TY - JOUR
T1 - The determination of life premiums
T2 - An international cross-section analysis 1970-1981
AU - Beenstock, Michael
AU - Dickinson, Gerry
AU - Khajuria, Sajay
PY - 1986/10
Y1 - 1986/10
N2 - 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.
AB - 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.
KW - Economic model
KW - International life premiums
UR - http://www.scopus.com/inward/record.url?scp=38249040986&partnerID=8YFLogxK
U2 - 10.1016/0167-6687(86)90020-X
DO - 10.1016/0167-6687(86)90020-X
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AN - SCOPUS:38249040986
SN - 0167-6687
VL - 5
SP - 261
EP - 270
JO - Insurance: Mathematics and Economics
JF - Insurance: Mathematics and Economics
IS - 4
ER -