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Does Economic Freedom in Host Countries Lead to Increased Non-Life Insurance Development?

Author

Listed:
  • Hui Shan Lee
  • Shyue Chuan Chong
  • Shen Yap
  • Bik Kai Sia
  • Ying Xi Chen

Abstract

The journey to reinforce connectivity between China and ASEAN-5 through the Belt and Road Initiative (BRI) presents various risks and non-life insurance development opportunities. This research investigates the factors that affect non-life insurance development in China and ASEAN-5. This study has offered novel evidence highlighting the impacts of trade variables and a multidimensional economic freedom measure consisting of nine components on non-life insurance development. Panel regression results indicate that trade and the BRI itself are decisive factors that stimulate insurance development. Higher economic freedom, however, has a negative influence on non-life insurance development. In terms of policy implications, regulatory interventions represent a more practical way to enhance the resilience and development of the non-life insurance sector to accomplish the BRI goals.

Suggested Citation

  • Hui Shan Lee & Shyue Chuan Chong & Shen Yap & Bik Kai Sia & Ying Xi Chen, 2021. "Does Economic Freedom in Host Countries Lead to Increased Non-Life Insurance Development?," SAGE Open, , vol. 11(4), pages 21582440211, October.
    • Handle: RePEc:sae:sagope:v:11:y:2021:i:4:p:21582440211054486
    DOI: 10.1177/21582440211054486
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    References listed on IDEAS

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