Life Insurance Products Research Articles

Consumer Awareness and Perception of Life Insurance: A Descriptive Analysis of Influencing Factors

This study investigates consumer perceptions of life insurance, examining the factors that influence individuals' attitudes, preferences, and decision-making processes. Despite the critical role of life insurance in financial planning, many consumers remain hesitant or misinformed about its benefits. Key findings indicate that while awareness of life insurance has increased, misperceptions and distrust still hinder its adoption. The study also highlights the role of financial literacy, brand reputation, and advisory services in shaping positive consumer perceptions. These insights underscore the need for more targeted, transparent, and informative marketing strategies by insurers to address consumer concerns and improve the overall appeal of life insurance products. The paper concludes with recommendations for insurers to build trust and tailor policies to meet the specific needs of diverse consumer groups.

Survey‐based insights from choice‐based conjoint analyses on customer preferences for company characteristics of life insurers

AbstractThe aim of this paper is to investigate customer preferences for certain company characteristics when purchasing life insurance products. We focus on ratings provided by aggregators, namely financial strength, sustainability, service quality, and type of customer touchpoint (online vs. in person), while also studying potential product‐specific differences between annuities and term life policies. Toward this end, we conduct two choice‐based conjoint analyses with 529 and 543 German respondents to estimate individual preference structures. Consistent with economic expectations, we observe statistically significant higher preferences for better ratings of the life insurer, which also materialize in the respondents' marginal willingness to pay. One main finding is that customer preferences in our sample are asymmetric, with a strong focus on avoiding below‐average ratings. Furthermore, for both annuities and term life insurances, the relatively most important life insurer attribute for customers is financial strength, followed by service quality, sustainability, and type of customer touchpoint.

The risk screening effect of digital insurance distribution

AbstractExtant research holds that digital sales channels advance competition and service or goods availability but rarely details the attendant information asymmetry. Leveraging a large unique dataset, this study examines a specific case in which consumers have a choice between offline and digital channels for insurance purchases. We find that digital channels screen in consumers with lower unobserved risk. For term life, endowment and disease insurance products, the average risks of the policies purchased through digital channels were significantly lower than those purchased offline after controlling for all observed risk characteristics. This risk screening effect mainly comes from the inclusion of new low‐risk enrollees. As a consequence, digital channels exhibit lower information asymmetry and greater profitability compared to offline channels.

Analisis Implementasi Strategi Pemasaran Asuransi Pendidikan Mitra Iqra Plus Dalam Kajian Asuransi Syariah

Atika Andriani1, Sri Ramadhani, Rahmat Daim Harahap2 1 FEBI UIN Sumatera Utara, Indonesia atikaandriani98@gmail.com1, Sriramadhani@gmail.com2, rdainharahap@uinsu.ac.id3 ABSTRACT Mitra Iqra Plus is one of the products owned by PT. Bumiputera Sharia Life Insurance, KPS Medan, which aims to help fund children's education. The purpose of this study was to determine the implementation of Mitra Iqra Plus' educational insurance marketing strategy in the study of sharia insurance at PT Asuransi Jiwa Syariah Bumiputera, KPS Medan, the application of sharia principles in the implementation of marketing life insurance products at PT Asuransi Jiwa Syariah Bumiputera, KPS Medan, and challenges in implementing sharia. marketing conducted by PT Asuransi Jiwa Syariah Bumiputera, KPS Medan. This type of research uses qualitative research. Data collection techniques in the form of interviews, observations, and documentation. The data analysis technique used is to reduce the data, present the data, then draw conclusions. The results show that PT Asuransi Jiwa Syariah Bumiputera, KPS Medan implements according to sharia marketing principles starting from Wisdom (Strategy), Needs (Needs), Halal (Tayyibat), Welfare (Falah), Mutual Consent. The inhibiting factors in implementing the Mitra Iqra Plus educational insurance marketing strategy are the lack of public knowledge about sharia insurance, lack of public trust in sharia insurance, lack of agents and customers who are difficult to collect for premium payments. The challenge is the lack of technology development, the weak market share of PT. AJS Bumiputera due to lack of support from the government and the community. Keywords: Implementation of Sharia Marketing Strategy, Mitra Iqra Plus, Sharia Insurance.

