Influence of Secondary and Tertiary Literacy on Life Insurance Consumption: Case of Selected ASEAN Countries

Abstract

Life insurance as a financial tool is essential to both individuals and the economy for the promotion of long-term savings, the reinvestment of funds, risk management and the development of capital markets to support economic growth. The determinants of life insurance consumption from the economic and demographic perspectives were examined in the ASEAN context. The influence of secondary and tertiary education on the demand for life insurance was investigated to highlight the importance of introducing insurance knowledge in the education syllabus in order to improve the economy in the future with better income and social returns, supported by the life insurance market. This will ensure a sound risk management strategy among individuals, firms and countries as a whole and will align with the ASEAN Economic Community blueprint aimed at improving the living standards of the community.

Does Efficiency Promote Competitiveness of the Insurance Industry?

“…Being the first country in the world to implement a risk based capital framework in Malaysia presents an ideal opportunity to test the efficiencies and competitiveness in Malaysia due to the coexistence of a thriving Takaful insurance market and the less developed financial markets (Lee et al, 2018). Currently, the Malaysian Islamic finance brand name has surged drastically and has become a mainstream platform.…”

“…Strong financial fundamentals combined with industry strength are vital for insurance-based companies to continuously do well in their business. This paper analyses the Earnings Response Coefficients (ERCs, Biener, Eling and Wirfs (2016) and Lee, Low, Chong and Sia (2018), in addition to its importance in reducing potential credit crises that slow potential bank run disasters. Takaful emphasises the need for transactions to be supported by genuine (Halal) trade or business-related activities and to be governed by Islamic finance law to set a higher standard for investments and promote greater accountability and risk mitigation.…”

“…They also face additional challenges from inadequate regulation (and inadequate enforcement of regulation. Lee et al (2018) indicated that emerging markets offer plenty growth prospect for insurance companies and Sufian (2011) believed that the Asian financial reform after the Asian financial crisis in 1997 will enable financial institutions in Asian countries to take advantage of economies of scale. Thus, Malaysia as a less developed economy in Asia would be an ideal testing ground for various hypotheses.…”

Microgrids for rural schools: An energy-education accord to curb societal challenges for sustainable rural developments

“…In addition, one in every four girls in a developing country have never been enrolled in a school (Jha et al, 2011;Li, Mattes, Stanley, McMurray, & Hertzman, 2009;Roy & Chattopadhyay, 2012). These situations are prominent in the remote locations of developing countries where a contrasting difference lies in the literacy rate of the urban and the rural dwellers (Chu, Wang, Xiao, & Zhang, 2017;Karakurum-Ozdemir, Kokkizil, & Uysal, 2018;Kararach et al, 2018;Lee, Low, Chong, & Sia, 2018). With a lower literacy rate in the villages, a dominant population lacks basic knowledge of energy management, sanitation, health care and wellbeing, in addition to increased inequalities and gender discrimination in the society.…”

Impacts of Risk Based Capital Regulation in Malaysian Islamic Insurers (Takaful)

“…Prudent capital risk management practices among banks and non-banks financial institutions are important to ensure a strong and healthy growth in the financial service sector (Huang & Paradi, 2011;Zakaria, 2017). Islamic insurance (Takaful) is a type of non-banks financial institutions that plays important roles to allocate efficient financial resources, produce liquidity, diversify financial losses and facilitate investment in an economy (Alhassan & Biekpe, 2016;Fah & Sin, 2014;Lee, Low, Chong, & Sia, 2018;Shan, Teng, Kai, & Chuan, 2016). The strong ethics of fairness in the Takaful (Islamic insurance) that leads to social integrity and environmentally friendly focus for developing economic activity have its appeal to a wide range of stakeholders (Salleh, 2016).…”