Analysis of Life Insurance and Social Welfare Demand in Iran; Case Study of Parsian Insurance Company

Expanding life insurance prevents class gaps and poverty. The expansion of life insurance is closely related to the level of economic and social well-being in each country. For the purpose, in this study, the combined method of data panel was used. The method of estimating the model is based on a combination of time series data (from 1397 to 1393) and cross-sectional data of all provinces of Iran. Since our focus is on finding the relationship between welfare variables and insurance demand, educational welfare variables have been used to measure educational welfare and the per capita income variable as a physical welfare variable and the income inequality variable as a social welfare variable. Findings showed that the coefficients of variables of physical level and educational level of welfare were both positive and significant, but the coefficients of social level of welfare were negative and non-significant. There is also a significant and negative relationship between insurance rates and demand for life insurance. Management and policy recommendations of this research emphasize on controlling interest and insurance rates due to their effective relationship with life insurance demand. Since the results of the research confirm the existence of an effective relationship between interest and insurance rates with the life insurance demand, so controlling these rates while maintaining their favorable effects can lead to supporting life insurance and thus increase social welfare in society. The government can also increase the level of education and training of people in the community by supporting the public and university education sectors. This measure, according to the results of the research will increase the life insurance demand and increase social welfare. Therefore, paying attention to education and policies to control interest and life insurance rates can lead to an overall improvement in the welfare of society.