TY - BOOK ID - 11267042 TI - Institutional Quality, Knightian Uncertainty, and Insurability : A Cross-Country Analysis AU - Erbas, S. AU - Sayers, Chera. AU - International Monetary Fund. PY - 2006 SN - 1451864396 1462381081 1451988087 9786613822871 1452729964 1282636693 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Electronic books. -- local. KW - Risk (Insurance). KW - Risk management -- Econometric models. KW - Finance KW - Business & Economics KW - Insurance KW - Risk (Insurance) KW - Risk management KW - Econometric models. KW - Risk KW - Management KW - Macroeconomics KW - Industries: Financial Services KW - Intelligence (AI) & Semantics KW - Insurance Companies KW - Actuarial Studies KW - Formal and Informal Sectors KW - Shadow Economy KW - Institutional Arrangements KW - Personal Income, Wealth, and Their Distributions KW - Pension Funds KW - Non-bank Financial Institutions KW - Financial Instruments KW - Institutional Investors KW - Technological Change: Choices and Consequences KW - Diffusion Processes KW - Insurance & actuarial studies KW - Artificial intelligence KW - Personal income KW - Insurance companies KW - Income UR - https://www.unicat.be/uniCat?func=search&query=sysid:11267042 AB - Knightian uncertainty (ambiguity) implies presence of uninsurable risks. Institutional quality may be a good indicator of Knightian uncertainty. This paper correlates non-life insurance penetration in 70 countries with income level, financial sector depth, country risk, a measure of cost of insurance, and the World Bank governance indexes. We find that institutional quality-transparency-uncertainty nexus is the dominant determinant of insurability across countries, surpassing the explanatory power of income level. Institutional quality, as it reflects on the level of uncertainty, is the deeper determinant of insurability. Insurability is lower when governance is weaker. ER -