Liquidity, Estate Liquidation, Charitable Motives, and Life Insurance Demand by Retired Singles

Hau, Arthur

doi:10.2307/253680

Cited by 41 publications

(50 citation statements)

References 28 publications

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“…Hau (2000) finds that the liquidity of asset holdings is significantly related to the life insurance holding decision. We therefore include in our models a measure of asset liquidity, calculated as the sum of liquid assets scaled by total assets (Liquidity).…”

Section: Control Variablesmentioning

confidence: 99%

Life Insurance Lapse Behavior

Fier

Liebenberg

2013

North American Actuarial Journal

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Life insurance policy lapses are detrimental to issuing insurers when lapses substantially deviate from insurer expectations. The extant literature has proposed and tested, using macroeconomic data, several hypotheses regarding lapse determinants. While macroeconomic data are useful in providing a general test of lapse determinants, the use of aggregate data precludes an analysis of microeconomic factors that may drive the lapse decision. We develop and test a microeconomic model of voluntary life insurance lapse behavior and provide some of the first evidence regarding household factors related to life insurance lapses. Our findings support and extend the prior evidence regarding lapse determinants. Consistent with the emergency fund hypothesis we find that voluntary lapses are related to large income shocks, and consistent with the policy replacement hypothesis we find that the decision to lapse a life insurance policy is directly related to the purchase of a different life insurance policy. We also find that age is an important moderating factor in the lapse decision. Changes in income appear to more directly affect the decision to lapse for younger households, while they are generally unrelated to the lapse decision for older households.

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Section: Control Variablesmentioning

confidence: 99%

Life Insurance Lapse Behavior

Fier

Liebenberg

2013

North American Actuarial Journal

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“…Certain studies (Anderson & Nevin, 1975;Auerbach & Kotlikoff, 1989;Duker, 1969) found negative relationship between life insurance and level of education suggesting that more people involvement in gaining higher education reduces labour force affecting GDP of that country. There are studies that found insignificant relationship between life insurance and education or schooling as argued that insurance education is not basically provided at schools (Beck & Webb, 2003;Hau, 2000;Li et al, 2007;Ofoghi & Farsangi, 2013;Treerattanapun, 2011). And they also stated that educated people having insurance knowledge are more risk averse than without that knowledge.…”

Section: Hypothesis Iii-bmentioning

confidence: 99%

Determinants of Takāful and conventional insurance demand: A regional analysis

Akhter

Khan

2017

Cogent Economics & Finance

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Abstract:In this study, we focused on analysing and differentiating the determinants of conventional insurance and Takāful demand across ASEAN and Middle East Regions. We used panel data econometrics on a sample of 14 Asian countries having both conventional insurance and Takāful over the period [2005][2006][2007][2008][2009][2010][2011][2012][2013][2014]. We applied fixed and random effect regression models to assess the impact of macroeconomic and demographic factors on conventional insurance and Takāful demand. Income and financial sector were found to have significant positive impact on insurance demand across all regions. On the other hand, dependency ratio was found to be negatively affecting Takāful demand across all regions while inflation shows positive impact. Urbanization was found to be significant positive impact on both conventional insurance and Takāful demand. Financial sector development positively triggers the insurance and Takāful demand across ASEAN region, while it triggers conventional insurance demand only in Middle East Region. Education shows negative impact on Takāful demand across both regions while it shows positive impact on insurance demand in Middle East. The study recognises the key role of urbanization and education in creating awareness to enhance Takāful demand in large populated countries of ASEAN and South Asia.

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“…Still, the result must be interpreted with care, due to the strong correlation between schooling and GDP per capita. Hau (2000) analysed 3,143 households from US Survey of Consumer Finances (SCF), and stated that it is unclear if education affects life insurance. Treerattanapun (2011) suggested that tertiary education is not a good proxy for the capacity of a person to understand the complexity of insurance products because the knowledge of these products may not be taught in schools.…”

Section: Literature Reviewmentioning

confidence: 99%

Life and non-life insurance demand: the different effects of influence factors in emerging countries from Europe and Asia

Dragoş

2014

Economic Research-Ekonomska Istraživanja

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Urbanisation, incomes and their distributions, and the population degree of education are relevant factors for the development of insurance sector. This study estimates the different effects of the previously mentioned factors for life and non-life sector. We used the econometrics of panel data on 17 emerging economies from Asia and Europe over a 10-year period. We showed that urbanisation influenced significantly the life insurance demand in Asia, but not in Europe. Also, education was found to be significant only for the non-life sector in both regions and income was nonsignificant in Asia for non-life sector.

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Liquidity, Estate Liquidation, Charitable Motives, and Life Insurance Demand by Retired Singles

Cited by 41 publications

References 28 publications

Life Insurance Lapse Behavior

Life Insurance Lapse Behavior

Determinants of Takāful and conventional insurance demand: A regional analysis

Life and non-life insurance demand: the different effects of influence factors in emerging countries from Europe and Asia

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