Abstract
Life insurance has become a stable and progressive market keep improving as one of the key financial pillars in Malaysia. However, current consumption rate of 55.5% is considered low and there were more prospects for life insurance companies to grow in suburban and rural areas as the concentration now is more in urban areas. Thereby, there is a need to extend and focus on the rest of uninsured population at which high proportion to be concentrated on both suburban and rural areas. This study aims to determine demographics, economics and psychographics factors that influence consumer purchasing decisions of life insurance among 1,256 school teachers in Kampar district. The stratified random sampling technique applied in order to select the respondents for this study and the data has been analyzed by using multiple regression model. The justification for selecting this technique is to ensure that all schools in Kampar district have its representative. This study found that personality behavior in psychographic factor is positively and significant determinant of life insurance consumption among school teachers in Kampar District. This study will significant towards growth of insurance industry, whereby it wills benefits governmental or non-governmental agencies.
Highlights
Life insurance provides insurance protection to 55.5% over 30 million of Malaysian population (LIAM, 2015)
As reported in Financial Stability and Payment Systems (FSPSR), life insurance industry for 2014 recorded a 6.9% growth in insurance protection to RM1.17 trillion compared to the previous year
We focus on 1256 school teachers from 37 schools located in Kampar district, Perak, Malaysia
Summary
Life insurance provides insurance protection to 55.5% over 30 million of Malaysian population (LIAM, 2015) This figure is still far below the government’s targeted level to achieve at least 75% of all Malaysians to be insured by year 2020. The strong performance in this industry as it is currently undergoing a transformation process following the implementation of the Life Insurance and Family Takaful Framework (LIFE Framework), which was enforced on 23rd November 2015. It is becoming one of the fastest emerging life insurance segments in the Asia-Pacific region. It is relevant to governmental/non-governmental agencies, as it appears as a guideline in achieving the 75% targeted level
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