Regulations and Insurance Consumption

Using a sample of 50 countries during 2000-2008, this study investigates the possible impact of insurance regulations on life insurance consumption. The evidence reveals a negative and statistically significant association between supervisory control of the policy conditions of life annuities and pension products and life insurance consumption. A similar inverse relation is observed between the index of capital requirements and insurance consumption. The importance of supervisory variables is also traced in the structure of premium tariffs and premium rates, as reflected in some of the estimations. Finally, regulations in relation to investment management as well as accounting and auditing requirements turn out to be relatively insignificant