Insurance Contributioon to Economic Growth in Countries of the West African Economic Monetary Union (WAEMU): A Dynammic Panel Data Approach

Abstract

This communication is intended to analyze the contribution of insurance to economicc growth in WAEMU
countries using panel data over the period 1999-2009. Indeed, few studies havve investigated the
contribution of this sector to economiic growth in the WAEMU. The LSDVC’s method proposed by Bruno
(2005), adopted in this study is betteer than the Generalized Method of Moments (GMM) for estimating
dynamic panels when the sample size is small. It appears that the stimulation of insurance including life
ensures a level of growth in the WAEMMU. In addition, comparative analysis with the Economic
Community and Monetary of Central Africa (ECMCA) shows that life insurance has a positive and
insignificant in WAEMU and ECMCA, while non-life insurance has the opposite effect in both areas. With
this result, some actions be undertaken to improove this sector's contribution to economic growwth in
the WAEMU. Thus, the study suggests: i) draw lesssons from the best South African experience to offer
new products tailored to the needs of populations in terms of guarantees, distribution or ease of access
and price tailored ii) develop strategies to increaase market shares of countries in the WAEMU
coountries, with action for the progressive conquest of part off the population that has not yet subscribed
to innsurance other than the service "car insurance” and iii) help the actors to work towards the
promotion of life insurance guarantee for the future development of the insurance on the one hand and
the outtbreak of insurance companies in the agricultural sector because this sector contributes much
Econoomic growth in EU countries.