Int. J. of Economics and Business Research   »   2018 Vol.15, No.2



Title: Enhancing life insurance penetration and density in India: purchase intention modelling


Author: Upendra Nath Shukla


Address: Amity University, Uttar Pradesh, Malhaur, Lucknow Campus-226028, U.P, India


Abstract: In the emerging economy like India the level of insurance penetration and density is continuously dropping since the year 2010 (IRDA annual report 2014-15) due to sluggish demand of life insurance because of disinterested individuals to buy life insurance. Consequently to understand the interest level and purchase intention of life insurance in India a survey of 580 individuals is conducted in the city of Lucknow and rural surroundings to understand buying intention of life insurance. Applying logit regression it's estimated that age, education, occupation and willingness to buy life insurance for tax saving are significant parameters to estimate the probability of purchase of life insurance. It's estimated that with increasing age intention to buy life insurance decreases. The above findings seems conducive for growth of industry but life insurance is still not purchased as a basic need which is the major area of concern as well to enhance life insurance penetration and density in India.


Keywords: life insurance; demand; insurance penetration; insurance density; purchase intention; modelling; strategies; policy; Insurance Regulatory and Development Authority; IRDA.


DOI: 10.1504/IJEBR.2018.089683


Int. J. of Economics and Business Research, 2018 Vol.15, No.2, pp.141 - 154


Submission date: 14 Jan 2017
Date of acceptance: 23 Jan 2017
Available online: 12 Jan 2018



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