Modelling the demand for life insurance in Malaysia

This study is undertaken to better understand the relationship between life insurance demand and macroeconomic factors by cointegration analysis and ordinary least squares (OLS) estimation. The major findings of this study show that there is no equilibrium (long-term) relationship between life insur...

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Main Author: Lim, Chee Chee
Format: Monograph
Language:English
Published: Universiti Utara Malaysia 2012
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Online Access:http://repo.uum.edu.my/12772/1/Lim.pdf
http://repo.uum.edu.my/12772/
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spelling my.uum.repo.127722016-04-20T04:38:12Z http://repo.uum.edu.my/12772/ Modelling the demand for life insurance in Malaysia Lim, Chee Chee HD28 Management. Industrial Management This study is undertaken to better understand the relationship between life insurance demand and macroeconomic factors by cointegration analysis and ordinary least squares (OLS) estimation. The major findings of this study show that there is no equilibrium (long-term) relationship between life insurance demand (in terms of new sum insured, new annual premium, sum insured in force and annual premium in force) and the macroeconomic factors, namely GDP per capita, the discount rate of Treasury Bill, inflation and the level of financial development. However, inflation is found to be significantly positively associated with life insurance demand by new sum insured.The latter finding possibly suggests that Malaysians tend to purchase a bigger amount (nominal value) of life insurance as a bequeath to their beneficiaries in an inflationary environment in order to maintain their purchasing power for the untimely death of the insured persons. Universiti Utara Malaysia 2012 Monograph NonPeerReviewed application/pdf en http://repo.uum.edu.my/12772/1/Lim.pdf Lim, Chee Chee (2012) Modelling the demand for life insurance in Malaysia. Project Report. Universiti Utara Malaysia, Sintok. (Unpublished)
institution Universiti Utara Malaysia
building UUM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Utara Malaysia
content_source UUM Institutionali Repository
url_provider http://repo.uum.edu.my/
language English
topic HD28 Management. Industrial Management
spellingShingle HD28 Management. Industrial Management
Lim, Chee Chee
Modelling the demand for life insurance in Malaysia
description This study is undertaken to better understand the relationship between life insurance demand and macroeconomic factors by cointegration analysis and ordinary least squares (OLS) estimation. The major findings of this study show that there is no equilibrium (long-term) relationship between life insurance demand (in terms of new sum insured, new annual premium, sum insured in force and annual premium in force) and the macroeconomic factors, namely GDP per capita, the discount rate of Treasury Bill, inflation and the level of financial development. However, inflation is found to be significantly positively associated with life insurance demand by new sum insured.The latter finding possibly suggests that Malaysians tend to purchase a bigger amount (nominal value) of life insurance as a bequeath to their beneficiaries in an inflationary environment in order to maintain their purchasing power for the untimely death of the insured persons.
format Monograph
author Lim, Chee Chee
author_facet Lim, Chee Chee
author_sort Lim, Chee Chee
title Modelling the demand for life insurance in Malaysia
title_short Modelling the demand for life insurance in Malaysia
title_full Modelling the demand for life insurance in Malaysia
title_fullStr Modelling the demand for life insurance in Malaysia
title_full_unstemmed Modelling the demand for life insurance in Malaysia
title_sort modelling the demand for life insurance in malaysia
publisher Universiti Utara Malaysia
publishDate 2012
url http://repo.uum.edu.my/12772/1/Lim.pdf
http://repo.uum.edu.my/12772/
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score 13.144533