The Effects of Social Security on Life Insurance Demand by Married Couples

Fitzgerald, John

doi:10.2307/252883

Cited by 40 publications

(33 citation statements)

References 16 publications

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“…Countries which have a more competitive environment attract more insurance companies to operate and have higher levels of insurance demand, hence hypothesis H10 is proven true. Social expenditure variable did not show any significant relationship with insurance demand which is consistent with the observation of Fitzgerald (1987).…”

Section: Economic Variablessupporting

confidence: 86%

“…Some studies indicate that in countries with higher social expenditure spend there is a lesser need for citizens to spend on life insurance Yaari (1965) hence they are negatively correlated. Social security has little net effect on life insurance demand empirically Fitzgerald (1987). The study further investigates the relation between the two and assumes that the social security expenditure and insurance demand to be negatively correlated.…”

Section: Research Hypothesismentioning

confidence: 99%

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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: Economic Variablessupporting

confidence: 86%

Section: Research Hypothesismentioning

confidence: 99%

Influencers of Life Insurance Investments: Empirical Evidence from Europe

Mitra¹

2017

AABFJ

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“…Consequently, the most recent studies of life insurance demand have utilized either aggregate cross-section data ] Browne and Kim, 1993], cross-section micro data ] Fitzgerald, 1987], or aggregate time series data [Truett and Truett, 1990]. As noted above, however, cross-section research assumes interpersonal consistency of utility, whereas time series studies invoke a less problematic assumption of intertemporally consistent utility.…”

Section: Data and Empirical Resultsmentioning

confidence: 99%

“…Although previous studies of life insurance demand were not designed to test the DARA hypothesis, several studies which included the value of noncontingent financial assets as an independent variable found positive or nonnegative wealth effects [Ferber and Lee, 1980;Fitzgerald, 1987]. Of course, Social Security survivor benefits are a form of contingent wealth which substitutes for privately purchased life insurance [Fitzgerald, 1987]. Studies which used survivor benefits as a proxy for wealth, therefore, obtained negative coefficients [Lewis, 1989].…”

Section: Data and Empirical Resultsmentioning

confidence: 99%

Risk aversion, wealth, and the DARA hypothesis: A new test

Eisenhauer

1997

International Advances in Economic Research

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“…Indeed, a study like Phelps (1973) used insurance price to model insurance demand while Browne and Kim (1993) and Fitzgerald (1987) use quantity of insurance policy taken as representative of insurance demand. It should however be noted that using insurance quantity is often associated with micro-level studies while the macro-level studies, such as this current one, uses insurance price.…”

Section: Issn 1923-4023 E-issn 1923-4031mentioning

confidence: 99%

Financial Development and Life Insurance Demand in Sub-Sahara Africa

Iyawe¹,

Osamwonyi²

2017

IJFR

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This study examines the relationship between financial development and life insurance demand in Sub-Saharan Africa with a sample of fifteen countries. These countries are Nigeria, South Africa, Namibia, Cameroon, Ghana, Cote d'Ivoire, Sudan, Kenya, Uganda, Mozambique, Togo, Benin, Senegal, Cape Verde and Zambia. The specific objectives are to determine the relative effect of financial depth, as well as major macroeconomic factors, preferences and life insurance demand in the sampled countries. It is argued in this study that the traditional textbook and theoretical factors driving demand for life insurance may not be extensively dominant in the case of Sub-Sahara Africa where low formal financial patronage are rife. Using annual data covering the period 1990 -2011 (22 years), the study applies the panel data estimation, which allows for endogenization of individual country characteristics in the analysis. The model adopted in this study categorises all the necessary macroeconomic factors in the study that seek to explain both insurance penetration and insurance density for the sampled countries. The results of the study show that financial development in African countries drives life insurance demand than major macroeconomic factors.

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The Effects of Social Security on Life Insurance Demand by Married Couples

Cited by 40 publications

References 16 publications

Influencers of Life Insurance Investments: Empirical Evidence from Europe

Influencers of Life Insurance Investments: Empirical Evidence from Europe

Risk aversion, wealth, and the DARA hypothesis: A new test

Financial Development and Life Insurance Demand in Sub-Sahara Africa

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