- Yönetim ve Ekonomi Araştırmaları Dergisi
- Vol: 16 Issue: 1 Special Issue
- ECONOMIC AND DEMOGRAPHIC DETERMINANTS OF THE DEMAND FOR LIFE INSURANCE: MULTIVARIATE ANALYSIS
ECONOMIC AND DEMOGRAPHIC DETERMINANTS OF THE DEMAND FOR LIFE INSURANCE: MULTIVARIATE ANALYSIS
Authors : Elma Satrovic, Adnan Muslija
Pages : 102-115
Doi:10.11611/yead.442827
View : 5 | Download : 1
Publication Date : 2018-09-30
Article Type : Research
Abstract :The aim of this paper is to summarize a large number of economic and demographic determinants that are used to predict the demand for life insurance into a smaller number of component variables (components) and to determine which component has a stronger influence on demand for life insurance. Data are collected for 150 countries during the period 2005-2010. Final cross-country database is consisted of six-year average values on variables for selected countries. The methodology includes techniques of multivariate analysis: principal component analysis (PCA) and multiple linear regression. Results show that initial determinants of demand for life insurance can be summarized into two components: economic and demographic. Both components have a statistically significant positive influence on the demand for life insurance. On the basis of standardized regression coefficients it can be concluded that economic component is stronger determinant of demand for life insurance in comparison with demographic.Keywords : Life insurance demand, Demographic component, Economic component, Multiple linear regression, Principal component analysis