The dynamics of life insurance demand in Bangladesh: An empirical analysis of socio-economic influences
Type of the article: Research Article AbstractThis study examines the influence of socio-economic factors on life insurance demand in Bangladesh using annual data from 18 life insurance companies between 2014 and 2023. Life insurance demand is assessed using life insurance penetration and life insu...
Saved in:
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
LLC "CPC "Business Perspectives"
2025-07-01
|
| Series: | Insurance Markets and Companies |
| Subjects: | |
| Online Access: | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/22623/IMC_2025_02_Hasan.pdf |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1849245424208052224 |
|---|---|
| author | Shaikh Masrick Hasan Sonia Munmun Priya Saha |
| author_facet | Shaikh Masrick Hasan Sonia Munmun Priya Saha |
| author_sort | Shaikh Masrick Hasan |
| collection | DOAJ |
| description | Type of the article: Research Article
AbstractThis study examines the influence of socio-economic factors on life insurance demand in Bangladesh using annual data from 18 life insurance companies between 2014 and 2023. Life insurance demand is assessed using life insurance penetration and life insurance density; GDP per capita, inflation, healthcare spending to GDP, and education spending to GDP serve as proxies for socio-economic variables. This study employs a dynamic Panel-Corrected Standard Errors (PCSE) method to handle cross-sectional dependence in panel data. Stepwise regression is further applied as a robustness check. The findings exhibit that GDP per capita has a statistically significant negative impact on insurance density (β = –0.0003, P < 0.001) and insurance penetration (β = –0.000002, P < 0.001). This suggests that income growth does not facilitate increased insurance adoption. In contrast, inflation has a significant positive influence on both insurance density (β = 0.0310, P < 0.001) and insurance penetration (β = 0.0001, P < 0.001), emphasizing the influence of inflationary pressure on life insurance demand. Similarly, healthcare expenditure exhibits a significant positive effect on life insurance demand, influencing both insurance density (β = 2.0560, P < 0.01) and insurance penetration (β = 0.0024, P < 0.05), possibly due to rising healthcare costs prompting individuals to seek financial security. However, education spending does not show a statistically significant effect on life insurance demand. The results indicate that demand for life insurance in Bangladesh is influenced more by financial insecurity than by income increases, emphasizing the impact of inflation and healthcare expenses on insurance adoption. |
| format | Article |
| id | doaj-art-fcf66294737c4f12bac577c715c11dcc |
| institution | Kabale University |
| issn | 2616-3551 2522-9591 |
| language | English |
| publishDate | 2025-07-01 |
| publisher | LLC "CPC "Business Perspectives" |
| record_format | Article |
| series | Insurance Markets and Companies |
| spelling | doaj-art-fcf66294737c4f12bac577c715c11dcc2025-08-20T03:58:49ZengLLC "CPC "Business Perspectives"Insurance Markets and Companies2616-35512522-95912025-07-01162112310.21511/ins.16(2).2025.0222623The dynamics of life insurance demand in Bangladesh: An empirical analysis of socio-economic influencesShaikh Masrick Hasan0https://orcid.org/0000-0002-5321-119XSonia Munmun1https://orcid.org/0009-0002-8860-3799Priya Saha2https://orcid.org/0009-0004-1205-4097Ph.D., Associate Professor, Department of Finance, Faculty of Business Studies, Jagannath University, BangladeshMBA, Assistant Professor, Faculty of Business Studies, Department of Finance, Jagannath University, BangladeshResearch Assistant & MBA Student, Department of Finance, Faculty of Business Studies, Jagannath University, BangladeshType of the article: Research Article AbstractThis study examines the influence of socio-economic factors on life insurance demand in Bangladesh using annual data from 18 life insurance companies between 2014 and 2023. Life insurance demand is assessed using life insurance penetration and life insurance density; GDP per capita, inflation, healthcare spending to GDP, and education spending to GDP serve as proxies for socio-economic variables. This study employs a dynamic Panel-Corrected Standard Errors (PCSE) method to handle cross-sectional dependence in panel data. Stepwise regression is further applied as a robustness check. The findings exhibit that GDP per capita has a statistically significant negative impact on insurance density (β = –0.0003, P < 0.001) and insurance penetration (β = –0.000002, P < 0.001). This suggests that income growth does not facilitate increased insurance adoption. In contrast, inflation has a significant positive influence on both insurance density (β = 0.0310, P < 0.001) and insurance penetration (β = 0.0001, P < 0.001), emphasizing the influence of inflationary pressure on life insurance demand. Similarly, healthcare expenditure exhibits a significant positive effect on life insurance demand, influencing both insurance density (β = 2.0560, P < 0.01) and insurance penetration (β = 0.0024, P < 0.05), possibly due to rising healthcare costs prompting individuals to seek financial security. However, education spending does not show a statistically significant effect on life insurance demand. The results indicate that demand for life insurance in Bangladesh is influenced more by financial insecurity than by income increases, emphasizing the impact of inflation and healthcare expenses on insurance adoption.https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/22623/IMC_2025_02_Hasan.pdfBangladeshinsurance densityinsurance penetrationlife insurance demandpanel datasocio-economic variables |
| spellingShingle | Shaikh Masrick Hasan Sonia Munmun Priya Saha The dynamics of life insurance demand in Bangladesh: An empirical analysis of socio-economic influences Insurance Markets and Companies Bangladesh insurance density insurance penetration life insurance demand panel data socio-economic variables |
| title | The dynamics of life insurance demand in Bangladesh: An empirical analysis of socio-economic influences |
| title_full | The dynamics of life insurance demand in Bangladesh: An empirical analysis of socio-economic influences |
| title_fullStr | The dynamics of life insurance demand in Bangladesh: An empirical analysis of socio-economic influences |
| title_full_unstemmed | The dynamics of life insurance demand in Bangladesh: An empirical analysis of socio-economic influences |
| title_short | The dynamics of life insurance demand in Bangladesh: An empirical analysis of socio-economic influences |
| title_sort | dynamics of life insurance demand in bangladesh an empirical analysis of socio economic influences |
| topic | Bangladesh insurance density insurance penetration life insurance demand panel data socio-economic variables |
| url | https://www.businessperspectives.org/images/pdf/applications/publishing/templates/article/assets/22623/IMC_2025_02_Hasan.pdf |
| work_keys_str_mv | AT shaikhmasrickhasan thedynamicsoflifeinsurancedemandinbangladeshanempiricalanalysisofsocioeconomicinfluences AT soniamunmun thedynamicsoflifeinsurancedemandinbangladeshanempiricalanalysisofsocioeconomicinfluences AT priyasaha thedynamicsoflifeinsurancedemandinbangladeshanempiricalanalysisofsocioeconomicinfluences AT shaikhmasrickhasan dynamicsoflifeinsurancedemandinbangladeshanempiricalanalysisofsocioeconomicinfluences AT soniamunmun dynamicsoflifeinsurancedemandinbangladeshanempiricalanalysisofsocioeconomicinfluences AT priyasaha dynamicsoflifeinsurancedemandinbangladeshanempiricalanalysisofsocioeconomicinfluences |