Document Type : Original Research Paper

Authors

• E. Abasi ¹
• S. Derakhshideh ²

¹ Department of Economics, Islamic Azad University, Tehran Branch, Tehran, Iran

² Department of Economics, Islamic Azad University, Science and Research Unit, Kermanshah, Iran

Abstract

Insurance is one of the most important elements which has an important role in decreasing the risk and ensuring financial and mental security and finally, creating required infrastructures for countries economic development. This study mainly tries to investigate factors affecting demand for life insurance during 1980-1990 in Iran. Factors taken into account are assumed to be a function of such variables as real per capita income, inflation rate (consumer price index), saving rate and literacy rate on the one hand, and demand for life insurance on the other. The Model used in estimation is econometric (VAR). Our results show that variables such as per capita income and saving rate have a positive and significant relationship with the demand for life insurance. However, the consumer price index is negatively and significantly related to the demand for life insurance and also there is no significant relationship between literacy rate and the life insurance demand.

Keywords

• Life Insurance
• VAR
• Saving Rate
• Per Capita Income