The Relationship Between Macro Economic Variables and the Demand for life Insurance (Case Study of Iran 1369-1383)

Economic environments have a profound effect on the growth of the insurance industry. History has shown that, although the performance of the insurance industry is closely linked to economic conditions, it has been able to survive in different economic environments. This study is undertaken to examine the demand for life insurance in Iran from a macroeconomic perspective. More formally, the work was carried out in order to study the interaction between the macroeconomic and demographic variables (i.e financial development, income, inflation, interest rate, price, stock market return and life expectancy) and the demand for life insurance in order to seek evidence of their relationship in the context of Iran for the period 1369-83(1990-2004). The major findings of this study indicated that the saving deposits rate, price change, income, stock marked return and life expectancy in insurance are important macroeconomic variables associated with the demand for life insurance in Iran. Further a change in the price of insurance has a significant negative relationship with the demand for life insurance. These findings have an important implication on policy formulation and also for the policy markers in developing pricing strategies. for the policy makers.