Obiddin Yuldashev,
Ph.D., Associate Professor of the Department of Insurance and Pension affairs, Tashkent
Institute of Finance, Tashkent, Uzbekistan. E-mail:
ORCID: 0000-0002-9640-8128

Abstract. Studies have shown that the lack of knowledge about life insurance by many potential insurers and low confidence in insurance companies, consumer dissatisfaction with the quality of insurance services or lack of satisfaction leads them to abandon their decision to implement life insurance. Therefore, identifying the factors that may affect the demand for life insurance is a very important process. This research is the first study of the effect of socio-demographic, economic (financial), psychological and emotional factors on the demand for life insurance in Uzbekistan and serves to contribute the literature in this subject. This study used data about survey results of insured of life insurance companies in Uzbekistan. The questions of the survey were aimed at identifying the variables that affect the purpose of life insurance use of respondents, the level of satisfaction with insurance services and reuse of life insurance. In order to study the combined effect of these variables on the demand for life insurance, the “life insurance satisfaction index” of the respondents was created by the Bartlett method through factor analysis. Changes in this index will have a positive impact on the consumption of life insurance. Our results show that the income level has a curvilinear effect on the demand for life insurance. The demand for life insurance increases till the average monthly income of the respondents is 31.3 mln. soum, then it decreases. The increase in consumer spending will negatively affect the demand for life insurance. In addition, while assessing the impact of income level on demand for life insurance based on the instrumental variable approach, taking into account the impact of consumer spending on income change, gave a more accurate result. Thus, the two-stage least squares (2SLS) regression was performed and several post[1]estimation tests (first-stage regression of the instrument variable, Anderson-Rubin Wald test, and Cragg-Donald Wald F-statistics) were performed to ensure its reliability. However, it was found that the age, gender and level of education of the respondents did not depend on their demand for life insurance.

Keywords. life insurance, demand for life insurance, socio-demographic determinants, psychological and emotional determinants, life insurance satisfaction index, instrumental variable approach, factor analysis

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