AN INTERNATIONAL ANALYSIS OF LIFE-INSURANCE DEMAND

The service sector of the world economy has grown substantially since World War II. The worldwide insurance industry has had an average annual growth rate of over 10 percent since 1950. During the mid-1980s, the international life insurance industry grew at an average annual rate greater than 25 percent. This article identifies factors that lead to variations in the demand for life insurance across countries. Important factors are found to be the dependency ratio, national income, government spending on social security, inflation, the price of insurance, and whether Islam is the predominant religion in a country.