Tax Concession In Life Insurance In Algeria

The Algerian insurance market remains under-exploited. In 2019, it generated a turnover of 152,148billion DA, of which 14.118MDA (9.27%) in life insurance. The insurance penetration (turnover / GDP) is about 0.68% against 2.14% in Tunisia and 3.88% in Morocco and a world average of 6.09%. Also, about the density (CA / Population), in Algeria, it is about 28 $ / head against 75$/ head in Tunisia and 127$ / head in Morocco and a world average of 682 $ / head. The purpose of this study is to show the impact of the life insurance tax system on the development of the latter. For that, we started by presenting the Algerian market insurance, its organization, its structure, its world ranking, this is to detect the difficulties and weaknesses of the latter, particularly the insurance branch of people and the reasons for his delay. Next, we have presented the efforts made by the public authorities in tax breaks to promote the latter, and the shortcomings related to the application of these measures, of which we have cited the Tunisian example, finally, we tried to give recommendations to better exploit these reliefs.

Determinants of Insurance Penetration in West African Countries: A Panel Auto Regressive Distributed Lag Approach

This study analyses the long- and short-term dynamics of the determinants of insurance penetration for the period 1999Q1 to 2019Q4 in 15 West African countries. The panel auto regressive distributed lag model was used on the quarterly data gathered. A cointegrating and short-run momentous connection was discovered between insurance penetration along with the independent variables, which were education, productivity, dependency, inflation and income. The error correction term’s significance and negative sign demonstrate that all variables are heading towards long-run equilibrium at a moderate speed of 56.4%. This further affirms that education, productivity, dependency, inflation and income determine insurance penetration in West Africa in the long run. In addition, the short-run causality revealed that all the pairs of regressors could jointly cause insurance penetration. The findings of this study recommend that the economy-wide policies by the government and the regulators of insurance markets in these economies should be informed by these significant factors. The restructuring of the education sector to ensure finance-related modules cut across every faculty in the higher education sector is also recommended. Furthermore, Bancassurance is also recommended to boost the easy penetration of the insurance sector using the relationship with the banking sector as a pathway.

Analytical Study of General Insurance in India

There is a striking difference between developed and developing nations in terms of general insurance penetration and density. It was highest for United States in 2008. It was very closely followed by Switzerland. In fact, General insurance density and penetration both has always been high for these two countries. In this way, these two countries can be regarded as the world leader in general insurance industry. General insurance penetration has not shown much change over the years. For developed countries the average General insurance penetration for 2008 was 3.40 while that of developing nations was just 2.90. Also, there have been no major changes in these values since 2001. Among developing countries, South Africa and Taiwan are fast gaining momentum. Russia is also a close competitor in terms of general insurance penetration. In the Indian sub-continent, it is Sri Lanka that has shown the maximum general insurance penetration and density. India is the next in the rank.

A Theoretical Basis For Innovation, Institutions And Insurance Penetration Nexus

Insurance is one of the systematic solutions to risk reduction available in the modern world. Its contribution to socio-economic development is difficult to overestimate, bearing in mind that the level of diversity and inclusion of the sector explains the degree of financial progress of a nation. This paper has a twofold objectives of ascertaining and discussing an overview of theories that stimulate economic performance from the angles of institutions and innovation. Keywords were used to search literature repository with the aid of Harzing’s publish or perish software. As a result of this process, the New Institutional Economics (NIE) and Schumpeter’s theory of Innovation found suitable to the objectives of the study. The paper concludes that efficient institutions coupled with the emergence of the novel products may likely promote trust and confidence in the market as well as specific needs of the large majority unserved potential consumers. Therefore, interaction between institutions and innovation could likely trigger insurance uptake.

Prelude of Investment

The government of India has taken multiple economic reforms such as Jan Dhan Yojna, UPI, demonetization, and digitalization moving India towards a cashless economy. The financial landscape of India has undergone a radical change with the insurance sector bearing the torch on the road of exponential growth. The insurance penetration recorded was only 3.69% in 2017. The shockingly low participation of individuals indicated the existence of challenges that need to be addressed. The first section of the chapter explores the various factors creating a dilemma for investment in the insurance sector. The other sections of the chapter focus on the current scenario of Insurance investment and the paradigm shift in the perception of customers towards insurance products. The basic purpose is to implement systems thinking of looking at the whole and holistic picture with the highest inclusion towards nation-building and improving the penetration percentage and density of insurance in India.

Drivers of life insurance consumption - an empirical analysis of Western Balkan countries

Life insurance in the Western Balkan Countries is underdeveloped, but it has huge potential for development in the future. The scope of this article is to examine whether and how economic, socio- demographic, and institutional factors determine the demand for life insurance in the Western Balkans, using life insurance density and life insurance penetration as indicators of life insurance demand during 2006-2019. In order to conduct a crosscountry analysis we use panel data regression models and a feasible generalised least squares regression model. The analysis reveals that the most significant factors are income per capita and changes in the urban population. The article contributes to the existing literature by identifying the variables that affect demand for life insurance in the Western Balkans and by providing evidence for insurance operators, authorities, and governments of the respective countries to find ways to further develop the insurance market.

Relation between Insurance and Economic Growth in Nepal

This paper scrutinizes the relationship between insurance penetration and economic growth of Nepal on annual macroeconomic data for the period of 1997-2017 source from World Bank’s database. This paper has revealed the behavior of Nepalese insurance on the context of economic growth. Pragmatic results show positively high correlation between penetration and economic growth. However, there is very low percentage of insured population in Nepal. Descriptive statistics and Pearson correlation was used to diagnose results from data collected from world bank database. This study discloses the positive and significant relationship between insurance penetration and economic growth.

Correlating surface water flood damages in three Indonesia cities

<p>Despite a high growth rate of over 5%, the insurance penetration rate in Indonesia is low, at roughly 2.77 percent and is one of the least developed insurance market among ASEAN economies. A primary explanation for the lack of motivation for taking up insurance is due to the lack of understanding of the multitude of risks from natural hazards the Indonesian market faces, principally of flooding. The purpose of this research is to assess the flood correlation between three of the major cities (Jakarta, Semarang, and Solo) on the island of Java. These highly populated and financial centres of Indonesia are most prone to the rainfall extremes during the Monsoon Season (November – March), many of which causes flooding. All the historical rainfall events were extracted from ECMWF’s ERA-5 hourly rainfall dataset (1979 – 2018). The top 10 events for each city were selected based on peak rainfall intensity. For the selected events in a city, rainfall records of the same period were extracted for the other two cities. This results in 30 simulations per city. Using a 2D hydraulic modelling tool (FloodMap), surface water flood footprints were generated for the events. In the absence of depth-damage curves, the number of buildings flooded under each event were used as an approximation to building damages. Damage to buildings due to surface water flooding in Solo and Semarang were found to be most correlated, with a significant number of buildings flooded in both cities in 15 out of the 20 paired events. Solo and Jakarta show some correlation (7 out of 20) whilst flooding in Semarang and Jakarta are least correlated (4 out of 20). This study is an initial analysis relevant to the modelling of catastrophes in a relatively data sparse environment, providing an approximation of the correlation of flooding between three Indonesian cities. Further studies are required to develop pragmatic approaches to complement catastrophe modelling that integrate the spatial correlation between flood damages in cities.</p>