Previous studies of life insurance demand mainly employ multivariate regression analysis to examine the social, economic and demographic effects on life insurance purchases. However, this causal modeling approach can not separate the age, period, and cohort effects completely. This study employs cohort analysis method as well as age standardization and decomposition to examine the life insurance purchase pattern in the U.S. from 1940 through 1996. It finds that, without the aging process, the purchase rate in 1990 and 1995 would have been even lower. It also finds that the baby boomers tend to purchase lesser life insurance than their earlier counterparts and that this phenomenon consequently led to the decline of recent life insurance purchases in the U.S. Men show a strong age effect and strong negative cohort effects while women have strong positive cohort effects.
This study examines the presence and causes of the underwriting cycle in Asia. It also compares the characteristics of the underwriting cycle in emerging markets in Asia with its characteristics in developed markets. We found that, first, second-order autoregression results support the existence of the underwriting cycle in Asia. Second, the analysis of premium changes provides some support for the rational expectations/institutional intervention hypothesis. Third, although there is little evidence to prove that the stock markets and interest rates have caused the cycle in Asia, the results seem to indicate that the underwriting cycles in Asian countries are mainly related to the pace of the economic growth in those countries. Fourth, our results with respect to the factors affecting the changes in premiums generally differ from those found for the developed nations.
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