Life insurance demand and borrowing constraints

IF 1.1 Q3 BUSINESS, FINANCE Risk Management and Insurance Review Pub Date : 2021-02-22 DOI:10.1111/RMIR.12166

Bojan Srbinoski, K. Poposki, P. Born, Valter Lazzari

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引用次数: 2

Abstract

In the empirical macroeconomic research, the positive relationship between financial development and life insurance development was taken for granted without delving into the complexity of the issue. Financial development supports life insurance supply by providing confidence in the financial system, more efficient payment systems and higher availability of financial instruments. However, financial development reduces households’ needs to save by relaxing borrowing constraints, indirectly affecting life insurance demand. We contribute by providing a demand-driven explanation of the negative consequences of financial development on life insurance development. We find that more creditconstrained countries have higher life insurance penetration on average. The effect is especially pronounced within high-income countries. The role of borrowing constraints indirectly signifies the importance of life insurance policies as a financing tool in case of realization of various background risks. This study integrates the knowledge from life insurance theory, life insurance lapse, policy loans demand and saving under liquidity constraints literatures and produces implications for researchers, policymakers and life insurers. JEL Classification: G22, G51, O16

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寿险需求与借款约束

在实证宏观经济研究中，金融发展与寿险发展之间的正相关关系被认为是理所当然的，没有深入研究问题的复杂性。金融发展通过提供对金融体系的信心、更有效的支付体系和更高的金融工具可用性来支持人寿保险的供应。然而，金融发展通过放松借贷限制减少了家庭的储蓄需求，间接影响了寿险需求。我们为金融发展对寿险发展的负面影响提供了需求驱动的解释。我们发现，信贷受限程度越高的国家平均寿险渗透率越高。这种影响在高收入国家尤为明显。借款约束的作用间接体现了寿险保单在实现各种背景风险时作为融资工具的重要性。本研究整合了寿险理论、寿险失效、保单贷款需求和流动性约束下的储蓄等文献的知识，为研究者、政策制定者和保险公司提供了参考。JEL分类:G22, G51, O16

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来源期刊

Risk Management and Insurance Review Economics, Econometrics and Finance-Finance

CiteScore

1.90

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0.00%

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期刊介绍： Risk Management and Insurance Review publishes respected, accessible, and high-quality applied research, and well-reasoned opinion and discussion in the field of risk and insurance. The Review"s "Feature Articles" section includes original research involving applications and applied techniques. The "Perspectives" section contains articles providing new insights on the research literature, business practice, and public policy. The "Educational Insights" section provides a repository of high-caliber model lectures in risk and insurance, along with articles discussing and evaluating instructional techniques.