Current Trends in the Life Insurance Industry and Their Impact on Market Development (Case Study: Iran Insurance Company in East Azerbaijan Province)
Subject Areas : Journal of Value Chain Management
Akbar Valizadeh Oghani
1
*
,
Nazi Pourshiri
2
,
Amir Ata Alizadeh
3
1 - Assistant Professor., Department of Management and Accounting, Sara. C., Islamic Azad University, Sarab, Iran
2 - MSc., Department of Financial Management, Insurance Branch, Shams Institute of Higher Education in Science and Technology, Tabriz, Iran.
3 - MSc., Department of Accounting,, Seraj Institute of Higher Education, Tabriz, Iran.
Keywords: Inflation Changes, Economic Stability, Social Security, Life Expectancy, Household Income.,
Abstract :
In recent years, understanding the factors influencing customer behavior in the life insurance market has become a fundamental focus of socio-economic analyses. Variables such as inflation rate, economic stability, household income level, life expectancy, social security, and insurance literacy are key elements in explaining and analyzing the behavior of life insurance consumers. Therefore, the present research aims to investigate the prevailing trends in the life insurance industry and their impact on market development, with a specific focus on Iran Insurance Company in East Azerbaijan Province. This study is categorized as applied research in terms of its objective, and its nature and methodology are descriptive-survey. Data was collected through a researcher-developed questionnaire with the participation of managers and experts from Iran Insurance Company. The collected data was then analyzed using SPSS software and both descriptive and inferential statistical tests. The findings indicate that inflation has a negative and significant role in the development of the life insurance market. This is because an increase in the general price level weakens household purchasing power, thereby reducing the inclination towards long-term life insurance policies. In contrast, economic stability and household income did not show a significant impact, which could be attributed to structural or cultural factors influencing household behavior. Furthermore, increased life expectancy, enhanced social security, and insurance literacy have a positive and significant impact on life insurance demand, due to the expansion of life's time horizon and increased public awareness.
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