The Impact of Socio-Economic and Financial Factors on Insurance Demand

This study analyses the relationship between insurance demand and socioeconomic and financial factors in OECD member countries from 2011 to 2020. The study categorizes the independent variables into three groups: macroeconomic, financial, and social factors, with the dependent variable being the gross insurance premium amount. The panel analysis results show that all independent variables are significant in relation to the dependent variable. Empirical results show a positive relationship between income, public expenditures, pension expenditures, financial development, education level, and life expectancy at birth with insurance demand in OECD countries. In addition, the study concludes that public expenditure and the level of education are the most important determining factors in OECD countries.