ECONOMIC AND DEMOGRAPHIC DETERMINANTS OF THE DEMAND FOR LIFE INSURANCE: MULTIVARIATE ANALYSIS

Yıl 2018, Cilt: 16 Sayı: 1, 102 - 115, 30.09.2018

Elma Satrovıc Adnan Muslıja

https://doi.org/10.11611/yead.442827

Cited By: 4

Öz

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. 

Anahtar Kelimeler

Life insurance demand, Demographic component, Economic component, Multiple linear regression, Principal component analysis

ECONOMIC AND DEMOGRAPHIC DETERMINANTS OF THE DEMAND FOR LIFE INSURANCE: MULTIVARIATE ANALYSIS

Öz

he 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.

Anahtar Kelimeler

Life Insurance Demand, Demographic Component, Economic Component, Multiple Linear Regression, Principal Component Analysis

Kaynakça

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