Original scientific paper
Determinants of life insurance demand in new EU member states: panel data analysis
Mihovil Anđelinović
orcid.org/0000-0003-2061-0693
; Faculty of Economics and Business, University of Zagreb, Zagreb, Croatia
Petar Mišević
; Croatian Chamber of Economy, Zagreb, Croatia
Ana Pavković
orcid.org/0000-0003-0567-7558
; Faculty of Economics and Business, University of Zagreb, Zagreb, Croatia
Abstract
The paper analyzes determinants of demand for life insurance products in thirteen countries of the
European Union. The expected demand determinants cover sixteen factors divided into macroeconomic,
demographic, social and institutional variables. The main aim of the paper is to identify the variables
that best explain variations in demand for life insurance and to draw a conclusion as to whether policy
makers can contribute to the development of the life insurance market. For this purpose, an unbalanced
panel model with a fixed effect for the period from 1995 to 2014 was estimated. The most important
variables were macroeconomic ones, especially gross domestic product per capita. Insurance companies
need to take into account demographic trends and existing economic situations in the respective
economies when developing their products, and as analysis indicates, they have to make efforts in
educating the population concerning the benefits of life insurance and the need for long-term savings.
Keywords
life insurance demand; new EU Member States; panel data analysis
Hrčak ID:
171188
URI
Publication date:
21.12.2016.
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