Institutional and Demographic Factors Determining Non-Life Insurance Demand, Evidence from Selected Countries with a Panel Data Analysis

This study examines the institutional and demographic factors influencing non-life insurance demand in selected OECD countries. The study's data set consists of annual panel data covering 20 countries for the period 2011-2021. In this context, the aim is to identify institutional and demographic factors (control of corruption, political stability index, rule of law index, urban population ratio, dependency ratio, and education ratio) that may affect the demand for non-life insurance. The classical panel analysis method was appropriate for the estimations and the model was estimated with the Arellano, Froot, and Rogers Estimator. In this respect, the study aims to enrich the insurance demand literature in terms of institutional and demographic determinants. The findings suggest that the rule of law, one of the institutional indicators, has a negative impact on the demand for non-life insurance in the target countries. Moreover, among demographic variables, urban population and education level are positively related to demand. The dependency ratio, on the other hand, has a significant but negative relationship with demand. The study also provides some policy implications for the development of the non-life insurance sector for countries with insurance production above a certain level.