Countries. Journal of Risk and Insurance, 1990, vol. 57, no. 3, pp. 487–498. URL: Link
  25. Mitra A. Influencers of Life Insurance Investments: Empirical Evidence from Europe. Australasian Accounting Business and Finance Journal, 2017, vol. 11, no. 3, pp. 87–102. URL: Link
  26. Zerriaa M., Amiri M.M., Noubbigh H., Naoui K. Determinants of Life Insurance Demand in Tunisia. African Development Review, 2017, vol. 29, iss. 1, pp. 69–80. URL: Link
  27. Tiwari A., Patro A., Shaikh I. Information communication technology-enabled platforms and P&C insurance consumption: Evidence from emerging and developing economies. Review of Economics and Finance, 2019, vol. 15, pp. 81–95. URL: Link
  28. Outreville J.F. The relationship between relative risk aversion and the level of education: A survey and implications for the demand for life insurance. Journal of Economic Surveys, 2015, vol. 29, iss. 1, pp. 97–111. URL: Link
  29. Esho N.A., Kirievsky A., Ward D., Zurbruegg R. Law and the Determinants of Property-Casualty Insurance. Journal of Risk and Insurance, 2004, vol. 71, no. 2, pp. 265–283. URL: Link
  30. Lee H.-S., Low K.-L.-T., Chong S.-C., Sia B.-K. Influence of secondary and tertiary literacy on life insurance consumption: Case of selected ASEAN countries. Geneva Papers on Risk and Insurance, 2018, vol. 43, pp. 1–15. URL: Link
  31. Sen S., Madheswaran S. Regional determinants of life insurance consumption: Evidence from selected Asian economies. Asian-Pacific Economic Literature, 2013, vol. 27, iss. 2, pp. 86–103. URL: Link
  32. Outreville J.F. Life Insurance Markets in Developing Countries. Journal of Risk and Insurance, 1996, vol. 63, no. 2, pp. 263–278. URL: Link
  33. Teslenko V.A., Mel'nikov R.M., Sergeeva A.E. Obrazovatel'nyi kapital kak faktor innovatsionnogo razvitiya rossiiskoi ekonomiki [Educational capital as a factor of innovative development of the Russian economy]. Moscow, Prospekt Publ., 2022, 208 p.
  34. Brokešová Z., Pastoráková E., Ondruška T. Determinants of Insurance Industry Development in Transition Economies: Empirical Analysis of Visegrad Group Data. Geneva Papers on Risk and Insurance, 2014, vol. 39, pp. 471–492. URL: Link

View all articles of issue

 

ISSN 2311-8709 (Online)
ISSN 2071-4688 (Print)

Journal current issue

Vol. 30, Iss. 3
March 2024

Archive