Analysis of Customer Engagement towards Customer Loyalty through Customer Trust in Traditional Life Insurance Products in South Tangerang City

The insurance services industry as a business of trust is still considered to have not fully gained the trust of its customers and the minimal involvement of its customers means that the reality is that customer loyalty is decreasing in terms of purchasing insurance products, especially traditional life insurance. Especially in the private sector as a guarantor institution that can provide protection for life. This study aims to test the effect of customer involvement on customer loyalty through customer trust. The approach used in this study is a quantitative approach. The population and sample used in this study were all customers who have traditional life insurance products in South Tangerang City, totaling 120 respondents with a sampling technique using the saturated sample method. The research data were obtained from the results of filling out the questionnaire and analyzed using the SEM analysis method technique with the help of the Lisrel program. The results of the study indicate that (1) Customer involvement has no effect on Customer Trust (2) Customer involvement has an effect on customer loyalty (3) Customer involvement has an effect on customer loyalty through customer trust.

Challenges Faced By Prospective Policy Holders To Select The Life Insurance Products With Special Reference To Chengalpattu District

Challenges Faced By Prospective Policy Holders To Select The Life Insurance Products With Special Reference To Chengalpattu District

Impact of correlation between interest rates and mortality rates on the valuation of various life insurance products

AbstractIn this paper, we question the traditional independence assumption between mortality risk and financial risk and model the correlation between these two risks, estimating its impact on the price of different life insurance products. The interest rate and the mortality intensity are modelled as two correlated Hull and White models in an affine set-up. We introduce two building blocks, namely the zero-coupon survival bond and the mortality density, calculate them in closed form and perform an investigation about their dependence on the correlation between mortality and financial risk, both with theoretical results and numerical analysis. We study the impact of correlation also for more structured insurance products, such as pure endowment, annuity, term insurance, whole life insurance and mixed endowment. We show that in some cases, the inclusion of correlation can lead to a severe underestimation or overestimation of the best estimate. Finally, we illustrate that the results obtained using a traditional affine diffusive set-up can be generalised to affine jump diffusion by computing the price of the zero-coupon survival bond in the presence of jumps.

Manajemen Strategi Pemasaran Produk Manulife Saving Protector pada PT Asuransi Jiwa Manulife Surabaya Pusat

One of the best insurance companies in Indonesia is PT Asuransi Jiwa Manulife Indonesia, a financial services provider from Canada that operates in Asia, Canada and the United States. Headquartered in Toronto, Canada, Manulife has been serving customers for more than 155 years. Manulife is traded under the symbol ‘MFC’ on the Toronto, New York and Philippine stock exchanges, and under the symbol ‘945’ in Hong Kong. Manulife Indonesia has offered a variety of financial services including life insurance, accident and health insurance, investment services and pension funds to individual customers and business actors in Indonesia. Manulife Indonesia has served more than 2 million customers in Indonesia through a network of more than 11,000 employees and professional agents spread across 30 marketing offices. Given the increasing market potential in Indonesia, many insurance companies, both local and foreign, are trying to reach the market in Indonesia. In order for the company to be able to compete with other insurance companies, a sales strategy and product are needed that can attract the interest of its customers. One of the most popular products owned by PT AJ Manulife Indonesia is Manulife Saving Protector, which is the only individual dual-purpose life insurance product (endowment) that can provide Insurance Money of up to IDR 1.5 billion without having to undergo a medical examination first. The insurance industry in 2023 is projected to increase along with improving economic conditions in Indonesia. However, the level of public distrust can hinder the development of this industry. This causes many people to tend to delay opening an insurance policy.

