THE EFFECT OF ICT ON INSURANCE INDUSTRY IN SELECTED COUNTRIES
Abstract
The main purpose of this paper is to examine theoretical relationship between the level of ICT impact on insurance industry in selected average income countries[1] by using panel data for the period 2002-2010. The results of estimation by fixed effects panel and GMM method indicated that the effect of the number of mobile users (per hundred people) as an ICT index on insurance and financial services (% of commercial service exports) as an insurance industry index is positive and significant. In the other word, with the improvement and development of information and communication technology, the insurance industry is also faced with the development and prosperity and vice versa in the absence of information and communication technology boom of the insurance industry will be reduced. Accordingly the usage of ICT in insurance industry will cause increased production capacity, specialization of activities and improvement in the speed and quality of services. In general perspective, electronic insurance provides customers’ access to insurance services by using safe intermediates and without physical presence.
[1] Group of selected countries: Costa Rica, Ukraine, India, Romania, Peru, Colombia, Paraguay, Iran, Dominican, Turkey, Azerbaijan, Mexico, Pakistan, Malaysia, El Salvador, Uruguay, Thailand, Brazil and Argentina
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