Demographic, macroeconomic and institutional determinants of life insurance consumption: evidence from countries in Asia

Abstract

Objective of this paper is to examine the determinants of life insurance consumption in terms of demographic, macroeconomic and institutional conditions from 26 countries from Asia covering the period of 1980 to 2019. The variables including 4 demographic variables, 7 macroeconomic variables and 3 institutional variables are explored by fixed effect estimation. The study also further examines difference of impact in different countries characteristic, that divided into Muslim, High-income and High-aged dependency ratio countries. The findings show that life insurance consumption have significant positive relationship with life expectancy. For high-income country, found that the Aged dependency ratio had less impact than other countries. On the contrary, Health expenditure and Political stability affect life insurance purchase decisions more than any other country. Subsequently, Aged dependency ratio and Inflation had less impact for High-aged dependency ratio countries.