Insurance Market Development, ICT Diffusion, and Economic Growth in Sub-Saharan Africa

This study extends the existing literature by examining the mediating role of information and communication technology (ICT) diffusion in the relationship between insurance development and economic growth in Sub-Saharan Africa (SSA). Using panel data from 36 SSA countries over the period 2007–2020 and applying the generalized method of moments (GMM), the results show that insurance penetration covering total, life, and non-life insurance along with ICT diffusion, significantly promotes economic growth in the region. The findings further indicate that ICT diffusion strengthens the growth-enhancing effect of insurance, highlighting its critical intervening role. Disaggregated ICT indicators reveal that fixed broadband, telephone subscriptions, and internet usage amplify the impact of total and life insurance penetration on economic growth, while fixed broadband plays a particularly strong role in enhancing the contribution of non-life insurance. Overall, the results suggest that although insurance development supports economic growth, its effectiveness is substantially reinforced through ICT infrastructure. Accordingly, the study underscores the importance for insurers to adopt digital technologies and leverage ICT diffusion to maximize their contribution to economic growth in SSA.