Munich Personal RePEc Archive

Information Asymmetry and Insurance in Africa

Asongu, Simplice and Odhiambo, Nicholas (2020): Information Asymmetry and Insurance in Africa. Forthcoming in: Journal of African Business

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Abstract

In this study, we assess the relevance of decreasing information asymmetry on life and non-life insurance consumption, by using data from 48 African countries during the period 2004-2014. Reduced information asymmetry is proxied by information sharing offices, namely: public credit registries and private credit bureaus. The empirical evidence is based on the Generalised Method of Moments. The findings show that information sharing offices increase insurance consumption with a comparatively higher magnitude in life insurance penetration, relative to non-life insurance penetration. Practical and theoretical implications are discussed.

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