Insurance and Inclusive Growth / Rodney Lester

Format:

Book

Government document

Author/Creator:

Lester, Rodney

Contributor:

Lester, Rodney

Series:

Policy research working papers.

World Bank e-Library.

Language:

English

Subjects (All):

Banks and Banking Reform.

Climate Change Economics.

Credit.

Debt Markets.

Economic Activity.

Economic Growth.

Finance and Financial Sector Development.

Insurance & Risk Mitigation.

Insurance Function.

Insurance Industry.

Insurance Law.

Law and Development.

Macroeconomics and Economic Growth.

Local Subjects:

Banks and Banking Reform.

Climate Change Economics.

Credit.

Debt Markets.

Economic Activity.

Economic Growth.

Finance and Financial Sector Development.

Insurance & Risk Mitigation.

Insurance Function.

Insurance Industry.

Insurance Law.

Law and Development.

Macroeconomics and Economic Growth.

Physical Description:

1 online resource (50 pages)

Place of Publication:

Washington, D.C., The World Bank, 2014

System Details:

data file

Summary:

While the real sector and governments (along with a few micro economists) have long recognized the core economic role that the insurance function plays, the mainstream economics profession has largely treated it as invisible background. This literature review of the relevant research, most of which has been carried out in the past few decades, demonstrates that the insurance sector contributes at a basic level to inclusive economic growth and the effectiveness of the credit function. It also shows that the latter impact may be particularly fundamental in assisting the poor to avoid poverty traps and to progress economically. However, the research and the theoretical models underpinning it also highlight certain constraints to the efficient utilization of the insurance function. The literature dealing with innovations designed to overcome these constraints is reviewed and successful initiatives and remaining challenges are identified.