The Impact of Culture on Non-life Insurance Consumption

Aranee Treerattanapun, UPenn, Wharton

Document Type Working Paper


This study investigates the impact of culture on non‐life insurance consumption. Various economic, institutional, and cultural variables regarding 82 countries across a 10‐year period are considered when building up the best and most parsimonious regression model. Employing blocking and bootstrapping techniques, we find that nations with a low degree of Power Distance, a high level of Individualism, and a high degree of Uncertainty Avoidance tend to have a high level of non‐life insurance consumption. The
empirical results suggest that consumers may respond to insurance solicitations according to their cultural belief, not only economic rationality.


Date Posted: 16 November 2011