Life Insurance Demand in Malaysia

Malaysia has been identified as having the second highest saving in the world; however, less than 30 percent of Malaysia's total population of about 6.4 million is insured in 1999. The fact that a large section of the society remains uninsured means that any sudden loss of property or any pe...

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Main Author:	Wong, Mei Foong
Format:	Thesis
Language:	English English
Published:	2002
Subjects:	Life insurance Insurance life
Online Access:	http://psasir.upm.edu.my/id/eprint/8302/1/FEP_2002_1_IR.pdf
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id	my-upm-ir.8302
record_format	uketd_dc
spelling	my-upm-ir.83022023-12-22T02:57:15Z Life Insurance Demand in Malaysia 2002-02 Wong, Mei Foong Malaysia has been identified as having the second highest saving in the world; however, less than 30 percent of Malaysia's total population of about 6.4 million is insured in 1999. The fact that a large section of the society remains uninsured means that any sudden loss of property or any personal misfortune will suffered a reduction in living standard and poverty. Besides that, savings generated by life insurance companies are crucial in providing long term savings for sustainable economic development and growth of the nation. Nevertheless, the life insurance industry in Malaysia has not been thoroughly investigated Therefore, the objectives of this study are to identify the factors contributing individual purchasing behaviour of life insurance in Malaysia, and to investigate the macroeconomic factors influence on the aggregate demand of life insurance in Malaysia. Since the demand analysis is an important component of an attempt to understand the forces driving industry growth - its past and future prospects. The empirical findings of individual purchasing behaviour of life insurance indicated significant demographic variables including the presence of children in the household, the age of the consumer, and their income level. While, the empirical finding of the multivariate Granger-causality test suggests that national income can be a stimulus to the life insurance demand in the short-run. The results of Granger-causality test also indicate that there is bidirectional causality between the price of life insurance and life insurance demand in Malaysia. Furthermore, the empirical results also showed that the interest rate significantly influence the life insurance demand in Malaysia. However, the causality tests of this study did not detect a significant short-run direct causal relationship between inflation rates and life insurance demand in Malaysia. Last but not least, the finding of the Data Envelopment Analysis (DEA) approach indicated the demand for life insurance in Malaysia is closely linked to the efficiency scores of insurance companies. Over the empirical years, most of the local constituted insurance companies operate in inefficiency state compared to the foreign Insurance companies. Life insurance Insurance life 2002-02 Thesis http://psasir.upm.edu.my/id/eprint/8302/ http://psasir.upm.edu.my/id/eprint/8302/1/FEP_2002_1_IR.pdf text en public masters Universiti Putra Malaysia Life insurance Insurance life Faculty of Economics and Management Tan, Hui Boon English
institution	Universiti Putra Malaysia
collection	PSAS Institutional Repository
language	English English
advisor	Tan, Hui Boon
topic	Life insurance Insurance life
spellingShingle	Life insurance Insurance life Wong, Mei Foong Life Insurance Demand in Malaysia
description	Malaysia has been identified as having the second highest saving in the world; however, less than 30 percent of Malaysia's total population of about 6.4 million is insured in 1999. The fact that a large section of the society remains uninsured means that any sudden loss of property or any personal misfortune will suffered a reduction in living standard and poverty. Besides that, savings generated by life insurance companies are crucial in providing long term savings for sustainable economic development and growth of the nation. Nevertheless, the life insurance industry in Malaysia has not been thoroughly investigated Therefore, the objectives of this study are to identify the factors contributing individual purchasing behaviour of life insurance in Malaysia, and to investigate the macroeconomic factors influence on the aggregate demand of life insurance in Malaysia. Since the demand analysis is an important component of an attempt to understand the forces driving industry growth - its past and future prospects. The empirical findings of individual purchasing behaviour of life insurance indicated significant demographic variables including the presence of children in the household, the age of the consumer, and their income level. While, the empirical finding of the multivariate Granger-causality test suggests that national income can be a stimulus to the life insurance demand in the short-run. The results of Granger-causality test also indicate that there is bidirectional causality between the price of life insurance and life insurance demand in Malaysia. Furthermore, the empirical results also showed that the interest rate significantly influence the life insurance demand in Malaysia. However, the causality tests of this study did not detect a significant short-run direct causal relationship between inflation rates and life insurance demand in Malaysia. Last but not least, the finding of the Data Envelopment Analysis (DEA) approach indicated the demand for life insurance in Malaysia is closely linked to the efficiency scores of insurance companies. Over the empirical years, most of the local constituted insurance companies operate in inefficiency state compared to the foreign Insurance companies.
format	Thesis
qualification_level	Master's degree
author	Wong, Mei Foong
author_facet	Wong, Mei Foong
author_sort	Wong, Mei Foong
title	Life Insurance Demand in Malaysia
title_short	Life Insurance Demand in Malaysia
title_full	Life Insurance Demand in Malaysia
title_fullStr	Life Insurance Demand in Malaysia
title_full_unstemmed	Life Insurance Demand in Malaysia
title_sort	life insurance demand in malaysia
granting_institution	Universiti Putra Malaysia
granting_department	Faculty of Economics and Management
publishDate	2002
url	http://psasir.upm.edu.my/id/eprint/8302/1/FEP_2002_1_IR.pdf
_version_	1794018736670244864

Life Insurance Demand in Malaysia

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