Determinants of Household Life Insurance Premium Expenditures: An Empirical Investigation

Hammond, J. Daniel; Houston, David B.; Melander, E. R.

doi:10.2307/250854

Cited by 149 publications

(143 citation statements)

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“…Studies have cited income, net worth holdings, stage in the life cycle, education and occupation impacting life insurance consumption Hammond (1967). Studies have observed that inflation has no significant impact on life insurance consumption Neumann (1969).…”

Section: Literature Reviewmentioning

confidence: 99%

Influencers of Life Insurance Investments: Empirical Evidence from Europe

Mitra¹

2017

AABFJ

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This study analyzes the impact of economic, demographic and cultural factors on life insurance consumption in 28 European countries. The period of study is post financial crisis from [2009][2010][2011][2012][2013][2014], and the study considers many of the emerging Eastern European economies where there have been significant insurance sector reforms recently. Europe is the world's largest insurance market with 35% of the overall insurance premium contribution, but ranks third in insurance per capita, hence Europe is an interesting region in which to study insurance demand. The study observed four economic parameters: GDP per capita, gross savings, competitiveness of the nation, and inflation, as significant impacts on the insurance consumption in the region. Two demographic factors, population and education, and two cultural factors, individualism and long term orientation, appear to impact insurance consumption in the selected countries. KeywordsEuropean Union, Economic Growth, Investment Decisions, InsuranceThis article is available in Australasian Accounting, Business and Finance Journal: http://ro.uow.edu.au/aabfj/vol11/iss3/7 Influencers of Life Insurance InvestmentsEmpirical Evidence from Europe Aditi Mitra 1 AbstractThis study analyzes the impact of economic, demographic and cultural factors on life insurance consumption in 28 European countries. The period of study is post financial crisis from [2009][2010][2011][2012][2013][2014], and the study considers many of the emerging Eastern European economies where there have been significant insurance sector reforms recently. Europe is the world's largest insurance market with 35% of the overall insurance premium contribution, but ranks third in insurance per capita, hence Europe is an interesting region in which to study insurance demand. The study observed four economic parameters: GDP per capita, gross savings, competitiveness of the nation, and inflation, as significant impacts on the insurance consumption in the region. Two demographic factors, population and education, and two cultural factors, individualism and long term orientation, appear to impact insurance consumption in the selected countries. JEL Classification: G22, I13

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Section: Literature Reviewmentioning

confidence: 99%

Influencers of Life Insurance Investments: Empirical Evidence from Europe

Mitra¹

2017

AABFJ

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“…Hammond [4] makes a study on the impact of economic and demographic factors of demand for life insurance by using regression analysis. They find that income, net worth holdings, stage in the life cycle, education, occupation significantly affect life insurance consumption.…”

Section: Literature Reviewmentioning

confidence: 99%

Determinants of Life Insurance Demand, Consumer Perspective - A Case Study of Ayeduase-Kumasi Community, Ghana

Yusif¹

2015

Bus Eco J

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This study finds out the determinants of life insurance demand in the Ayeduase-Kumasi community from the perspective of consumers. The study adopted Logistic regression modeling technique with 256 cross section observations. Income, higher education, number of dependents, employment by someone else and better perception about insurance firms improved the chances of taking life insurance. Age however, has negative relationship with the odds of taking life insurance. Number of dependents was statistically significant at 1%. Age and Type of employment were both significant at 5% while's income and education level were significant at 10%. Overall the Chi-Square showed that the model was statistically significant at less than 0.001. This study had similar results to previous studies and deviates as well. Çelik and Kayali found a positive relationship between income and odds of taking insurance and that was not different from the results of this study. Contrary to Çelik and Kayali, higher education influences positively the odds of taking life insurance. Moreover, segmenting customers into different groups by using the type of employment as basis of segmentation could help insurance firms to prescribe policies that customers may patronize.

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“…42 Gerber (2007). 43 Hammond et al (1967); Beenstock et al (1986); ; ; Browne et al 44 This is the case because greater income enables households to purchases insurance to acquire financial protection. 45 Furthermore, Li et al 46 suggest that a "large income results in a greater loss of expected utility for the dependents in the event of the income earner's death" and thus increases life insurance consumption in an economy (p. 640).…”

Section: Determinants Of Insurance Market Developmentmentioning

confidence: 99%

Natural Disasters, Political Risk and Insurance Market Development

Chang

Berdiev

2013

Geneva Pap Risk Insur Issues Pract

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We examine the relationship between natural disasters, political risk and insurance market development in a panel of 39 countries over the period 1984-2009 using a dynamic panel two-step system generalised method of moments model. We provide evidence that the incidences of natural disasters and deaths caused by natural disasters lead to greater total insurance, as well as life insurance and non-life insurance consumption. We also find that countries with lower levels of political risk experience higher insurance consumption. The incidences of natural disasters and deaths attributable to natural disasters contribute to insurance market development under the tenure of a government with lower levels of political risk. We therefore emphasise that natural disasters, political risk and their interaction effects are important determinants of insurance market development.

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Determinants of Household Life Insurance Premium Expenditures: An Empirical Investigation

Cited by 149 publications

References 0 publications

Influencers of Life Insurance Investments: Empirical Evidence from Europe

Influencers of Life Insurance Investments: Empirical Evidence from Europe

Determinants of Life Insurance Demand, Consumer Perspective - A Case Study of Ayeduase-Kumasi Community, Ghana

Natural Disasters, Political Risk and Insurance Market Development

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