The determination of life premiums: An international cross-section analysis 1970-1981

Michael Beenstock*, Gerry Dickinson, Sajay Khajuria

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

110 Scopus citations

Abstract

A theoretical model is developed in which the supply and demand for life assurance is determined by various economic and social variables. The implications of this model for the determination of premium income are investigated empirically by pooling cross-section and time-series data for ten industrialised countries over the period 1970-1981. We find that life assurance premiums vary directly with life expectancy, the age distribution of the population, the dependency ratio, interest rates and income, but vary inversely with social security coverage. Our results indicate the importance of distinguishing between single and regular premiums but our data prevent us from taking this adequately into account.

Original languageEnglish
Pages (from-to)261-270
Number of pages10
JournalInsurance: Mathematics and Economics
Volume5
Issue number4
DOIs
StatePublished - Oct 1986
Externally publishedYes

Keywords

  • Economic model
  • International life premiums

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