خلاصة:
In this article, the relationship between income and insurance demand is examined, and income and factors affecting the average propensity to insure and how it is applied in national markets are discussed. Using the Keynesian income theory, a person's total income in society is partly spent on current goods and services and part of it is spent on durable goods and services such as purchasing a private home, automobile, jewelry, etc. People take action to purchase insurance when they have an adequate income; therefore, with the increase in individual and private incomes, the average propensity to insure increases. Additionally, factors affecting national income such as national income distribution, inflation, recession, and the balance of payments affect the average propensity to insure. Economic growth affects insurance demand; how incomes are distributed and redistributed raises the standard of living and consequently increases the demand for insurance coverage. Conversely, during times of economic recession when faced with mass unemployment, the demand for insurance will decrease. A positive balance of payments (increase in exports) increases the average propensity to insure. Of course, other factors such as the level of culture, political progress, and population growth also affect insurance demand.
ملخص الجهاز:
Economic growth affects insurance demand; the manner of income distribution and income redistribution raises the standard of living and consequently increases the demand for insurance coverage.
Keywords: Average propensity to insure-Income redistribution-Balance of payments-Economic growth-Inflation-Recession-Export of durable goods-Consumer goods-Financial income-Current expenses Introduction Insurance is actually a mixture of three factors: mathematical statistics, law, and economics.
If average incomes are high, the redistribution of income will raise the standard of living and increase the demand for durable goods and industrial products, while also increasing the demand for current consumption and consequently decreasing the demand for insurance coverage.
Third stage) the income range Y1 Y2 shows that the rising standard of living leads to a significant increase in the average propensity to insure.
Negative elasticity means that insurance demand will decrease under conditions where income increases; in this case, which is a relatively rare situation, insurance services are not considered normal goods but rather inferior goods.
(Refer to the page image) Considering the table above, it can be observed that from the year 1350 until the end of 1352, the income elasticity of demand for insurance has been approximately 1, which indicates that the growth of premiums is equivalent to general economic growth.
However, in the year 1353, the demand for insurance was elastic, which means that the growth of premiums was greater than the growth of Gross Domestic Product.
However, in the year 1353, the demand for insurance was elastic, which means that the growth of premiums was greater than the growth of Gross Domestic Product.
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