Individual’s Choice on Buying Life Insurance Products in Nepal

This study examines the factors influencing individual’s choice on buying life insurance products in Nepal. An individual’s choice on buying life insurance policy is selected as the dependent variable. The independent variables are company loyalty, premium charge, agent, claim settlement and company image. The primary source of data is used to assess the opinions of the respondents regarding individual’s choice on buying insurance products in Nepal. The study is based on primary data with 151 respondents. To achieve the purpose of the study, structured questionnaires is prepared. The correlation coefficients and regression models are estimated to test the significance and importance of different factors driving individual’s choice on buying life insurance products in Nepal. The study showed that company loyalty has a positive impact on individual’s choice on buying life insurance policy. It indicates that company’s loyalty towards consumer stimulates the individual’s choice on buying insurance products in Nepal. Similarly, premium charge has a positive impact on individual’s choice on buying life insurance products. It indicates that fair premium charge stimulates the individual choice. Similarly, agent of the respective company has a positive impact on individual’s choice on buying life insurance products. It indicates that the behaviour and knowledge of agents impulse individuals’ choice on buying life insurance products. The study also showed that claim settlement has a positive impact on individual’s choice. It indicates that proper claim settlement process stimulates the individuals’ choice on buying life insurance products. Furthermore, company image has a positive impact on individual’s choice on buying life insurance policy. It indicates that good company image stimulates individual’s choice on buying life insurance products in Nepal.

Implementasi Metode New Jersey dalam Perhitungan Cadangan Premi dengan Suku Bunga Stokastik dan Konstan

Premium reserve allocation represents an obligation undertaken by insurance companies to set aside funds for future claims payment to policyholders. Some insurance companies have faced operational challenges, leading to their closure, primarily due to inaccurate premium reserve computations. This research aims to calculate premium reserve in lifelong insurance using the New Jersey method, an improvement upon the Illionis method. The New Jersey method initiates the premium reserve at the beginning or end of the first year at zero dollars. The majority of premium reserve calculations still rely on constant interest rates. However, in reality, this approach inadequately reflects future fluctuations in interest rates, which are crucial for long-term life insurance products. Therefore, this study implements a more realistic approach using stochastic elements, using the Vasicek stochastic interest rate model to determine premium reserve values. From this research, it was found that there was quite a significant difference between the New Jersey method premium reserve value and the two interest rates. The calculation graph shows that the premium reserve value using the Vasicek model of stochastic interest rates tends to be lower than when using constant interest rates. This can be caused by the results of non-constan variations in interest rates in the Vasicek model which ultimately results in fluctuations in interest rates which wffect the calculation of premium reserve.

Constructing the Discount Function with Parsimonious Extended Nelson-Siegel Function: Evidence from Nigerian Eurobond

Nigeria currently carrying out economic reforms is under the surveillance of institutional investors. To construct the market discount function through its yield curve, we applied the extended functional Nelson-Siegel parsimonious function with time-decay parameters to the Eurobond data to employ flexibility of the model and estimate the time varying parameters. In order to present a deep investigation of the Euro-bond market by reason of time to maturity, our contribution is anchored on following objectives: (i) construct the discount function (ii) investigate the limiting behavior of the yield curves and (iii) predict the in-sample yield. The data presented involves the daily closing of the Nigerian Eurobond yield covering January to December 2021 and 2022. The data was fitted to the observed Nigerian Eurobond yield curve to model the discount function. The ordinary least square method is used for the analysis and the estimated parameters were used to compute the in-sample yield. Test of goodness of fit was conducted showing that the model fits in well to the observed data demonstrated by the model’s R-square adjusted through the predicted yields after obtaining the two decay factors. This paper has implications on life insurance products associated with minimum guaranteed benefit schemes for the insured. Based on the terms and conditions of the contract, the insured pays regular premium invested in debt instruments and receives benefit at death or at maturity of the policy depending on the market performance of the fund. There is a guaranteed benefit which the insured earns irrespective of the performance of the life fund. The insurer would then pay the guaranteed amount even if the benefit eventually drops below the guaranteed amount. Given the discount 𝛿(𝜏)and benefit∅, the present value of future death benefits is modeled as 𝑃𝑉𝐹𝐵 = ∅1𝛿(1) + ∅2𝛿(2) + ⋯ + ∅𝑇−1𝛿(𝑇 − 1) + ∅𝑇𝛿(𝑇).

