Factors Affecting Insurance Penetration in the Libyan Market: An Econometric Study (2018–2023)

Abstract

This study examined the impact of financial inclusion, insurance awareness, and inflation factors on insurance penetration in the Libyan market as an indicator of insurance sector. The study adopted a descriptive-analytical approach using data from 31 Libyan insurance companies based on the 2022/2023 Annual Report of the Insurance Supervisory Authority and the financial statements of the companies under study; The findings revealed that both financial inclusion and insurance awareness have a positive and significant effect on insurance penetration by enhancing demand for insurance services and supporting sector growth. In contrast, inflation was found to have a negative impact due to its adverse effect on purchasing power. The study concludes that strengthening insurance awareness, expanding financial inclusion, and controlling inflation are essential measures to support the stability and growth of the Libyan insurance..