Financial Deepening of Insurance and Economic Growth in Kenya
Journal Title: International Journal of Academic Research in Accounting, Finance and Management Sciences - Year 2016, Vol 6, Issue 1
Abstract
The depth of financial sector has been found to promote economic growth. The indemnification and risk pooling properties of insurance facilitate commercial transactions and provision of credit by mitigating losses as well as the measuring and management of non diversifiable risk thus promoting economic activities. Study was set out to examine the relationship between economic growth and insurance penetration in Kenya. The study employed a causal study design. Secondary data was obtained from published reports of Insurance Regulatory Authority (IRA) and Central Bureau of Statistics (CBS) specifically the Annual Insurance Reports and Economic Surveys respectively. The target population was all the 45 Insurance companies registered for operation in Kenya. The study covered six years from 2003 to 2008. Insurance penetration ratio increased by 0.10% to stand at 2.7% in 2008. The long term business accounted for 0.9% and general business accounted for 1.8%. According to the regression equation established, taking insurance penetration factor into account constant at zero, economic growth will still be experienced at 8.395. The data findings analyzed also shows that taking all other independent variables at zero, a unit increase in insurance penetration ratio will lead to 1.375 increase in economic growth rate by 1.375.
Authors and Affiliations
Charles Ndalu
Keywords
Related Articles
- EP ID EP159155
- DOI 10.6007/IJARAFMS/v6-i1/1950
- Views 119
- Downloads 0
Analysis on the Timeliness of the Accountability Report by the Treasurer Spending in Task Force Units in Indonesia
This study aims to analyze the role of treasurer capacity on human resources and its tenure of services, facilities and infrastructures, the regulation, intensity of training administration and accountability of each of...
Investigating the Relationship between Self-Leadership Strategies and Job Satisfaction
The aim of this study was to investigate the relationship between self-leadership strategies and job satisfaction. The study took place at an educational organization in Isfahan. A random sample of 164 employees was sele...
Investigation of Relationship between Balanced Scorecard Prospects Using Accounting Numbers in the Manufacturing Companies Listed on the Stock Exchange
Share Repurchasing and the Policies of Stock-Options
The objective of this paper is to examine the relation between share repurchases and stock options. In fact, certain studies demonstrate that the development of stock option plans since the beginning of the 1990s is also...
The Role of Higher Education Institutions in Developing Science, Technology and Innovation in Romania
Currently methods and modern techniques of knowledge transmission and changes in the geography of knowledge production are certainly notable. The discoveries made in research institutions in a country of innovators can b...