Estimating the Demand Function for Life Insurance (1991-2013)

The main aim of this study was to estimate the demand function for life insurance in Iran and to analyze the demand behavior towards life insurance from 1991 until 2013. In this regard, the research model was estimated to be the OLS method. The research results indicated that the most important determining factors in the demand for life insurance in Iran were income, literacy rate, life expectancy, and financial development. Moreover, the income elasticity of demand for life insurance was greater than one. The results of this study are useful for insurance companies to become acquainted with the behavior towards purchasing insurance in the country. Furthermore, the government can identify the factors influencing the demand for insurance at the macro level and make plans accordingly.