A Dynamic Analysis of the Impact of Household Portfolio Allocation Decisions on the Demand for Life Insurance

Authors

  • Ning Wang
  • Yiling Deng
  • Ruohan Wu

DOI:

https://doi.org/10.61190/fsr.v31i4.3181

Keywords:

panel data, life insurance, household portfolio; asset allocation

Abstract

Prior research on the demand for life insurance in household portfolio holdings has not made a clear distinction between portfolio shifts resulting from active allocation decisions and those resulting from passive acceptance. Our study examines the relationship between household portfolio allocation decisions and the demand for life insurance in a dynamic setting, using panel data before and after the 2008 financial crisis. The study provides the first evidence that household decisions to invest in cash and cash equivalents, bonds, retirement assets, and pay off debts significantly affect life insurance ownership.

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Published

2024-03-22

How to Cite

Wang, N., Deng, Y., & Wu, R. (2024). A Dynamic Analysis of the Impact of Household Portfolio Allocation Decisions on the Demand for Life Insurance. Financial Services Review, 32(1), 1–28. https://doi.org/10.61190/fsr.v31i4.3181

Issue

Vol. 32 No. 1 (2024): Financial Services Review

Section

New Original Submission

License

Copyright (c) 2024 Ning Wang, Yiling Deng, Ruohan Wu

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