Determinants for demand of life insurance in European countries / Malinda Kamarolzaman

This paper investigates the determinants for demand of life insurance in European countries by analyzing the relationship between level of income, level of inflation, life expectancy, level of education and level of urbanization. This study covers 11 European countries out of 28 listed. 11 countries were chosen as a sample were identified as the sample countries and microeconomic data from the year of 2005 to 2014 were used as observations for this study, resulting in a total number of observations of 110. A multiple linear regression analysis was executed in this study to see the relationship between dependent and independent variables. The dependent variable is the demand of life insurance in which density of life insurance will be the proxy of the countries demand, whereas the independent variables are level of income, level of inflation, level of urbanization, level of education and life expectancy at birth. The study finds level of income and level of urbanization have significant effect on the demand of life insurance, while the rest has no significant effect on the demand of life insurance.