Determinants of the Demand for Life Insurance Evidence from Jordan


  • Demeh Daradkah



Jordan, Life Insurance demand, Insurance Density, Time Series


This study investigates the relationship between the demand for life insurance measured by annual life insurance premiums and insurance density and some economic and demographic variables in Jordan during 1970 and 2012, using Ordinary Least Square (OLS) estimation. We find evidence that the demand for life insurance products is influenced by increase in income level and urbanization, suggesting that the life insurance industry can be well developed in lower-middle income country.

In addition, the demand for life insurance in Jordan increases during inflationary period because, the average economic growth rates was higher than the average level of inflation rates during the period under study. However, the study found no evidence of young dependency on the demand for life insurance in Jordan, sug- gesting increasing the attention on products to protect against morality risk. Future research is recommended in this area for Jordan including other economic and demographic variables and investigating the supply side of life insurance in Jordan.