IMPACT OF CONSUMER PERCEIVED BENEFIT AND RISK TOWARDS THE PURCHASE INTENTION OF LIFE INSURANCE PRODUCTS WITH CONSUMER PERCEIVED FEAR AS A MEDIATING VARIABLE ON BANK JATIM JEMBER BRANCH

The aim of this research is to determine the influence of perceived benefits and perceived risks on intention to purchase life insurance products with consumer perceived fear as a mediating variable. The sampling method uses non-probability sampling with a purposive sampling technique, namely respondents are selected based on certain criteria. Hypothesis testing in this research uses SEM (Structured Equation Modeling) analysis and the program used for analysis is AMOS (Analysis of Moment Structure). The results of this study indicate that Perceived Risk significantly influences Intention to Purchase Life Insurance Products while Perceived Benefit does not have a significant effect. Perceived Risk also significantly influences Life Insurance Consumer Perceived Fear while Perceived Benefit does not have a significant influence. Lastly, Consumer Perceived Fear acts as a mediating influence on Risk Perception on Intention to Purchase Life Insurance Products.

Modeling paid-ups in life insurance products for risk management

Modeling paid-ups in life insurance products for risk management

Robust assessment of life insurance products

AbstractIn this paper we propose a robust assessment for the premium of a standard life insurance contract with respect to the uncertainty on the estimated residual lifetime distribution function. Specifically, we provide a method to derive the range of values that the premium of a given contract can attain when considering all residual lifetime distribution functions that satisfy an $$L^2$$ L 2 distance constraint to a reference distribution function. Furthermore, we show that the $$L^2$$ L 2 distance constraint can be used as flexible starting point to include further information regarding future mortality.

“Uninsurable because of a genetic test”: a qualitative study of consumer views about the use of genetic test results in Australian life insurance

Genetic testing can provide valuable information to mitigate personal disease risk, but the use of genetic results in life insurance underwriting is known to deter many consumers from pursuing genetic testing. In 2019, following Australian Federal Parliamentary Inquiry recommendations, the Financial Services Council (FSC) introduced an industry-led partial moratorium, prohibiting life insurance companies from using genetic test results for policies up to $AUD500,000. We used semi-structured interviews to explore genetic test consumers’ experiences and views about the FSC moratorium and the use of genetic results by life insurers. Individuals who participated in an online survey and agreed to be re-contacted to discuss the issue further were invited. Interviews were 20–30-min long, conducted via video conference, transcribed verbatim and analysed using inductive content analysis. Twenty-seven participants were interviewed. Despite the moratorium, concerns about genetic discrimination in life insurance were prevalent. Participants reported instances where life insurers did not consider risk mitigation when assessing risk for policies based on genetic results, contrary to legal requirements. Most participants felt that the moratorium provided inadequate protection against discrimination, and that government legislation regulating life insurers’ use of genetic results is necessary. Many participants perceived the financial limits to be inadequate, given the cost-of-living in Australia. Our findings indicate that from the perspective of participants, the moratorium has not been effective in allaying fears about genetic discrimination or ensuring adequate access to life insurance products. Concern about genetic discrimination in life insurance remains prevalent in Australia.

Analisis Penggunaan Asuransi Jiwa dalam Pembiayaan Mudharabah di BPRS Gebu Prima Medan

This research discusses the use of life insurance in mudharabah financing at BPRS Gebu Prima Medan. The introduction explains the background to the importance of using life insurance in the context of sharia financing, especially in minimizing credit risk and providing financial protection for customers. The literature review outlines theories related to sharia financing and the role of life insurance in risk management. The research method used is a qualitative approach with data collection techniques in the form of interviews and direct observation. The research results show that the majority of BPRS Gebu Prima Medan customers who take advantage of mudharabah financing also take out life insurance protection. The profile of customers who tend to use life insurance are those who have a significant risk of death, such as micro and small entrepreneurs with large family responsibilities. However, there is still a small number of customers who have not utilized life insurance products, so further research is needed to understand the factors that influence customer decisions and strategies that can be implemented to increase the adoption of life insurance products among customers.

