The Impact of Country Risks Index on Commercial Insurance Demand (Case Study: MENA Countries)

In this research the main objective is to explore the impact of country risk index on business insurance demand in MENA countries. To this end, understanding the impact of per capita GDP, risk transition function, education level, inflation, urban population and the real interest rate risk in terms of macro-economic, financial, political and commercial insurance demand in the MENA countries are targeted. The research model estimates, the demand for life insurance in three models (with regard to financial risks, economic and political) and three commercial insurance claims (by taking economic, political and financial risks), using data MENA panel of 16 countries during the period from 2007 to 2014, were to examine the effect of country risks. According to the results, political risk in business demand model is ineffective while the other risks related to financial and economical variables are positive and have a significant effect.