The Approach of Demand Systems in Presenting the Demand Function of Life Insurance in Iran

Life insurance is one of the risk management tools that has a positive effect on reducing the financial risk of individuals, and is a cover for short-term and long-term losses and acts as a kind of long-term investment. It also has a direct impact on economic growth.

The current study intends to present the demand systems, extract the life insurance demand function of Iran and to make an analytical evaluation of the factors affecting life insurance demand in the period 2004-2018, using Eviews 10 software. The selected indices used in the life insurance demand function of Iran are life insurance penetration coefficient, income variables, financial development, real interest rate, inflation rate, dependency rate, education and life expectancy, which are the factors affecting Iranchr('39')s life insurance demand. In the period under review, shows.

The findings of estimating the life insurance demand function show that, Economic indicators, dependency rates and barter are the most important factors in Iranianschr('39') low interest in life insurance. The variables of per capita income, life expectancy, dependency rate, education and financial development have a positive effect on Iranchr('39')s life insurance demand and a negative effect on inflation and interest rates. The variables of per capita income, inflation rate and dependency rate, respectively, have the greatest impact on the demand for life insurance in Iran.

The results show that economic indicators are one of the most influential factors in the demand for life insurance in Iran.