IDEAS home Printed from https://ideas.repec.org/a/pal/gpprii/v35y2010i1sps82-s91.html
   My bibliography  Save this article

Determinants of Household Demand for Insurance: The Case of Korea

Author

Listed:
  • Soon-Jae Lee

    (School of Business, Sejong University, 98 Gunja-Dong, Gwangjin-Gu, Seoul 143–747, Republic of Korea)

  • Soon Il Kwon

    (Korea Insurance Development Institute, 35–4 Yeido-Dong, Yeongdeungpo-Gu, Seoul 150–606, Korea)

  • Seok Young Chung

    (Faculty of Business & Economics, Wonkwang University, 344–2 Shinyong-Dong, Iksan, Chullabuk-Do, 570–749 Korea)

Abstract

This article analyses the effect of household characteristics on the demand for insurance using consumer survey data in Korea. Using Tobit analysis, we have found that the self-employed have a stronger demand for insurance than salaried workers, and that residents of small cities and rural areas purchase more protection-type insurance than metropolitan residents. Demand for insurance can differ depending on employment type and residential area, which has not been examined in previous studies. We have also found that there is a curvilinear relationship between age and demand for insurance. Results suggest that households with different demographic characteristics choose different risk-reducing instruments.

Suggested Citation

  • Soon-Jae Lee & Soon Il Kwon & Seok Young Chung, 2010. "Determinants of Household Demand for Insurance: The Case of Korea," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 35(S1), pages 82-91, December.
  • Handle: RePEc:pal:gpprii:v:35:y:2010:i:1s:p:s82-s91
    as

    Download full text from publisher

    File URL: http://www.palgrave-journals.com/gpp/journal/v35/n1s/pdf/gpp201029a.pdf
    File Function: Link to full text PDF
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: http://www.palgrave-journals.com/gpp/journal/v35/n1s/full/gpp201029a.html
    File Function: Link to full text HTML
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Pradhan, Rudra P. & Arvin, Mak B. & Norman, Neville R., 2015. "Insurance development and the finance-growth nexus: Evidence from 34 OECD countries," Journal of Multinational Financial Management, Elsevier, vol. 31(C), pages 1-22.
    2. Lee, Chien-Chiang & Lee, Chi-Chuan & Chiu, Yi-Bin, 2013. "The link between life insurance activities and economic growth: Some new evidence," Journal of International Money and Finance, Elsevier, vol. 32(C), pages 405-427.
    3. J. François Outreville, 2011. "The relationship between insurance growth and economic development - 80 empirical papers for a review of the literature," ICER Working Papers 12-2011, ICER - International Centre for Economic Research.
    4. Rangan Gupta & Amine Lahiani & Chi-Chuan Lee & Chien-Chiang Lee, 2016. "Asymmetric dynamics of insurance premium: The impacts of output and economic policy uncertainty," Working Papers 201673, University of Pretoria, Department of Economics.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:gpprii:v:35:y:2010:i:1s:p:s82-s91. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla) or (Rebekah McClure). General contact details of provider: http://www.palgrave-journals.com/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.