Good Governance and Life Insurance Demand; Economic Challenges in Developing Countries

Life insurance is considered as one of the most important types of insurance industry and an indicator of economic development. Despite overall progress، life insurance products as a need of today’s life have not achieved its deserved place in consumption basket of most developing countries households including Iran. One of the factors with a significant impact on life insurance industry is the quality of governance. The main objective of the present study is to evaluate the impact of good governance on the demand of life insurance in Iran and selected developing countries during the period 2011-1999، using a balanced panel data model. Results show that، good governance indicators have a significant and positive effect on the demand for life insurance. On the other hand، control variables including GDP per capita، financial development and unemployment rat have a significant and direct effect on the demand for life insurance. However، inflation rate has a negative and significant effect on the demand for life insurance in selected developing countries.