Document Type : Original Research Paper
Authors
Department of Computing Sciences and Insurance Planning, Eco Insurance Institute of Higher Education, Allameh Tabatabai University, Tehran, Iran
Abstract
In this article, in order to identify the factors affecting the demand for accident insurance in Iran, models based on panel data have been used. Then the desired model has been estimated using the information related to the provinces of the country during the period of 2018-2019. The results of Hausman's test and Chow's test confirm the consistency of the estimations based on the regression model of fixed effects. The results of the research show that the most important factors determining the demand for accident insurance in Iran are the population, the amount of damages paid, and income. Based on the obtained results, the demand elasticity of accident insurance compared to income is estimated at 0.32, which shows that this product is a necessary product in Iran. Also, the elasticity of the demand function with respect to the amount of damages paid and population was calculated as 0.127 and 11.42, respectively, which indicates the inelasticity of the demand with respect to the damages paid and its elasticity with respect to the population. Another result of the research is the non-significance of the effect of the inflation rate on the accident insurance demand function.
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