The determinants of demand for life insurance in an emerging economy - the case of China.

Hwang, Tienyu and Gao, Simon S (2003) The determinants of demand for life insurance in an emerging economy - the case of China. Managerial Finance, 29 (5/6). pp. 82-96. ISSN 0307 4358

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In the past two decades, many emerging economies have been witnessed the strong growth of their life insurance industry. While research in the demand for life insurance has attracted much attention since the 1960s, most studies have focused on cross-country studies or well-established markets in developed countries. As a result of cross-national variations in life insurance consumption, it has been argued in the literature that factors shaping the demand for life insurance are complex and varied from one country to another. This paper aims to examine key determinants of the demand for life insurance in China with a view to explaining the rapid growth of the life insurance industry in China since its economic reform in 1978. Empirical investigation using a time series data analysis has shown that the main factors which have influenced people in China to purchase life insurance products are directly associated with the successful economic reform leading people to progress to higher layers of economic security, the increase in the level of education and the change in social structure. However, this research has not found a negative effect of inflation on life insurance consumption, even China experienced high inflation in the mid-1990s.

Item Type: Article
Print ISSN: 0307 4358
Electronic ISSN: 1758-7743
Uncontrolled Keywords: Accounting research; China; Demand; Life insurance; Markets
University Divisions/Research Centres: The Business School > School of Accounting, Financial Services and Law
Dewey Decimal Subjects: 600 Technology > 650 Management & public relations > 658 General management
Library of Congress Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Item ID: 4925
Depositing User: Mrs Lyn Gibson
Date Deposited: 25 Jan 2012 11:43
Last Modified: 14 Jun 2013 09:25

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