European Union, Economic Growth, Investment Decisions, Insurance

The main purpose of the study is to identify the economic, cultural and demographic determinants of life insurance consumption for 28 European countries. The study used panel data analysis techniques over the post financial crisis period 2009-2014 and considers many of the emerging Eastern European economies where there have been significant insurance sectors reforms recently. Europe is the largest insurance market with 35% of the overall insurance premium contribution but ranked third in insurance per capita in 2014, hence Europe is an interesting region to study the insurance demand. Among the explanatory variables assumed in the study, gross savings, inflation, GDP and openness of economy (economic variables), population (demographic variable), power distance, uncertainty avoidance, long term orientation and individualism (cultural variables) have been observed to have a significant impact on life insurance demand in the European region.

1. A. Chui and C. Kwok, “National Culture and Life Insurance Consumption”, Journal of International Business Studies, 39, 88‐101, (2008).
2. Anderson D.R. and Nevin J.R, “Determinants of Young Marrieds’ Life Insurance Purchasing Behavior: An Empirical Investigation”, Journal of Risk and Insurance 42, 375‐387, (1975).
3. Beenstock, M., G. Dickinson and S. Khajuria, “The Determinants of Life Premiums: An International Cross-Section Analysis 1970-1981”, Insurance Mathematics and Economics 5, 261-270, (1986).
4. Beck T. and Webb I., “Economic, Demographic and Institutional Determinants of Life Insurance Consumption across Countries”, The World Bank Economic Review 17, 51-88, (2003).
5. Browne, M. J. and K. Kim, “An International Analysis of Life Insurance Demand”, Journal of Risk and Insurance 60, 616-634, (1993).
6. Burnett J.J. and Palmer B.A., “Examining Life Insurance Ownership through Demographic and Psychographic Characteristics”, Journal of Risk and Insurance 51, 453-467 (1984).
7. C. Zhang and Nong, “Determinants of the Development of Insurance in China under the globalization”, (2005).
8. DePamphlis, D. M., “Variation in Individual Life Insurance Premium Revenues: An Econometric Approach”, Journal of Risk and Insurance 44, 67-76, (1977).
9. Diacon, S. R., “The Demand for U. K. Ordinary Life Insurance: 1946-1968”, Geneva Papers on Risk and Insurance 24, 19-50, (1980).
10. Faisal, Stanley & Chris, “Insurance, Systemic Risk and the Financial Crisis”, The Geneva Papers 36, 126-163, (2011). 
11. Fitzgerald, J, “The Effects of Social Security on Life Insurance Demand by Married Couples”, Journal of Risk and Insurance 54, 86-99, (1987).
12. Hammond J.P. Houston D.B. and Melander E.R., “Determinants of Household Life Insurance Premium Expenditures: An Empirical Investigation”, Journal of Risk and Insurance 34, 397-408, (1967).
13. Headen, R. S. and L. J. Finley, “Life Insurance Demand and Household Portfolio Behaviour”, Journal of Risk and Insurance 41, 685-698, (1974).
14. Hofflander and Duvall, “Inflation and Sales of Life Insurance”, Risk and Insurance 34, 355-61, (1967).
15. Hofstede, G., “Culture's consequences: Comparing values, behaviors, institutions, and organizations across nations”, Thousand Oaks, CA: Sage Publications, Inc 2, (2003).
16. Hwang T. and Greenford B, “A Cross-Section Analysis of the Determinants of Life Insurance Consumption in Mainland China, Hong Kong, and Taiwan”, Risk Management and Insurance Review 8, 103-125, (2005).
17. Karni, E. and I. Zilcha, “Risk Aversion in the Theory of Life Insurance: TheFisherian Model”, Journal of Risk and Insurance 53, 606-620, (1986).
18. Li D., Moshirian F., Nguyen P. and Wee T., “The Demand for Life Insurance in OECD Countries”, Journal of Risk and Insurance 74, 637-652, (2007).
19. Lim, C.C. and S. Haberman, “Modelling Life Insurance Demand from a Macroeconomic Perspective: The Malaysian Case”, Research Paper: The 8th International Congress on Insurance, Mathematics and Economics, Rome, 3-9, (2004).
20. Mantis, G. and R. N. Farmer, “Demand for Life Insurance”, Journal of Risk and Insurance 35, 247-256, (1968).
21. Neumann S., “Inflation and Saving through Life Insurance”, Journal of Risk and Insurance 5, 567-582, (1969).
22. Pratt, J. W, “Risk Aversion in the Small and in the Large”, Econometrica 32, 122-136, (1964).
23. Outreville J.F., “Life Insurance Markets in Developing Countries”, Journal of Risk and Insurance 63, 263-278, (1996).
24. Schlag, C-H., “Determinants of demand for life insurance products - Theoretical concepts and empirical evidence”, Swiss Re Economic Research & Consulting, 8-9, (2003).
25. Schwebler, R., “Identification and Quantification of the Overall Impact of the National Economy on Life Assurance in the Federal Republic of Germany”, The Geneva Papers on Risk and Insurance 32, 280-298, (1984).
26. Park, J. Lemaire, and C.T. Chua, “Is the Design of Bonus‐Malus Systems Influenced by Insurance Maturity or National Culture?”, The Geneva Papers 35, 2-21, (2010).
27. Sibel, C. and Mustafa M.K, “Determinants of demand for Life Insurance in European Countries”, Problems and Perspectives in Management 7, 33-35, (2009).
28. Szpiro, G. G., “Optimal Insurance Coverage”, Journal of Risk and Insurance 52, 705-710 (1985).
29. Treerattanapun A., “The Impact of Culture on Non-Life Insurance Consumption”, Wharton Research Scholars Journal 78, 6‐12, (2011).
30. Truett, D. B. and L. J. Truett, “The Demand for Life Insurance in Mexico and the United States: A Comparative Study”, Journal of Risk and Insurance 57, 321-328, (1990).
31. Ward, D. and R. Zurbruegg, “Law, Politics and Life Insurance Consumption in Asia”, The Geneva Papers on Risk and Insurance 27, 395-412, (2002).
32. Yaari, M. E., “Uncertain Lifetime, Life Insurance, and the Theory of the Consumer”, Review of Economics Studies 32, 137-150 (1965).
33. Zhuo, Z., “Demand for Life Insurance: An Empirical Analysis on China”, Zeitschrift fur Versicherungwesen 32, 6-7, (1999).
34. Yaari, M. E., “Uncertain Lifetime, Life Insurance, and the Theory of the Consumer”, Review of Economics Studies 32, 137-150 (1965).