Factors influencing demand for life insurance in india: an empirical analysis

Das, Sampriti and Swaroopa, Jetti (2025) Factors influencing demand for life insurance in india: an empirical analysis. The IUP Journal of Applied Economics, 24 (3). pp. 58-86. ISSN 09726861

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Abstract

In the backdrop of a staggering market for life insurance in India, this paper explores the responsiveness of India’s aggregate demand for life insurance to key macroeconomic and demographic developments, over the period 1991-92 to 2021-22. Structured on the edifice of simple economic models and state-of-the-art techniques that undercuts the bias in extant studies, the results of the study unravel significant long-run relationships underlying both per capita and absolute demand for life insurance in the country. Among other things, the study finds household savings per capita to have an asymmetrical effect on this demand, in terms of both direction and magnitude. While savings and acquisition of funds make life insurance affordable and raise its demand, acquired funds, in the long run, also act as self-insurance, offsetting the very need for insurance altogether. Threat to this self-insurance is a prime driver of demand for market-based life insurance.

Item Type:	Article
Authors:	Das, Sampriti and Swaroopa, Jetti
Document Language:	Language English
Subjects:	Social sciences > Economics > Financial economics > Banks
Divisions:	Azim Premji University - Ranchi > School of Development
Full Text Status:	Restricted
URI:	http://publications.azimpremjiuniversity.edu.in/id/eprint/7732
Publisher URL:	https://doi.org/10.71329/IUPJAE%2F2025.24.3.58-86

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