The Non-Monotonic Relationship Between Income and Life Insurance Demand: A Case Study of Forty-One Countries
Income is often viewed as the main determinant of life insurance demand. However, in the last two decades, the world’s life insurance penetration has continued to decrease even as income grows. This study investigates the relationship between income and life insurance demand using panel data from fo...
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| Format: | Article |
| Language: | English |
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MDPI AG
2024-12-01
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| Series: | Economies |
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| Online Access: | https://www.mdpi.com/2227-7099/13/1/4 |
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| author | Kristio Rapi Dominicus S. Priyarsono Siti Jahroh Toni Bakhtiar |
| author_facet | Kristio Rapi Dominicus S. Priyarsono Siti Jahroh Toni Bakhtiar |
| author_sort | Kristio Rapi |
| collection | DOAJ |
| description | Income is often viewed as the main determinant of life insurance demand. However, in the last two decades, the world’s life insurance penetration has continued to decrease even as income grows. This study investigates the relationship between income and life insurance demand using panel data from forty-one countries from 2013 to 2022, along with education and life expectancy as control variables. The study finds a non-monotonic relationship between income and life insurance penetration and between education and life insurance penetration, while life expectancy shows a monotonic relationship with life insurance penetration. This study provides significant policy implications for insurers to predict life insurance demand and suggests that non-high-income countries emphasize the improvement of their life insurance sector development. |
| format | Article |
| id | doaj-art-de797c9dd4d64f45b0bd2c287abf18f4 |
| institution | Kabale University |
| issn | 2227-7099 |
| language | English |
| publishDate | 2024-12-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Economies |
| spelling | doaj-art-de797c9dd4d64f45b0bd2c287abf18f42025-01-24T13:29:58ZengMDPI AGEconomies2227-70992024-12-01131410.3390/economies13010004The Non-Monotonic Relationship Between Income and Life Insurance Demand: A Case Study of Forty-One CountriesKristio Rapi0Dominicus S. Priyarsono1Siti Jahroh2Toni Bakhtiar3School of Business, IPB University, Bogor 16128, IndonesiaDepartment of Economics, IPB University, Bogor 16680, IndonesiaSchool of Business, IPB University, Bogor 16128, IndonesiaDepartment of Mathematics, IPB University, Bogor 16680, IndonesiaIncome is often viewed as the main determinant of life insurance demand. However, in the last two decades, the world’s life insurance penetration has continued to decrease even as income grows. This study investigates the relationship between income and life insurance demand using panel data from forty-one countries from 2013 to 2022, along with education and life expectancy as control variables. The study finds a non-monotonic relationship between income and life insurance penetration and between education and life insurance penetration, while life expectancy shows a monotonic relationship with life insurance penetration. This study provides significant policy implications for insurers to predict life insurance demand and suggests that non-high-income countries emphasize the improvement of their life insurance sector development.https://www.mdpi.com/2227-7099/13/1/4life insurance demandnon-monotonic relationshipincome |
| spellingShingle | Kristio Rapi Dominicus S. Priyarsono Siti Jahroh Toni Bakhtiar The Non-Monotonic Relationship Between Income and Life Insurance Demand: A Case Study of Forty-One Countries Economies life insurance demand non-monotonic relationship income |
| title | The Non-Monotonic Relationship Between Income and Life Insurance Demand: A Case Study of Forty-One Countries |
| title_full | The Non-Monotonic Relationship Between Income and Life Insurance Demand: A Case Study of Forty-One Countries |
| title_fullStr | The Non-Monotonic Relationship Between Income and Life Insurance Demand: A Case Study of Forty-One Countries |
| title_full_unstemmed | The Non-Monotonic Relationship Between Income and Life Insurance Demand: A Case Study of Forty-One Countries |
| title_short | The Non-Monotonic Relationship Between Income and Life Insurance Demand: A Case Study of Forty-One Countries |
| title_sort | non monotonic relationship between income and life insurance demand a case study of forty one countries |
| topic | life insurance demand non-monotonic relationship income |
| url | https://www.mdpi.com/2227-7099/13/1/4 |
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