Illuminating Choices: A Study on Consumer Awareness at HDFC Life Insurance

This research abstract provides an overview of a study focused on consumer awareness in the context of HDFC Life Insurance. Employing a mixed-methods approach, this study combines qualitative insights and quantitative analyses to explore the levels of awareness, understanding, and perceptions among consumers regarding life insurance products offered by HDFC Life. The qualitative aspect of the study involves interviews, surveys, and customer feedback analysis to capture nuanced perspectives on the awareness levels among consumers regarding HDFC Life Insurance. Simultaneously, quantitative data analysis will be utilized to identify trends, correlations, and statistical patterns associated with consumer knowledge and perceptions.
 Various dimensions of consumer awareness will be investigated, including the impact of financial literacy, communication strategies employed by HDFC Life, and the overall effectiveness of educational initiatives. The study aims to provide insights into how life insurance providers can enhance consumer understanding and engagement. The findings from this research are anticipated to offer valuable insights for HDFC Life Insurance, insurance professionals, and policymakers. By understanding the intricacies of consumer awareness, stakeholders can refine communication strategies, improve educational initiatives, and contribute to the broader goal of enhancing financial literacy in the domain of life insurance. This study serves as a foundation for informed decision-making and future research within the realm of consumer awareness in the insurance sector.

High Quality Development of Regional Inclusive Insurance in China: Based on Logistic Multiple Linear Regression Model

As one of the key projects of poverty alleviation, inclusive insurance has received much attention in recent years. In May 2022, the Banking and Insurance Regulatory Bureau issued a document entitled “Circular on further enriching the supply of Life Insurance products”, which is intended to encourage more commercial insurance companies to participate in the construction of an inclusive insurance system closely related to the protection of people's livelihood. First of all, from the background of the development of inclusive insurance, this paper finds that there is still a gap in basic medical security, and inclusive insurance will play an important role in the development of the “main artery”. The second part focuses on the profound connotation of inclusive insurance from the perspectives of the product characteristics, operation mode, development status of each region, protection scope and so on. The third part makes an in-depth analysis of the factors affecting the inclusive insurance participation rate based on the multiple linear regression model and finds that the opening of basic medical insurance to individual accounts is important factors affecting the inclusive insurance participation rate. Starting from the reality of inclusive insurance, the last part of this paper puts forward three suggestions for the future development of inclusive insurance based on the coverage, “product &service”, multi-channel of science and technology.

Factors affecting the intention of purchasing life insurance in Dong Nai province

Life insurance not only plays a role in financial protection and savings for individuals and families, but also contributes to ensuring social security and sustainable economic development. Therefore, the article aims to determine the factors affecting individual customers' intention for buying life insurance in Dong Nai province. On that basis, the authors propose that the implication of corporate governance contributes to increasing the intent to purchase life insurance products. In the research paper, the authors used a qualitative method through document research, studying documents related to the research topic. Quantitative research was carried out with a sample of 350 customers, multiple linear regression analysis, and identified five factors with a significance level of 5%. Finally, the authors have proposed five governance implications in order of priority: Safety, social influence, convenience, ease of use, and benefits. Research results contribute to orientation for insurance organizations to improve the quality of life insurance products to better serve customers.

COVID-19 and Excess Mortality: An Actuarial Study

The study of mortality is an ever-active field of research, and new methods or combinations of methods are constantly being developed. In the actuarial domain, the study of phenomena disrupting mortality and leading to excess mortality, as in the case of COVID-19, is of great interest. Therefore, it is relevant to investigate the extent to which an epidemiological model can be integrated into an actuarial approach in the context of mortality. The aim of this project is to establish a method for the study of excess mortality due to an epidemic and to quantify these effects in the context of the insurance world to anticipate certain possible financial instabilities. We consider a case study caused by SARS-CoV-2 in Belgium during the year 2020. We propose an approach that develops an epidemiological model simulating excess mortality, and we incorporate this model into a classical approach to pricing life insurance products.